Many people are under the impression that when they retire they will no longer have to pay any tax. Unfortunately this is not true. There is one benefit of reaching State Pension Age and that is that you no longer have to pay National Insurance Contributions. However, tax is another matter. Continue reading Do I Still Pay Tax When I Retire?
Monthly Archives: March 2012
Blind Person’s Allowance
If you are registered blind then, in addition to the standard single person’s allowance, you are also entitled to a blind person’s allowance which amounts to £1,980 for the tax year 2011-12. This will be increased to £2,100 for the tax year 2012-13. Continue reading Blind Person’s Allowance
ISA Allowances 2011-12
As it is approaching the end of the tax year many people are thinking about whether they can afford to top up their ISA with the maximum amount that they are allowed to pay into it for the tax year. ISAs are split between two types – cash ISAs and equity ISAs. ISAs are a simple means of saving without paying tax. Continue reading ISA Allowances 2011-12
Why Am I Not Getting the Full UK Tax Allowance?
If you are a UK taxpayer then for the tax year 2011-12 the personal allowance for the year is £7,475. However, most people who are under the PAYE scheme (pay as you earn, where your tax is deducted by your employer), will be sent a tax coding notice from HM Revenue to advise you of your own specific tax allowance. Continue reading Why Am I Not Getting the Full UK Tax Allowance?
UK Tax Allowances 2011-12
The UK tax allowances for 2011-12 were, to a certain extent, significantly increased from the previous tax year. The government had set a target of increasing the personal tax free allowance for individuals to be £10,000 but this would be introduced gradually over a number of years. The standard personal allowance was increased by a full £1000 from the previous tax year. Continue reading UK Tax Allowances 2011-12
Personal Allowance for High Earners
Before 6 April 201, everyone was entitled to the personal allowance so that they could earn the first tranche of their pay tax free. However for the tax year 2010-11, a cap was introduced for the tax free personal allowance that meant that people earning over £100,000 a year would either receive a reduced personal allowance or no personal allowance at all. Continue reading Personal Allowance for High Earners
Capital Gains Tax
When looking at UK tax allowances, Capital Gains Tax (CGT) is another thing that needs to be taken into account. Each individual has a separate allowance for Capital Gains Tax, and any money that is made on gains that are subject to CGT are charged at different rates, depending on the total income of the individual for that year. Continue reading Capital Gains Tax
UK Personal Allowance 2010
Each person is entitled to a personal allowance in each tax year to offset against their earnings. The personal allowance is an amount of money that they can earn before having to pay any tax.
The personal allowance varies from year to year and the increases are usually in line with the increase in the retail prices index. Continue reading UK Personal Allowance 2010