At Home : Income Tax

Chappell Associates advise on all aspects of personal taxation and help deal quickly and effectively with HM Revenue & Customs.

Income tax is levied on an individual to cover all sources of income arising in the tax year.

Certain personal allowances are granted based on your individual circumstances. If a new source of income arises, this may increase your tax bill by putting total taxable income into a higher tax band.

If you are an employee, your income tax is automatically deducted via the PAYE system. If you are self-employed then you are responsible for assessing and paying your own tax.

Income Tax Allowances	2009-10(£)	2010-11(£)
Personal Allowance	6475	6475
Personal allowance (People Aged 65-74)	9490	9490
Personal allowance (People Aged 75+)	9640	9640
Income limit for age related allowances	22900	22900
Married Couples Allowance for people born before 6 April 1935	6865	6865
Married Couples Allowance (People aged 75+)	6965	6965
Blind Persons Allowance	1890	1890
'Rent a Room' Limit	4250	4250

The rate of relief for the continuing married couple's allowance and maintenance relief for people born before 6 April 1935 is 10%.

Taxable Bands	2009-10(£)	2010-11(£)
Basic Rate 20%	1-37,400
Higher Rate 40%	Over 37,400	Over 37,400

	2009-10	2010-11(£)
Trusts	40%	40%