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At Home : Income Tax
Chappell Associates advise on all aspects of personal taxation and help deal quickly and effectively with the Inland Revenue.
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 | 2005-06(£) | 2006-07(£) |
| Personal Allowance | 4,895 | 5,035 |
| Personal allowance (People Aged 65-74) | 7,090 | 7,280 |
| Personal allowance (People Aged 75+) | 7,220 | 7,420 |
| Income limit for age related allowances | 19,500 | 20,100 |
| Married Couples Allowance for people born before 6 April 1935 | 5,905 | 6,065 |
| Married Couples Allowance (People aged 75+) | 5,975 | 6,135 |
| Blind Persons Allowance | 1,610 | 1,660 |
| 'Rent a Room' Limit | 4,250 | 4,250 |
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 | 2005-06(£) | 2006-07(£) |
| Starting Rate 10% | 0-2,090 | 0-2,150 |
| Basic Rate 22% | 2,091-30,310 | 2,150-31,150 |
| Higher Rate 40% | Over 32,400 | Over 33,300 |
| 2005-06 | 2006-07(£) |
| Trusts | 40% | 40% |
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Wiltshire, Somerset, Bath, Bristol, Swindon, Salisbury and surrounding areas.
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