Tips About UK Personal Tax Allowance - Tax Year 2017-2018

from the blog.

Tips About UK Personal Tax Allowance – Tax Year 2017-2018

London City

For the current tax year, 6 April 2017 to 5 April 2018, the standard personal allowance is £11,500, which is completely tax-free. Anything you earn over that will be taxable.

How much income tax you would have to pay?

The amount will depend on which income band you fall on whether or not looking for marriage allowance or blind person’s allowance.

If you earn up to £11,500, which is the same amount as the Personal Allowance, you will pay zero tax. If you earn the basic
rate, which ranges from £11,500 to £45,000, you will have to pay tax that is 20% of your basic rate.

If you fall within the higher rate band, with an income of anywhere between £45,001 and £150,000, you will be taxed 40% of your earnings.

If you are over £150,000, you must pay a tax of 45% of your income.

For easy calculation, know which tax income band you fall on and other tax-free allowances you are eligible for. This can help lessen the amount of income tax you pay.

Tax will be automatically deducted from your salary regularly through the Pay As You Earn – PAYE Tax Refunds program along with your National Insurance contribution.

When the times comes for UK Tax Returns you may wish to take a  Self Assessment UK.

When will Personal allowance vary?

When you claim for a Blind Person’s Allowance or Marriage Allowance, where personal allowance is bigger. Under the
circumstances, you can earn £15,000 and still pay 0% tax, for example.

If you feel you may have been overtaxed you may want to seek the advice of a tax agent who can help you claim back tax.

Think you may be due a tax refund? Apply here to get your tax back.



Related Posts

3 Tips to Manage your Money when Buying Online

The internet revolution has meant that it’s never been easier to buy goods and services online. The sheer convenience of online shopping has meant that many people are now choosing to buy goods at some unusual times of the day. ...

UK Taxation for Foreign Residents

Tax Refunds UK Expats Can Claim As an employed expat in the UK, you are obliged to file a UK tax return and also claim tax refunds UK taxpayers are entitled to. Not all taxpayers can claim a refund on...

What is the 2019/20 PAYE Tax Code?

Could You Be Due for Tax Refunds? UK Taxpayers Time to Get Updated! Check the PAYE tax codes and seek tax refunds, UK taxpayers are eligible to claim from HMRC for any overpaid income tax! Under the wrong PAYE tax...

Leave a Reply

Translate »