Income Tax

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INCOME TAX

 

The amount of tax you are required to pay depends on your annual income and NOT on how many hours you work. At the end of each tax year you will get a P60 Form from your employer which shows how much tax and national insurance (NI) you have paid and how much you have earned.


REMEMBER

The UK tax year begins on the 6th April and ends on 5th April of the following year.

For example, 2016/17 UK tax year began on the 6th April 2016 and will end on the 5th April 2017.


 

 WHAT IS A PERSONAL ALLOWANCE

 

Every worker is entitled to ‘a personal allowance’ on which tax does not have to be paid. If you earn less than your personal allowance you do not have to pay income tax.

The Personal allowance for 2015-2016 (for people born after 5 April 1938) is £10,600 and for 2016-2017 will be £11,000. Check the Income Tax allowance table here. If you earn more than the Personal allowance you will either pay 20, 40 or 50% of Income Tax depending on how much you earn. The more you earn the higher the tax rate. You can use this online tax calculator and simply type in your details, earnings and it will calculate all the deductions according to your circumstances.

 

WHERE TO APPLY FOR A TAX REFUND

 

If you think you have paid more tax than you should have, you can claim a refund by filling in a form which you can find and download online. HM Revenue and Custom will be able refund the money in a form of a cheque.

 


REMEMBER

It is of high importance to keep your P60 Form safe as it is your proof of tax and NI contribution.


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