Tax is a complex area of law that can be very difficult to understand due to its calculations and also its constantly changing rules. Your personal tax is calculated by how much you earn and how much it is above your personal allowance and where it falls within each tax band. A personal allowance is the amount of money you do not need to pay any tax on. The current rate of personal allowance is £10,600.
The following are the current income tax rates:
- Basic rate 20% for incomes of £0 to £32,785;
- Higher rate 40% for incomes of £32,786 to £150,000; and
- Additional rate 45% for income over £150,001.
Income tax on savings and or dividends is typically 20%. However, it does fluctuate with your income. In some circumstances you can apply for income tax relief. You can also apply for new marriage allowance if you earn less than £10,600 in the 2015 to 2016 tax year. This would reduce your partner’s tax.
Tax can be difficult to calculate. At Bloomsbury Law, we have years of experience in tax law. If you have any queries about your tax or simply require some advice, please give us a call so we can advise you accordingly once we are instructed.
What do I do next?
Contact us online or speak to one of our dedicated specialists on 0207 998 7777 for a free initial consultation. With our vast experience in the field, our bilingual speaking team will work with you to ensure this process runs as smooth as possible. All information you provide us with is treated with the utmost confidentiality.
We will contact you no later than the next working day to arrange a meeting at our offices in London W1 to advise on the agreement.