What you should know:
Income Tax (Also known as pay as you earn)
This is tax deducted from salary paid by an employer.
Tax is due monthly on 22nd of the following month. If you pay staff on the 30th April, the tax is due to the revenue by the 22nd of May
Tax is due quarterly on the 19th of January, April, July and October of each year if the Contributions are less than £1500 per month.
Income Tax rates and bands
The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,500.
Income tax bands are different if you live in Scotland.
|
Band |
Taxable income |
Tax rate |
|---|---|---|
|
Personal Allowance |
Up to £12,500 |
0% |
|
Basic rate |
£12,501 to £50,000 |
20% |
|
Higher rate |
£50,001 to £150,000 |
40% |
|
Additional rate |
over £150,000 |
45% |
You can also see the rates and bands without the Personal Allowance. You do not get a Personal Allowance on taxable income over £125,000.
VAT rates for goods and services
|
Rate |
% of VAT |
What the rate applies to |
|---|---|---|
|
Standard |
20% |
Most goods and services |
|
Reduced rate |
5% |
Some goods and services, eg children’s car seats and home energy |
|
Zero rate |
0% |
Zero-rated goods and services, eg most food and children’s clothes |
The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%).
Some things are exempt from VAT, such as postage stamps, financial and property transactions.
Corporation Tax
Limited Companies pay Corporation Tax on its profits. The current rate for small companies is
19%
We are located at:
Steer Acccountancy
Basepoint
Shearway Business Centre
Shearway Road
Folkestone
Kent
CT19 4RH
Contact us today!
Email : If you have any queries or wish to make an appointment, please contact us:
Tel: 01303 316036
enquiries@steeracc.co.uk
Or use our contact us page
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