Income tax - Revision history

Designing Buildings at 08:16, 18 February 2021

2021-02-18T08:16:58Z

← Older revision		Revision as of 08:16, 18 February 2021
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	* VAT		* VAT

−	[[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Designing Buildings at 13:50, 14 October 2019

2019-10-14T13:50:04Z

← Older revision		Revision as of 13:50, 14 October 2019
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	[[File:Calculator_posterised.jpg\|link=File:Calculator_posterised.jpg]]		[[File:Calculator_posterised.jpg\|link=File:Calculator_posterised.jpg]]

−	~~= Introduction =~~	+	Income tax is a compulsory deduction taken by the government from the earnings of individuals.
−		+
−	Income tax is a compulsory deduction taken by the government from the earnings of individuals~~, companies and organisations~~. ~~The monies collected help to strengthen the government’s finances as it uses these funds for strategic sectors such as health, education, transport, housing, defence and other areas.~~	+
−		+
−	The government is not the only institution that can deduct tax: banks can deduct tax on savings interest earned, companies can make deductions from share dividends, and shops, banks and financial institutions can deduct VAT from purchases. These deductions however are always made on behalf of the government which eventually receives the money.	+
−		+
−	~~= Income on which individuals pay tax =~~	+

	Individuals pay tax on their income but some types of income may be exempt.		Individuals pay tax on their income but some types of income may be exempt.
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	The majority of people pay income tax through a system called PAYE (Pay As You Earn) which is used by employers and pension providers to deduct tax and National Insurance Contributions (NIC) directly out of wages and pensions. It is an automatic process and spares many people the complexity of calculating what their tax should be.		The majority of people pay income tax through a system called PAYE (Pay As You Earn) which is used by employers and pension providers to deduct tax and National Insurance Contributions (NIC) directly out of wages and pensions. It is an automatic process and spares many people the complexity of calculating what their tax should be.
−
−	Small businesses, companies, academic institutions and other organisations must also pay tax on their income. If in one year they have not made any profit, little or no tax will be payable for that year.

	For more information on the main types of tax, see [[Taxation_in_building_design_and_construction\|Taxation in building design and construction]] on Designing Buildings Wiki.		For more information on the main types of tax, see [[Taxation_in_building_design_and_construction\|Taxation in building design and construction]] on Designing Buildings Wiki.
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	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

−	* A brief guide to UK construction laws.
	* Business rates.		* Business rates.
−	* Capital.
−	* Capital gain.
	* Capital gains tax.		* Capital gains tax.
	* Capital allowances.		* Capital allowances.
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	* PAYE.		* PAYE.
	* Stamp duty.		* Stamp duty.
		+	* Tax.
	* Tax relief.		* Tax relief.
	* VAT		* VAT

	[[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]		[[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Designing Buildings at 13:46, 14 October 2019

2019-10-14T13:46:10Z

← Older revision		Revision as of 13:46, 14 October 2019
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	= Introduction =		= Introduction =

−	Income tax is a compulsory deduction taken by the government from the earnings of individuals, companies and organisations. The monies collected help to strengthen the government’s finances as it ~~relocates~~ these funds ~~to reinforce nationally~~ strategic sectors such as health, education, transport, housing, defence and other areas.	+	Income tax is a compulsory deduction taken by the government from the earnings of individuals, companies and organisations. The monies collected help to strengthen the government’s finances as it uses these funds for strategic sectors such as health, education, transport, housing, defence and other areas.

	The government is not the only institution that can deduct tax: banks can deduct tax on savings interest earned, companies can make deductions from share dividends, and shops, banks and financial institutions can deduct VAT from purchases. These deductions however are always made on behalf of the government which eventually receives the money.		The government is not the only institution that can deduct tax: banks can deduct tax on savings interest earned, companies can make deductions from share dividends, and shops, banks and financial institutions can deduct VAT from purchases. These deductions however are always made on behalf of the government which eventually receives the money.

−	=== Income on which individuals pay tax ===	+	= Income on which individuals pay tax =

−	Individuals pay tax on their income but some types of income may be exempt. Tax is payable on the following types of income:	+	Individuals pay tax on their income but some types of income may be exempt.
		+
		+	Tax is payable on the following types of income:

	* Earnings from employment;		* Earnings from employment;
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	* Interest on savings over the stipulated savings allowance.		* Interest on savings over the stipulated savings allowance.

−	~~===~~ As at 2019, income tax is not payable on: ~~===~~	+	As at 2019, income tax is not payable on:

	* A limited amount of income from self-employment - this is the ‘trading allowance’.		* A limited amount of income from self-employment - this is the ‘trading allowance’.
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	Most people in the UK get a 'personal allowance' of tax-free income. This is the part of their income which they do not have to pay tax on.		Most people in the UK get a 'personal allowance' of tax-free income. This is the part of their income which they do not have to pay tax on.

−	The majority of people pay income tax through a system called PAYE (Pay As You Earn) which is used by employers and pension providers to deduct tax and National Insurance Contributions (NIC) directly out of wages and pensions. It is an automatic process and spares many people~~, especially those on lower incomes,~~ the complexity of calculating what their tax should be.	+	The majority of people pay income tax through a system called PAYE (Pay As You Earn) which is used by employers and pension providers to deduct tax and National Insurance Contributions (NIC) directly out of wages and pensions. It is an automatic process and spares many people the complexity of calculating what their tax should be.

	Small businesses, companies, academic institutions and other organisations must also pay tax on their income. If in one year they have not made any profit, little or no tax will be payable for that year.		Small businesses, companies, academic institutions and other organisations must also pay tax on their income. If in one year they have not made any profit, little or no tax will be payable for that year.

Editor at 18:26, 26 September 2019

2019-09-26T18:26:21Z

← Older revision		Revision as of 18:26, 26 September 2019
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	* Tax relief.		* Tax relief.
	* VAT		* VAT
−
−	~~= External references =~~
−
−	* Capital Gains Tax.

	[[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]		[[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Editor at 18:25, 26 September 2019

2019-09-26T18:25:50Z

← Older revision		Revision as of 18:25, 26 September 2019
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	* Capital Gains Tax.		* Capital Gains Tax.
−	* Capital Gains Tax on Personal possessions
−	* HMRC Capital Gains Tax.
−	* Income tax.
−	* Private Residence Relief.

	[[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]		[[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Editor at 18:25, 26 September 2019

2019-09-26T18:25:01Z

← Older revision		Revision as of 18:25, 26 September 2019
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	[[File:Calculator_posterised.jpg\|link=File:Calculator_posterised.jpg]]		[[File:Calculator_posterised.jpg\|link=File:Calculator_posterised.jpg]]
		+
		+	= Introduction =

	Income tax is a compulsory deduction taken by the government from the earnings of individuals, companies and organisations. The monies collected help to strengthen the government’s finances as it relocates these funds to reinforce nationally strategic sectors such as health, education, transport, housing, defence and other areas.		Income tax is a compulsory deduction taken by the government from the earnings of individuals, companies and organisations. The monies collected help to strengthen the government’s finances as it relocates these funds to reinforce nationally strategic sectors such as health, education, transport, housing, defence and other areas.

Editor at 18:24, 26 September 2019

2019-09-26T18:24:34Z

← Older revision		Revision as of 18:24, 26 September 2019
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	The government is not the only institution that can deduct tax: banks can deduct tax on savings interest earned, companies can make deductions from share dividends, and shops, banks and financial institutions can deduct VAT from purchases. These deductions however are always made on behalf of the government which eventually receives the money.		The government is not the only institution that can deduct tax: banks can deduct tax on savings interest earned, companies can make deductions from share dividends, and shops, banks and financial institutions can deduct VAT from purchases. These deductions however are always made on behalf of the government which eventually receives the money.

−	Income on which individuals pay tax	+	=== Income on which individuals pay tax ===

	Individuals pay tax on their income but some types of income may be exempt. Tax is payable on the following types of income:		Individuals pay tax on their income but some types of income may be exempt. Tax is payable on the following types of income:

Editor at 18:23, 26 September 2019

2019-09-26T18:23:29Z

← Older revision		Revision as of 18:23, 26 September 2019
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−	[[File:~~Calculator posterised~~.jpg]]	+	[[File:Calculator_posterised.jpg\|link=File:Calculator_posterised.jpg]]

	Income tax is a compulsory deduction taken by the government from the earnings of individuals, companies and organisations. The monies collected help to strengthen the government’s finances as it relocates these funds to reinforce nationally strategic sectors such as health, education, transport, housing, defence and other areas.		Income tax is a compulsory deduction taken by the government from the earnings of individuals, companies and organisations. The monies collected help to strengthen the government’s finances as it relocates these funds to reinforce nationally strategic sectors such as health, education, transport, housing, defence and other areas.
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	For more information on the main types of tax, see [[Taxation_in_building_design_and_construction\|Taxation in building design and construction]] on Designing Buildings Wiki.		For more information on the main types of tax, see [[Taxation_in_building_design_and_construction\|Taxation in building design and construction]] on Designing Buildings Wiki.

−	Related articles on Designing Buildings Wiki	+	= Related articles on Designing Buildings Wiki =

	* A brief guide to UK construction laws.		* A brief guide to UK construction laws.

Editor: Created page with "File:Calculator posterised.jpg Income tax is a compulsory deduction taken by the government from the earnings of individuals, companies and organisations. The monies collect..."

2019-09-26T18:22:46Z

Created page with "File:Calculator posterised.jpg Income tax is a compulsory deduction taken by the government from the earnings of individuals, companies and organisations. The monies collect..."

New page

[[File:Calculator posterised.jpg]]

Income tax is a compulsory deduction taken by the government from the earnings of individuals, companies and organisations. The monies collected help to strengthen the government’s finances as it relocates these funds to reinforce nationally strategic sectors such as health, education, transport, housing, defence and other areas.

The government is not the only institution that can deduct tax: banks can deduct tax on savings interest earned, companies can make deductions from share dividends, and shops, banks and financial institutions can deduct VAT from purchases. These deductions however are always made on behalf of the government which eventually receives the money.

Income on which individuals pay tax

Individuals pay tax on their income but some types of income may be exempt. Tax is payable on the following types of income:

* Earnings from employment;
* Profits made through being self-employed;
* Some state benefits;
* Most pensions, including state pensions, company and personal pensions and retirement annuities;
* Rental income (although this may not apply in some cases of being a ‘live-in’ landlord);
* Job-related benefits, eg a company car, lunch allowance etc;
* Income from a trust, and
* Interest on savings over the stipulated savings allowance.

=== As at 2019, income tax is not payable on: ===

* A limited amount of income from self-employment - this is the ‘trading allowance’.
* A limited amount of rental income from property (unless the Rent-a-Room Scheme is being used).
* Income from tax-exempt accounts, e.g Individual Savings Accounts (ISAs) and National Savings Certificates.
* Dividends from company shares under a dividends’ allowance.
* Some state benefits.
* Money won on premium bonds, the National Lottery or the Health Lottery.
* Rent an individual receives from a lodger in their house that is below the Rent-a-Room limit and
* Income Tax allowances and reliefs.

Most people in the UK get a 'personal allowance' of tax-free income. This is the part of their income which they do not have to pay tax on.

The majority of people pay income tax through a system called PAYE (Pay As You Earn) which is used by employers and pension providers to deduct tax and National Insurance Contributions (NIC) directly out of wages and pensions. It is an automatic process and spares many people, especially those on lower incomes, the complexity of calculating what their tax should be.

Small businesses, companies, academic institutions and other organisations must also pay tax on their income. If in one year they have not made any profit, little or no tax will be payable for that year.

For more information on the main types of tax, see [[Taxation_in_building_design_and_construction|Taxation in building design and construction]] on Designing Buildings Wiki.

Related articles on Designing Buildings Wiki

* A brief guide to UK construction laws.
* Business rates.
* Capital.
* Capital gain.
* Capital gains tax.
* Capital allowances.
* Industrial buildings allowance (IBA)
* Landfill tax.
* PAYE.
* Stamp duty.
* Tax relief.
* VAT

= External references =

* Capital Gains Tax.
* Capital Gains Tax on Personal possessions
* HMRC Capital Gains Tax.
* Income tax.
* Private Residence Relief.

[[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]