The single person's income tax allowance for the year to 5th April 2008/2009 is £5,435 (2007/2008 - £5,225). If your total income is less than this during the tax year then there's no tax to pay. Neither should you have to pay tax on interest on your savings. So if you're on a low income then your bank can provide you with Inland Revenue form R85 to apply for your interest to be paid gross.

Income tax bands 2007-2009

2008-2009 2007-2008
Rate Band (£) Band (£)
Starting rate 10% No Longer Applicable 2,230
Basic rate 20% 36,000 2,231-34,600 (22%)
Higher rate 40% Over 36,000 Over 34,600

The self-employed can claim business expenses against their income. So make sure you include all possible justifiable business expenses on your self-assessment form.

You may be able to pay further contributions to your pension, which can soak up some unused tax relief. One other point to remember, if one spouse is a tax payer and the other is not it is worth considering switching some investments to take advantage of their unused tax allowances.

<< back

Income Tax

Home.
About Us.
Mortgages.
Life Assurance.
General Insurance.
Health Insurance.
Pension Planning.
Corporate Insurance.
Savings & Investments.
Taxation.
Privacy.
Useful Links.
image accompanying the enquiries link enquiries image accompanying the calculators link calculators image accompanying the Jargon buster link jargon buster image accompanying the contact us link contact us
South West Financial Planning logoSouth West Financial Planning Ltd
Home menu seperator About Us menu seperator Mortgages menu seperator Life menu seperator General menu seperator Health menu seperator Investments menu seperator Planning menu seperator Corporate menu seperator Tax menu seperator Site Map
Registered company address:
122 Boutport Street | Barnstaple | Devon | England | EX31 1TD | Registered in England, No:04320209 |

South West Financial Planning Ltd is An Appointed Representative of Sage Financial Services Ltd., which is authorised and regulated by the Financial Services Authority.
SAGE FINANCIAL SERVICES LTD is entered on the FSA register (www.fsa.gov.uk/register/) under reference 150452
The FSA do not regulate some forms of mortgages or inheritance tax planning.
The advice and / or guidance contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.