The
tax year starts on 6th April of one year and
ends on 5th April of the next
Everyone
is entitled to a tax-free Personal allowance
and the amount you get depends on the following
factors:
There
are three levels of Personal allowance:
- Basic
amount £4,385
- Age
65-74 £5,720
- Age
75 and over £5,980
If you are earning above your allocated personal
allowance you have to pay the following rates
of tax:
| Starting
rate |
10% |
Up
to £1500 |
| Basic
rate |
22% |
£1501
to £28,000 |
| Higher
rate |
40% |
Over £28,000 |
|
