These are benefits with a money value which employees and directors may receive as a result of their employment but which are not included in their weekly/monthly salary or wages. Often referred to as "perks", the more common benefits include company cars, fuel, private medical insurance and cheap or interest free loans from the employer. Whether the benefit is taxable or not will depend on both the type of benefit and the level of income of the employee.
Tax Calculator will give you an indication of how much income tax you should be paying on your income. The calculations are based on the Inland Revenue rates for the tax year 2010/2011 and designed to provide you with accurate figures from the information entered.
In addition to the individual personal allowances available, there are further tax allowances for both individuals and married couples who are 65 and over. These are known as the higher age allowances. Also there is a blind persons allowance for certified and registered blind persons. See Tax Glossary for further explanation.
These additional allowances can be taken into account in the calculation by ticking the relevant box below during your tax calculation. The other allowances include student loans, blind persons allowance and no NI calculations. If you would like to see how your pension contribution compares to the average you can do so on the average pension contribution page.
The UK tax year operates from 6th April to the 5th April the following year and not the calendar year January to December. Therefore for a monthly payroll, April would be month 1 and March would be month 12.
Almost everyone who lives in the UK is entitled to the individual personal allowance. This is the amount of income you can receive each tax year before having to pay income tax.
Is available to individuals 65 and over but is restricted and reduced when total income exceeds certain threshold limits.
The Government encourages tax payers to save for retirement by giving tax relief on pension contributions. Higher rate tax payers who make personal contributions into pension schemes should check they are receiving the correct tax relief,as personal contributions are usually paid net of basic rate tax. See our figures on average pension contribution figures by salary
If you are certified blind and are on a local authority register of blind persons, or if you live in Scotland or Northern
Ireland and are unable to perform any work for which eyesight is essential, you can claim Blind Person's Allowance.
If you can't use up some or all of your allowance you may be able to transfer it.
The age related married couples allowance is an additional allowance available for married couples or civil partnership where the elder partner was born before 6th April 1935. The amount of allowance will depend on the couples combined total taxable income. The allowance is flexible and can be transferred between spouses or civil partners to maximise the overall tax benefit.