File: //old_home_backup/answerbag.co.uk/public_html/taxes.html
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html lang="en-GB" xmlns:fb="http://ogp.me/ns/fb#" xmlns:addthis="http://www.addthis.com/help/api-spec" prefix="og: http://ogp.me/ns#">
<head><meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
<meta charset="UTF-8">
<meta name="viewport" content="width=device-width, initial-scale=1" />
<title>Taxes – Answer Bag 2019 </title>
<meta name="robots" content="noodp,noydir"/>
<meta name="description" content="Our consumer guide to taxes provides concise information and instructions, allowing you to file your own taxes without the costly addition of a tax expert."/>
<link rel="canonical" href="http://www.answerbag.co.uk/taxes" />
<meta property="og:locale" content="en_GB" />
<meta property="og:type" content="article" />
<meta property="og:title" content="Taxes – Answer Bag" />
<meta property="og:description" content="Our consumer guide to taxes provides concise information and instructions, allowing you to file your own taxes without the costly addition of a tax expert." />
<meta property="og:url" content="http://www.answerbag.co.uk/taxes" />
<meta property="og:site_name" content="Answer Bag" />
<meta property="og:image" content="http://www.answerbag.co.uk/wp-content/uploads/2013/09/taxes.png" />
<!-- / Yoast WordPress SEO plugin. -->
<link rel='stylesheet' id='monthly-mortgage-css-css' href='../wp-content/plugins/simple-monthly-mortgage-calc/monthly-mortgage-style.css' media='all' />
<link rel='stylesheet' id='totop-css' href='../wp-content/plugins/totop-link/totop-link.css' media='all' />
<link rel='stylesheet' id='output-css' href='../wp-content/plugins/addthis/css/output.css' media='all' />
<link rel='stylesheet' id='usquare-css-css' href='../wp-content/plugins/usquare/css/frontend/usquare_style.css' media='all' />
<link rel='stylesheet' id='customfont1-css' href='../wp-content/plugins/usquare/fonts/ostrich_20sans/stylesheet.css' media='all' />
<link rel='stylesheet' id='customfont2-css' href='../wp-content/plugins/usquare/fonts/PT_20sans/stylesheet.css' media='all' />
<link rel='stylesheet' id='contact-form-7-css' href='../wp-content/plugins/contact-form-7/includes/css/styles.css' media='all' />
<link rel='stylesheet' id='digg-digg-css' href='../wp-content/plugins/digg-digg/css/diggdigg-style.css' media='screen' />
<link rel='stylesheet' id='DOPShortcodesStyleInteractiveElementsIcons-css' href='../wp-content/plugins/dop-shortcodes/assets/gui/css/style-dopshortcodes-interactive-elements-icons.css' media='all' />
<link rel='stylesheet' id='DOPShortcodesStyleSocialIcons-css' href='../wp-content/plugins/dop-shortcodes/assets/gui/css/style-dopshortcodes-social-icons.css' media='all' />
<link rel='stylesheet' id='DOPShortcodesStyle-css' href='../wp-content/plugins/dop-shortcodes/assets/gui/css/style-dopshortcodes.css' media='all' />
<link rel='stylesheet' id='papergrid-css-css' href='../wp-content/plugins/papergrid/css/papergrid-frontend.css' media='all' />
<link rel='stylesheet' id='symple_shortcode_styles-css' href='../wp-content/plugins/symple-shortcodes/includes/css/symple_shortcodes_styles.css' media='all' />
<link rel='stylesheet' id='toggler-style-css' href='../wp-content/plugins/toggler/css/toggler.css' media='all' />
<link rel='stylesheet' id='ubermenu-basic-css' href='../wp-content/plugins/ubermenu/standard/styles/basic.css' media='all' />
<link rel='stylesheet' id='ubermenu-flat-green-css' href='../wp-content/plugins/ubermenu-skins-flat/skins/green.css' media='all' />
<link rel='stylesheet' id='normalize-css' href='../wp-content/themes/consumer/normalize.css' media='all' />
<link rel='stylesheet' id='style-css' href='../wp-content/themes/consumer/style.css' media='all' />
<link rel='stylesheet' id='print-css' href='../wp-content/themes/consumer/print.css' media='print' />
<link rel='stylesheet' id='debt_style-css' href='../wp-content/plugins/debt-calculator/css/debt.css' media='all' />
<link rel='stylesheet' id='page-list-style-css' href='../wp-content/plugins/page-list/css/page-list.css' media='all' />
<link rel='stylesheet' id='zilla-share-css' href='../wp-content/plugins/zilla-share/styles/zilla-share.css' media='all' />
<link rel='stylesheet' id='mr_social_sharing-css' href='../wp-content/plugins/social-sharing-toolkit/style_2.1.2.css' media='all' />
<link rel='stylesheet' id='mr_social_sharing_custom-css' href='../wp-content/uploads/social_sharing_custom.css' media='all' />
<script type='text/javascript' src='../js/jquery.min.js'></script>
<script type='text/javascript'>try{jQuery.noConflict();}catch(e){};</script>
<script type='text/javascript' src='../wp-content/plugins/simple-monthly-mortgage-calc/jquery.validate.js'></script>
<script type='text/javascript' src='../wp-content/plugins/contact-form-7/includes/js/jquery.form.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/simple-monthly-mortgage-calc/monthly-mortgage-actions.js'></script>
<script type='text/javascript' src='../wp-content/plugins/totop-link/totop-link.js'></script>
<script type='text/javascript' src='../wp-content/plugins/usquare/js/frontend/jquery.easing.1.3.js'></script>
<script type='text/javascript' src='../wp-content/plugins/usquare/js/frontend/jquery.usquare.js'></script>
<script type='text/javascript' src='../wp-content/plugins/usquare/js/frontend/jquery.mousewheel.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/usquare/js/frontend/jquery.tinyscrollbar.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/better-wordpress-showhide-elements/showhide.js'></script>
<script type='text/javascript' src='../js/jquery-ui.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/dop-shortcodes/assets/js/jquery.dop.ImageLoader.js'></script>
<script type='text/javascript' src='../wp-content/plugins/toggler/js/toggler.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/debt-calculator/js/calculator.js'></script>
<link rel='stylesheet' id='wop-css' href='../wp-content/plugins/widgets-on-pages/wop.css' type='text/css' media='all' />
<!-- UberMenu CSS - Controlled through UberMenu Options Panel
================================================================ -->
<style type="text/css" id="ubermenu-style-generator-css">
/* Image Text Padding */
#megaMenu .ss-nav-menu-with-img > a > .wpmega-link-title, #megaMenu .ss-nav-menu-with-img > a > .wpmega-link-description, #megaMenu .ss-nav-menu-with-img > a > .wpmega-item-description, #megaMenu .ss-nav-menu-with-img > span.um-anchoremulator > .wpmega-link-title, #megaMenu .ss-nav-menu-with-img > span.um-anchoremulator > .wpmega-link-description, #megaMenu .ss-nav-menu-with-img > span.um-anchoremulator > .wpmega-item-description{
padding-left: 23px;
}
/* Custom Tweaks - UberMenu Style Configuration Settings */
#megaMenu ul.megaMenu > li.menu-item { padding: 0px 10px; }
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item.current-menu-item > a,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item.current-menu-parent > a,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item.current-menu-ancestor > a {
background: none;
}
#megaMenu.wpmega-preset-flat-green {
background: #505050;
}
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item:hover > a,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item > a:hover,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item.megaHover > a,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item:hover > span.um-anchoremulator,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item > span.um-anchoremulator:hover,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item.megaHover > span.um-anchoremulator {
background-color: #39b54a;
}
</style>
<!-- end UberMenu CSS -->
<!--[if lt IE 9]>
<![endif]-->
<link href="http://fonts.googleapis.com/css?family=Open+Sans" rel="stylesheet" type="text/css">
<link href='http://fonts.googleapis.com/css?family=Josefin+Slab' rel='stylesheet' type='text/css'>
<link href='http://fonts.googleapis.com/css?family=Coming+Soon' rel='stylesheet' type='text/css'>
<link href="../css/font-awesome.css" rel="stylesheet">
<!-- BEGIN Tynt Script -->
<script type="text/javascript">
if(document.location.protocol=='http:'){
var Tynt=Tynt||[];Tynt.push('c1QhN2eyyr4559acwqm_6r');
(function(){var s=document.createElement('script');s.async="async";s.type="text/javascript";s.src='http://tcr.tynt.com/ti.js';var h=document.getElementsByTagName('script')[0];h.parentNode.insertBefore(s,h);})();
}
</script>
<!-- END Tynt Script -->
</head>
<body class="page page-id-246 page-parent page-template page-template-template-2-php taxes">
<div class="page-wrapper">
<div class="shadow-wrapper">
<header>
<div class="cookies" style="padding-bottom:4px; margin-top:-1px; width: 100%; height: auto;"><center><font style="font-family:'Open Sans', sans-serif;font-size:12px;">When you visit our website, we may send you a cookie. To learn more, please refer to our <a href="../privacy-policy/">Privacy Policy</a>. By continuing to use our website, you agree to this.</font></center>
</div>
<div class="cookies-mobile" style="padding-bottom:4px; margin-top:-1px; width: 100%; height: auto;"><center><font style="font-family:'Open Sans', sans-serif;font-size:12px;">By continuing, you agree to our <a href="../privacy-policy/">Cookie Policy</a>.</font></center>
</div>
<div class="frame">
<div class="logo"><a href="/"><img src="../wp-content/uploads/2013/10/logo_final.png" alt="" /></a></div>
<!-- search -->
<div class="search-form cf">
<form method="get" action="/" role="search">
<input class="text" type="search" name="s" value="Search" onfocus="if(this.value==this.defaultValue){this.value=''}" onblur="if(!this.value){this.value=this.defaultValue;}" />
<input type="image" src="../wp-content/themes/consumer/i/search-btn.gif" alt="Find" class="btn" />
</form>
</div>
<!-- /search-form -->
</div>
<!-- /frame -->
</header>
<!-- /header -->
<nav class="menu-uber">
<div id="megaMenu" class="megaMenuContainer megaMenu-nojs wpmega-preset-flat-green megaResponsive megaResponsiveToggle wpmega-withjs megaMenuOnHover megaFullWidth megaMenuHorizontal wpmega-noconflict megaMinimizeResiduals megaResetStyles"><div id="megaMenuToggle" class="megaMenuToggle">Menu <span class="megaMenuToggle-icon"></span></div><ul id="megaUber" class="megaMenu"><li id="menu-item-65" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-0 ss-nav-menu-item-depth-0 ss-nav-menu-reg um-flyout-align-center"><a href="/"><span class="wpmega-link-title">Home</span></a></li><li id="menu-item-122" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children mega-with-sub ss-nav-menu-item-1 ss-nav-menu-item-depth-0 ss-nav-menu-reg um-flyout-align-center ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Our Organisation</span></span>
<ul class="sub-menu sub-menu-1">
<li id="menu-item-64" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../about-us/"><span class="wpmega-link-title">About Us</span></a></li><li id="menu-item-54" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../contact-us/"><span class="wpmega-link-title">Contact Us</span></a></li></ul>
</li><li id="menu-item-123" class="menu-item menu-item-type-custom menu-item-object-custom current-menu-ancestor menu-item-has-children mega-with-sub ss-nav-menu-item-2 ss-nav-menu-item-depth-0 ss-nav-menu-mega ss-nav-menu-mega-fullWidth ss-nav-menu-mega-alignCenter ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Advice and Guides</span></span>
<ul class="sub-menu sub-menu-1">
<li id="menu-item-461" class="menu-item menu-item-type-custom menu-item-object-custom current-menu-ancestor current-menu-parent menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Money</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-447" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../credit-cards/"><span class="wpmega-link-title">Credit Cards</span></a></li><li id="menu-item-448" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../debt-management/"><span class="wpmega-link-title">Debt Management</span></a></li><li id="menu-item-453" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../investing/"><span class="wpmega-link-title">Investing</span></a></li><li id="menu-item-459" class="menu-item menu-item-type-post_type menu-item-object-page current-menu-item page_item page-item-246 current_page_item ss-nav-menu-item-depth-2"><a href="../taxes/"><span class="wpmega-link-title">Taxes</span></a></li> </ul>
</li><li id="menu-item-463" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children ss-nav-menu-item-depth-1"><a href="../insurance/"><span class="wpmega-link-title">Insurance</span></a>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-446" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../car-insurance/"><span class="wpmega-link-title">Car Insurance</span></a></li><li id="menu-item-454" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../life-insurance/"><span class="wpmega-link-title">Life Insurance</span></a></li><li id="menu-item-451" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../home-insurance/"><span class="wpmega-link-title">Home Insurance</span></a></li><li id="menu-item-460" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../travel-insurance/"><span class="wpmega-link-title">Travel Insurance</span></a></li> </ul>
</li><li id="menu-item-462" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Loans</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-455" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../loans/mortgages/"><span class="wpmega-link-title">Mortgages</span></a></li><li id="menu-item-768" class="menu-item menu-item-type-custom menu-item-object-custom ss-nav-menu-item-depth-2"><a href="../payday-loans-guide/"><span class="wpmega-link-title">Payday Loans</span></a></li><li id="menu-item-458" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../loans/student-loans/"><span class="wpmega-link-title">Student Loans</span></a></li> </ul>
</li><li id="menu-item-464" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Other</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-449" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../fraud/"><span class="wpmega-link-title">Fraud</span></a></li><li id="menu-item-450" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../gambling/"><span class="wpmega-link-title">Gambling</span></a></li><li id="menu-item-457" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../retirement-planning/"><span class="wpmega-link-title">Retirement Planning</span></a></li> </ul>
</li></ul>
</li><li id="menu-item-203" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children mega-with-sub ss-nav-menu-item-3 ss-nav-menu-item-depth-0 ss-nav-menu-reg um-flyout-align-center ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Industry Insider</span></span>
<ul class="sub-menu sub-menu-1">
<li id="menu-item-57" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../news/"><span class="wpmega-link-title">News and Reports</span></a></li><li id="menu-item-649" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../share-your-story/"><span class="wpmega-link-title">Share Your Story</span></a></li><li id="menu-item-63" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../blog/"><span class="wpmega-link-title">Blog</span></a></li></ul>
</li><li id="menu-item-465" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children mega-with-sub ss-nav-menu-item-4 ss-nav-menu-item-depth-0 ss-nav-menu-mega ss-nav-menu-mega-fullWidth ss-nav-menu-mega-alignCenter ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Tools & Calculators</span></span>
<ul class="sub-menu sub-menu-1">
<li id="menu-item-466" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Credit Card Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-467" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../credit-cards/calculators/credit-card-repayment/"><span class="wpmega-link-title">Credit Card Repayment</span></a></li> </ul>
</li><li id="menu-item-468" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Mortgage Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-469" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../loans/mortgages/calculators/mortgage-repayment/"><span class="wpmega-link-title">Mortgage Repayment</span></a></li> </ul>
</li><li id="menu-item-548" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Debt Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-549" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../debt-management/calculators/debt-repayment/"><span class="wpmega-link-title">Debt Repayment</span></a></li> </ul>
</li><li id="menu-item-550" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Payday Loan Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-551" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../loans/payday-loan/calculators/payday-loan-repayment/"><span class="wpmega-link-title">Payday Loan Repayment</span></a></li> </ul>
</li><li id="menu-item-567" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Car Insurance Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-568" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../car-insurance/calculators/car-cost-calculator/"><span class="wpmega-link-title">Car Cost to Own Calculator</span></a></li> </ul>
</li><li id="menu-item-569" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Investing Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-570" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../investing/calculators/regular-savings-calculator/"><span class="wpmega-link-title">Regular Savings Calculator</span></a></li> </ul>
</li><li id="menu-item-571" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Student Loan Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-572" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../loans/student-loans/calculators/student-loan-repayment/"><span class="wpmega-link-title">Student Loan Repayment Calculator</span></a></li> </ul>
</li></ul>
</li><li id="menu-item-207" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children mega-with-sub ss-nav-menu-item-5 ss-nav-menu-item-depth-0 ss-nav-menu-reg um-flyout-align-center"><a href="#"><span class="wpmega-link-title">Other Resources</span></a>
<ul class="sub-menu sub-menu-1">
<li id="menu-item-59" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../helpful-organisations/"><span class="wpmega-link-title">Helpful Organisations</span></a></li><li id="menu-item-200" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../financial-glossary/"><span class="wpmega-link-title">Financial Glossary</span></a></li><li id="menu-item-694" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../international-scholarship/"><span class="wpmega-link-title">International Scholarship Programme</span></a></li></ul>
</li></ul></div>
</nav>
<div style="clear:both;"></div>
<!-- /menu -->
<div class="columns">
<div class="frame cf">
<div class="path">
<span prefix="v: http://rdf.data-vocabulary.org/#">
<span typeof="v:Breadcrumb"><a href="/" rel="v:url" property="v:title">Home</a></span> > <span typeof="v:Breadcrumb"><span class="breadcrumb_last" property="v:title">Taxes</span></span>
</span></div>
<section class="content content-left"><div class="wrapper">
<div class="page-section">
<h1 class="floatleft">Taxes</h1>
<div style="clear: both;"></div>
<p><img class="alignleft wp-image-258" style="margin-top: 30px; margin-bottom: 32px;" alt="taxes" src="../wp-content/uploads/2013/09/taxes.png" width="135" height="104" /></p>
<p class="page-intro">Taxes are both complicated and ever-present. Fortunately, concise information and instructions allows most Brits to file their own taxes without the costly addition of a tax expert.</p>
</div>
<div class="page-section" id="income-tax"><h2>Income tax</h2><p><img class="alignright size-full wp-image-330" style="padding: 4px; border: 1px solid #cccccc;" alt="tax form" src="../wp-content/uploads/2013/09/tax-form.jpg" width="300" height="199" />As the name suggests, income tax is a tax on a person’s income. You are only taxed on income that is above a certain threshold, known as the personal allowance. If your income is below the personal allowance, you do not have to pay any income tax, but when your income surpasses this amount, your income is taxed according to how much above the personal allowance your income falls.</p>
<p>For 2018-2018 the personal allowance is as follows:</p>
<ul class="star">
<li class="star">Born after 5 April 1948: £9,440.</li>
<li class="star">Born between 6 April 1938 and 5 April 1948: £10,500.</li>
<li class="star">Born before 6 April 1938: £10,660.</li>
</ul>
<p>(These amounts reduce by £1 for every £2 of taxable income above £100,000)</p>
</div><div class="page-section" id="what-income-is-taxable?"><h2>What income is taxable?</h2><p>Forms of taxable income include:</p>
<ul class="checkmark-in">
<li class="checkmark-in">Employment earnings.</li>
<li class="checkmark-in">Self-employment earnings.</li>
<li class="checkmark-in">A majority of pension income.</li>
<li class="checkmark-in">Interest yielded from savings.</li>
<li class="checkmark-in">Dividend earnings.</li>
<li class="checkmark-in">Rental income.</li>
<li class="checkmark-in">Income derived from a trust.</li>
</ul>
</div><div class="page-section" id="what-income-is-non-taxable?"><h2>What income is non-taxable?</h2><p>Forms of non-taxable income include:</p>
<ul class="arrow">
<li class="arrow">Benefits.</li>
<li class="arrow">Income generated from tax exempt accounts.</li>
<li class="arrow">The working tax credit (WTC).</li>
<li class="arrow">Premium bond wins.</li>
</ul>
</div><div class="page-section" id="how-much-income-tax-should-you-pay?"><h2>How much income tax should you pay?</h2><table class="doptable ">
<thead>
<tr>
<th>Taxable Income</th>
<th>Rate of Tax</th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td>0 – £2,790</td>
<td>10% (starting rate for savings only)</td>
</tr>
<tr>
<td>0 – £32,010</td>
<td>20%</td>
</tr>
<tr class="odd">
<td>£32,011 – £150,000</td>
<td>40%</td>
</tr>
<tr>
<td>Over £150,000</td>
<td>45%</td>
</tr>
</tbody>
</table>
</div><div class="page-section" id="how-income-tax-is-paid"><h2>How income tax is paid</h2><p>The majority of Brits pay income tax through the Pay As You Earn (PAYE) system. Your employer or pension provider automatically uses PAYE to take out income tax contributions before they pay your wage or into your pension. If you are self employed or have a high income, you can pay income tax by filling a tax return annually through the self assessment system. If you receive any savings and investment interest, income tax is typically automatically deducted.</p>
<p>For income that hasn’t been taxed, you should contact the <a href="http://www.hmrc.gov.uk/">HMRC</a> for more information.</p>
</div><div class="page-section" id="capital-gains-tax"><h2>Capital gains tax</h2><p>The capital gains tax is a tax on the profit or gain you derive from the sale or disposal of an asset. This includes: sales, gifts, transfers, exchanges, and compensation received from the activity of an asset, e.g. insurance payouts for the destruction of your asset.</p>
<div class="module"><div class="symple-toggle "><h3 class="symple-toggle-trigger">What Assets Are Subject to the Capital Gains Tax?</h3><div class="symple-toggle-container">The majority of assets are subject to the capital gains tax. For more detailed information, view the<a href="http://www.hmrc.gov.uk/cgt/intro/when-to-pay.htm"> HMRC capital gains tax page</a>.</div></div><div class="symple-toggle "><h3 class="symple-toggle-trigger">Annual Tax-Free Allowance</h3><div class="symple-toggle-container">Similar to the income tax personal allowance, if your overall gains for the tax year are above the annual exempt amount, you pay capital gains tax on the excess amount. If your overall gains are below, you do not pay capital gains tax. The annual exempt amount for 2018-2018 is as follows:</p>
<ul class="star">
<li class="star">£10,900 for individuals.</li>
<li class="star">£5,300 for most trustees.</li>
</ul>
<p></div></div><div class="symple-toggle "><h3 class="symple-toggle-trigger">Capital Gains Rate</h3><div class="symple-toggle-container">For 2018-14, the following capital gains tax rates apply:</p>
<ul class="star">
<li class="star">18% or 28% for individuals (depending on income level).</li>
<li class="star">28% for trustees.</li>
<li class="star">10% for gains qualifying for Entrepreneur’s Relief.</li>
</ul>
<p></div></div></p>
</div>
</div><div class="page-section" id="national-insurance-tax"><h2>National insurance tax</h2><p>You pay national insurance contributions to be entitled to certain state benefits, including the state pension.</p>
<p>You are required to pay national insurance if you meet the following conditions:</p>
<ul class="checkmark-in">
<li class="checkmark-in">16 years of age or older.</li>
<li class="checkmark-in">Earning a salary above £149 a week.</li>
<li class="checkmark-in">Earnings a salary over £5,725 a year through self-employment.</li>
</ul>
<p>Employees and employers pay contributions according to a complex classification system based on employment type and income. For further information, view the <a href="http://www.hmrc.gov.uk/ni/intro/basics.htm">HMRC national insurance page</a>.</p>
</div><div class="page-section" id="other-taxes"><h2>Other taxes</h2><p>While the income tax, capital gains tax, and national insurance tax constitute a large component of aggregate tax expenditure, there are other important taxes: the value added tax, the inheritance tax, and the council tax.</p>
<ol class="numbers">
<li>
<p class="number-title">Value Added Tax (VAT)</p>
<p class="body">The VAT is a tax on consumer expenditure that is charged on the majority of business transactions. Certain items qualify for the standard rate of 20%, while other items are only charged a 5% VAT rate or a zero-rate. Examples of items that may have their VAT reduced are:</p>
<ul class="arrow">
<li class="arrow">
<p class="body">Domestic fuel and power.</p>
</li>
<li class="arrow">
<p class="body">Children’s car seats.</p>
</li>
</ul>
<p class="body">Examples of items that may have a zero rate VAT:</p>
<ul class="arrow">
<li class="arrow">
<p class="body">Food (meals in restaurants do not apply).</p>
</li>
<li class="arrow">
<p class="body">Children’s clothing.</p>
</li>
</ul>
</li>
<li>
<p class="number-title">Inheritance Tax</p>
<p class="body">Inheritance tax is a tax that is paid on an estate when somebody dies. It can sometimes also be levied on trusts or gifts made during a person’s lifetime. Often, inheritance tax is waived for estates that fall below the threshold, which is £325,000 in 2018-2018. The standard tax rate is 40% on the amount over the threshold. There is also a reduced rate of 36% charged to estates that have given a charitable donation.</p>
<p class="body">For more detailed information on the inheritance tax, view the <a href="http://www.hmrc.gov.uk/inheritancetax/intro/basics.htm">HMRC inheritance tax page</a>.</p>
</li>
<li>
<p class="number-title">Council Tax</p>
<p class="body">The council tax is a taxation scheme in England, Scotland, and Wales that funds services provided by the local government. The tax is based on the value of your residential property.</p>
<p class="body">For more detailed information on calculating your specific council tax, view the <a href="https://www.gov.uk/council-tax/working-out-your-council-tax">Gov.UK council tax page</a>.</p>
</li>
</ol>
</div>
<!-- /frame -->
<!-- /content -->
</div></section>
<!-- /content -->
<aside class="sidebar sidebar-right sticky">
<div class="on-this-page">
<h4>ON THIS PAGE</h4>
<div class="page-menu">
<ul>
<li class="list-arrow"><a href="#income-tax">Income tax</a></li><li class="list-arrow"><a href="#what-income-is-taxable?">What income is taxable?</a></li><li class="list-arrow"><a href="#what-income-is-non-taxable?">What income is non-taxable?</a></li><li class="list-arrow"><a href="#how-much-income-tax-should-you-pay?">How much income tax should you pay?</a></li><li class="list-arrow"><a href="#how-income-tax-is-paid">How income tax is paid</a></li><li class="list-arrow"><a href="#capital-gains-tax">Capital gains tax</a></li><li class="list-arrow"><a href="#national-insurance-tax">National insurance tax</a></li><li class="list-arrow"><a href="#other-taxes">Other taxes</a></li>
</ul>
</div>
<!-- /page-menu -->
</div>
<!-- /on-this-page -->
<div class="widgets">
<div id="text-25" class="widget-1 widget-first widget-odd sidebar-green widget widget_text"><h4>Related Articles</h4> <div class="textwidget">
<!-- Page-list plugin v.4.2 wordpress.org/plugins/page-list/ -->
<ul class="page-list ">
<li class="page_item page-item-487"><a href="../taxes/guides/25-ways-save-taxes/">25 ways to save on your taxes</a></li>
<li class="page_item page-item-593"><a href="../taxes/guides/common-tax-errors-may-get-audited/">Common tax errors that may get you audited</a></li>
<li class="page_item page-item-599"><a href="../taxes/guides/use-online-tax-software-hire-accountant/">Should I use online tax software or hire an accountant?</a></li>
<li class="page_item page-item-471"><a href="../taxes/guides/need-know-tax-enquiries/">What you need to know about tax enquiries</a></li>
</ul></div>
</div><div id="text-36" class="widget-2 widget-last widget-even sidebar-red widget widget_text"><h4>Calculators</h4> <div class="textwidget">
<!-- Page-list plugin v.4.2 wordpress.org/plugins/page-list/ -->
<!-- no pages to show --></div>
</div> </div>
<!-- /widgets -->
<div class="share-this-page">
<h4>SHARE THIS PAGE</h4>
<div class="addthis_toolbox addthis_default_style">
<div class="zilla-share"><a href="https://twitter.com/share" class="twitter-share-button" data-via="Answerbag" data-count="horizontal">Tweet</a><div class="fb-like" data-send="false" data-show-faces="false" data-layout="button_count"></div><div class="g-plusone" data-size="medium"></div></div>
</div>
</div>
</aside>
<!-- /sidebar -->
</div>
<!-- /frame -->
</div>
<!-- /columns -->
<div class="push"></div>
<!-- /page-wrapper -->
<footer>
<div class="footer-columns">
<div class="footer-left">
<ul>
<li id="footer-link1"><a href="../about-us/">About us</a></li>
<li id="footer-link2"><a href="../contact-us/">Contact us</a></li>
<li id="footer-link3"><a href="../news-and-reports/">News</a></li>
<li id="footer-link4"><a href="../terms-and-conditions/">Terms & conditions</a></li>
<li id="footer-link5" class="last"><a href="../privacy-policy/">Privacy & cookies</a></li>
</ul>
</div>
<div class="footer-right"><small>© Answer Bag 2019. Answer Bank: St Mary's Parsonage, Manchester M3 2WJ Tel: <a href="tel:0161 832 69444">0161 832 69444</a></small></div>
</div>
<!-- /footer-columns -->
<!-- /frame -->
</footer>
</div>
</div>
<a id="toTop" title="Return to Top ▲" class="totop-br totop-custom" rel=""><img src="../wp-content/themes/consumer/i/icon_top.png" alt="Return to Top ▲" title="Return to Top ▲" width="40" height="40" /><span>Return to Top ▲</span></a> <script type="text/javascript">function showhide_toggle(a,b,c,d){var e=jQuery("#"+a+"-link-"+b),f=jQuery("#"+a+"-content-"+b);a=jQuery("#"+a+"-toggle-"+b);e.toggleClass("sh-show sh-hide");f.toggleClass("sh-show sh-hide").toggle();a.text()===c?a.text(d):a.text(c)};</script>
<!-- Zilla Share Scripts -->
<script>!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs");</script><div id="fb-root"></div><script>(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src = "//connect.facebook.net/en_GB/all.js#xfbml=1";
fjs.parentNode.insertBefore(js, fjs);
}(document, "script", "facebook-jssdk"));</script><script type="text/javascript">
(function() {
var po = document.createElement("script"); po.type = "text/javascript"; po.async = true;
po.src = "https://apis.google.com/js/plusone.js";
var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(po, s);
})();
</script><script type="text/javascript">if (typeof(addthis_share) == "undefined"){ addthis_share = {"url_transforms":{"shorten":{"twitter":"bitly"}},"shorteners":{"bitly":""}};}
var addthis_options = "facebook_like,twitthis,google_plusone";
var addthis_config = {"data_track_clickback":false,"data_track_addressbar":false,"data_track_textcopy":false,"ui_atversion":"300"};
var addthis_product = 'wpp';
</script><script type="text/javascript" src="../js/addthis_widget.js"></script><script type='text/javascript'>
/* <![CDATA[ */
var uberMenuSettings = {"speed":"300","trigger":"hover","orientation":"horizontal","transition":"slide","hoverInterval":"20","hoverTimeout":"400","removeConflicts":"on","autoAlign":"off","noconflict":"off","fullWidthSubs":"off","androidClick":"off","iOScloseButton":"on","loadGoogleMaps":"off","repositionOnLoad":"off"};
/* ]]> */
</script>
<script type='text/javascript' src='../wp-content/plugins/ubermenu/core/js/ubermenu.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/social-sharing-toolkit/includes/buttons/button.facebook.js'></script>
<script type='text/javascript' src='../js/all.js'></script>
<script type='text/javascript' src='../js/widgets.js'></script>
<script type='text/javascript' src='../wp-content/plugins/social-sharing-toolkit/includes/buttons/button.googleplus.js'></script>
<script type='text/javascript' src='../js/in.js'></script>
<script type='text/javascript' src='../js/pinit.js'></script>
<script type='text/javascript' src='../wp-content/plugins/symple-shortcodes/includes/js/symple_toggle.js'></script>
<!--wp_footer-->
<script type="text/javascript" src="../wp-content/themes/consumer/includes/init.js"></script>
<script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','//www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87138559-1, 'answerbag.co.uk');
ga('send', 'pageview');
</script>
<script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','https://www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87138559-1', 'auto');
ga('send', 'pageview');
</script></body>
</html>