{"id":175,"date":"2016-06-16T12:51:00","date_gmt":"2016-06-16T11:51:00","guid":{"rendered":"https:\/\/www.thetrainingplace.org\/blog\/2016\/06\/16\/personal-tax-part-1\/"},"modified":"2016-06-16T12:51:00","modified_gmt":"2016-06-16T11:51:00","slug":"personal-tax-part-1","status":"publish","type":"post","link":"https:\/\/www.thetrainingplace.org\/blog\/2016\/06\/personal-tax-part-1\/","title":{"rendered":"PERSONAL TAX PART 1"},"content":{"rendered":"<div>\n<\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Income<br \/>\ntax is tax charged on income earned by individuals and it\u2019s used by the<br \/>\ngovernment to run and maintain the state. <o:p><\/o:p><\/span><\/div>\n<div>\n<\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">The<br \/>\ngovernment tax year starts on 6<sup>th <\/sup>April to 5<sup>th<\/sup> April the<br \/>\nfollowing year, so we have just come to the end of 2015\/16 tax year and started<br \/>\n2016\/17 tax year. <o:p><\/o:p><\/span><\/div>\n<div>\n<\/div>\n<table border=\"1\" cellpadding=\"0\" cellspacing=\"0\" style=\"border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184;\">\n<tbody>\n<tr>\n<td style=\"border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 62.1pt;\" valign=\"top\" width=\"83\">\n<div align=\"center\" style=\"text-align: center;\">\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Tax year<o:p><\/o:p><\/span><\/b><\/div>\n<\/td>\n<td style=\"border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 163.05pt;\" valign=\"top\" width=\"217\">\n<div align=\"center\" style=\"text-align: center;\">\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Tax period<o:p><\/o:p><\/span><\/b><\/div>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 62.1pt;\" valign=\"top\" width=\"83\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">2015\/16<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 163.05pt;\" valign=\"top\" width=\"217\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">6<br \/>\n  April 2015 to 5 April 2016<o:p><\/o:p><\/span><\/div>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 62.1pt;\" valign=\"top\" width=\"83\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">2016\/17<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 163.05pt;\" valign=\"top\" width=\"217\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">6<br \/>\n  April 2016 to 5 April 2017<o:p><\/o:p><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div>\n<\/div>\n<div>\n<a href=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEjuv1P_DU67Bnzfyk_cOSegIf0ZYG71xrmwMd8eq0AQeACJU4CXufY__0TypCEttYRBE_yLX4XW-0wKR9g_IpR5lbDx7zSLXxo9vDxRp2bKC5bHuf8JS4uc0nSgfa65BhT5d3-r6rAJODY\/s1600\/image+26.jpg\" style=\"clear: right; float: right; margin-bottom: 1em; margin-left: 1em;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"177\" src=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEjuv1P_DU67Bnzfyk_cOSegIf0ZYG71xrmwMd8eq0AQeACJU4CXufY__0TypCEttYRBE_yLX4XW-0wKR9g_IpR5lbDx7zSLXxo9vDxRp2bKC5bHuf8JS4uc0nSgfa65BhT5d3-r6rAJODY\/s320\/image+26.jpg\" width=\"320\" \/><\/a><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Since<br \/>\nwe have recently come to the end of 2015\/16, we want to use this article to<br \/>\nillustrate the income tax calculation for an individual in 2015\/16 and we will<br \/>\naim at writing another article in the next edition of this magazine showing the<br \/>\ndifference in tax calculation for 2016\/17, so please look out for the next<br \/>\nedition.<o:p><\/o:p><\/span><\/div>\n<div>\n<\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">From<br \/>\nthe total income earned by an individual, personal allowance is deducted to<br \/>\narrive at the <b>taxable income<\/b>. The<br \/>\npersonal allowance for 2015\/16 is <b>\u00a310,600<\/b>,<br \/>\nwhich could vary depending on the individual\u2019s circumstances and income level. <o:p><\/o:p><\/span><\/div>\n<div>\n<\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">The<br \/>\ntaxable income is subjected to different tax rates which range from 0% up to 45%<br \/>\non different parts of the income. The tax rates and income brackets are shown below<br \/>\nfor different types of income an individual could earn.<o:p><\/o:p><\/span><\/div>\n<div>\n<\/div>\n<div>\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">2015\/16 Tax Year<o:p><\/o:p><\/span><\/b><br \/>\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\"><br \/><\/span><\/b><\/div>\n<div>\n<table border=\"1\" cellpadding=\"0\" cellspacing=\"0\" style=\"border-collapse: collapse; border: none; margin-left: -8.8pt; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-table-layout-alt: fixed; mso-yfti-tbllook: 1184; width: 578px;\">\n<tbody>\n<tr style=\"height: 20.65pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;\">\n<td style=\"border: solid windowtext 1.0pt; height: 20.65pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 80.6pt;\" valign=\"top\" width=\"107\">\n<div>\n<\/div>\n<\/td>\n<td style=\"border-left: none; border: solid windowtext 1.0pt; height: 20.65pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 105.3pt;\" valign=\"top\" width=\"140\">\n<div align=\"center\" style=\"text-align: center;\">\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;;\">Income<br \/>\n  brackets<o:p><\/o:p><\/span><\/b><\/div>\n<\/td>\n<td style=\"border-left: none; border: solid windowtext 1.0pt; height: 20.65pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 93.0pt;\" valign=\"top\" width=\"124\">\n<div align=\"center\" style=\"text-align: center;\">\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;;\">Non-investment<br \/>\n  income<\/span><\/b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;;\"><o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-left: none; border: solid windowtext 1.0pt; height: 20.65pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 49.55pt;\" valign=\"top\" width=\"66\">\n<div align=\"center\" style=\"text-align: center;\">\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;;\">Savings<br \/>\n  income <\/span><\/b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;;\"><o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-left: none; border: solid windowtext 1.0pt; height: 20.65pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 55.75pt;\" valign=\"top\" width=\"74\">\n<div align=\"center\" style=\"text-align: center;\">\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;;\">Dividends<br \/>\n  income<o:p><\/o:p><\/span><\/b><\/div>\n<\/td>\n<td style=\"border-left: none; border: solid windowtext 1.0pt; height: 20.65pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 49.55pt;\" valign=\"top\" width=\"66\">\n<div align=\"center\" style=\"text-align: center;\">\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;;\">Capital<br \/>\n  Gains<o:p><\/o:p><\/span><\/b><\/div>\n<\/td>\n<\/tr>\n<tr style=\"height: 10.95pt; mso-yfti-irow: 1;\">\n<td style=\"border-top: none; border: solid windowtext 1.0pt; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 80.6pt;\" valign=\"top\" width=\"107\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Starting<br \/>\n  rate<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 105.3pt;\" valign=\"top\" width=\"140\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">\u00a30<br \/>\n  &#8211; \u00a35,000<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 93.0pt;\" valign=\"top\" width=\"124\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">&#8211;<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 49.55pt;\" valign=\"top\" width=\"66\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">0%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 55.75pt;\" valign=\"top\" width=\"74\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">&#8211;<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 49.55pt;\" valign=\"top\" width=\"66\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">&#8211;<o:p><\/o:p><\/span><\/div>\n<\/td>\n<\/tr>\n<tr style=\"height: 10.95pt; mso-yfti-irow: 2;\">\n<td style=\"border-top: none; border: solid windowtext 1.0pt; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 80.6pt;\" valign=\"top\" width=\"107\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Basic<br \/>\n  rate<b><o:p><\/o:p><\/b><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 105.3pt;\" valign=\"top\" width=\"140\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">\u00a30<br \/>\n  &#8211; \u00a331,785<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 93.0pt;\" valign=\"top\" width=\"124\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">20%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 49.55pt;\" valign=\"top\" width=\"66\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">20%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 55.75pt;\" valign=\"top\" width=\"74\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">10%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 49.55pt;\" valign=\"top\" width=\"66\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">18%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<\/tr>\n<tr style=\"height: 10.95pt; mso-yfti-irow: 3;\">\n<td style=\"border-top: none; border: solid windowtext 1.0pt; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 80.6pt;\" valign=\"top\" width=\"107\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Higher<br \/>\n  rate<b><o:p><\/o:p><\/b><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 105.3pt;\" valign=\"top\" width=\"140\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">\u00a331,786<br \/>\n  &#8211; \u00a3150,000<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 93.0pt;\" valign=\"top\" width=\"124\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">40%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 49.55pt;\" valign=\"top\" width=\"66\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">40%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 55.75pt;\" valign=\"top\" width=\"74\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">32.5%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 10.95pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 49.55pt;\" valign=\"top\" width=\"66\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">28%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<\/tr>\n<tr style=\"height: 11.55pt; mso-yfti-irow: 4; mso-yfti-lastrow: yes;\">\n<td style=\"border-top: none; border: solid windowtext 1.0pt; height: 11.55pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 80.6pt;\" valign=\"top\" width=\"107\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Additional<br \/>\n  rate<b><o:p><\/o:p><\/b><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 11.55pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 105.3pt;\" valign=\"top\" width=\"140\">\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Over<br \/>\n  \u00a3150,000<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 11.55pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 93.0pt;\" valign=\"top\" width=\"124\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">45%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 11.55pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 49.55pt;\" valign=\"top\" width=\"66\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">45%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 11.55pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 55.75pt;\" valign=\"top\" width=\"74\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">37.5%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 11.55pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 49.55pt;\" valign=\"top\" width=\"66\">\n<div align=\"center\" style=\"text-align: center;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">28%<o:p><\/o:p><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\"><br \/><\/span><br \/>\n<span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\">The<br \/>\nabove means that for non-investment income such as employment income, you pay<br \/>\n20% tax on any taxable income (amount after deducting personal allowance) up to<br \/>\n\u00a331,785 and if the persons taxable income is more than that, then the<br \/>\ndifference up to \u00a3150,000 will then be subject to 40% and then any amount over<br \/>\n\u00a3150,000 will be subject to 45%.<\/span><\/div>\n<div>\n<\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">We<br \/>\nwill now use an illustration to demonstrate the computation of income tax for<br \/>\nan individual.<o:p><\/o:p><\/span><\/div>\n<div>\n<\/div>\n<div style=\"border: solid #7030A0 1.5pt; mso-element: para-border-div; padding: 1.0pt 4.0pt 1.0pt 4.0pt;\">\n<div style=\"border: none; mso-border-alt: solid #7030A0 1.5pt; mso-padding-alt: 1.0pt 4.0pt 1.0pt 4.0pt; padding: 0cm;\">\n<\/div>\n<div style=\"border: none; mso-border-alt: solid #7030A0 1.5pt; mso-padding-alt: 1.0pt 4.0pt 1.0pt 4.0pt; padding: 0cm;\">\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Illustration:<o:p><\/o:p><\/span><\/b><\/div>\n<div style=\"border: none; mso-border-alt: solid #7030A0 1.5pt; mso-padding-alt: 1.0pt 4.0pt 1.0pt 4.0pt; padding: 0cm;\">\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Thomas Bamqual, is 42 years old and he<br \/>\nhas employment income of \u00a343,000; interest received from a building society<br \/>\nsavings account of \u00a31,900; dividends received of \u00a31,683; taxable gains from the<br \/>\nsale of a garage property of \u00a320,100 (after deducting the annual exemption);<br \/>\ninterest received from an ISA account of \u00a3800 and he made gift-aid<br \/>\ncontributions of \u00a3960 through the year. What will be the tax liability?<o:p><\/o:p><\/span><\/div>\n<div style=\"border: none; mso-border-alt: solid #7030A0 1.5pt; mso-padding-alt: 1.0pt 4.0pt 1.0pt 4.0pt; padding: 0cm;\">\n<\/div>\n<\/div>\n<div>\n<\/div>\n<div>\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Solution:<o:p><\/o:p><\/span><\/b><\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">**You<br \/>\nwill need to bear in mind that:<o:p><\/o:p><\/span><br \/>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\"><br \/><\/span><\/div>\n<div>\n<div style=\"margin-bottom: 0.0001pt; text-indent: -18pt;\">\n<span style=\"font-family: &quot;symbol&quot;; font-size: 13.5pt;\"><span style=\"font-size: 18px; font-stretch: normal;\">&nbsp; &nbsp;<\/span><span style=\"font-family: &quot;times new roman&quot;; font-size: 7pt; font-stretch: normal;\">&nbsp; &nbsp;&nbsp;<\/span><\/span><b><span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\">Employment income<\/span><\/b><span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\">&#8211;&nbsp;<i>The employment income is<br \/>\nsubjected to tax first, then<\/i><\/span><span style=\"font-family: &quot;times new roman&quot; , serif; font-size: 13.5pt;\"><o:p><\/o:p><\/span><\/div>\n<table align=\"left\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td style=\"padding: 0cm 0cm 0cm 0cm; width: 38.25pt;\" width=\"51\"><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 0cm 0cm 0cm 0cm;\"><\/td>\n<td style=\"padding: 0cm 0cm 0cm 0cm;\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div style=\"margin-bottom: 0.0001pt;\">\n<b><span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\"><br \/><\/span><\/b><br \/>\n<b><span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\">Savings income<\/span><\/b><span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\">&#8211;&nbsp;<i>The savings<br \/>\nincome is subjected to tax next, then<\/i><\/span><\/div>\n<table align=\"left\" border=\"0\" cellpadding=\"0\" cellspacing=\"0\">\n<tbody>\n<tr style=\"height: 3.0pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;\">\n<td style=\"height: 3.0pt; padding: 0cm 0cm 0cm 0cm; width: 38.25pt;\" width=\"51\"><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 0cm 0cm 0cm 0cm;\"><\/td>\n<td style=\"padding: 0cm 0cm 0cm 0cm;\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div style=\"margin-bottom: 0.0001pt;\">\n<\/div>\n<div style=\"margin-bottom: 0.0001pt;\">\n<b><span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\">Dividends income<\/span><\/b><span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\">&#8211;&nbsp;<i>The<br \/>\ndividends are subjected to tax next, then<\/i><\/span><span style=\"font-family: &quot;times new roman&quot; , serif; font-size: 13.5pt;\"><o:p><\/o:p><\/span><\/div>\n<div style=\"margin-bottom: 0.0001pt;\">\n<\/div>\n<div style=\"margin-bottom: 0.0001pt;\">\n<b><span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\">Income from sale of assets<\/span><\/b><span style=\"font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\">&#8211;&nbsp;<i>The taxable income from<br \/>\ncapital assets will be taxed<\/i><\/span><span style=\"font-family: &quot;times new roman&quot; , serif; font-size: 13.5pt;\"><o:p><\/o:p><\/span><\/div>\n<p><\/p>\n<div>\n<\/div>\n<\/div>\n<div>\n<\/div>\n<div style=\"background-color: white; font-family: 'Trebuchet MS', Trebuchet, Verdana, sans-serif; font-size: 13.1999998092651px; line-height: 18.4799995422363px; text-align: justify;\">\n<span style=\"font-family: &quot;arial&quot; , sans-serif;\">Yours Sincerely,<o:p><\/o:p><\/span><\/div>\n<div style=\"background-color: white; font-family: 'Trebuchet MS', Trebuchet, Verdana, sans-serif; font-size: 13.1999998092651px; line-height: 18.4799995422363px; text-align: justify;\">\n<span style=\"font-family: &quot;arial&quot; , sans-serif;\">The Friendly Team<\/span><\/div>\n<div>\n<span style=\"background-color: white; font-family: &quot;arial&quot; , sans-serif; font-size: 12pt; line-height: 18.3999996185303px;\"><\/span><br style=\"background-color: white; font-family: 'Trebuchet MS', Trebuchet, Verdana, sans-serif; font-size: 13.1999998092651px; line-height: 18.4799995422363px;\" \/><\/div>\n<div style=\"background-color: white; font-family: 'Trebuchet MS', Trebuchet, Verdana, sans-serif; font-size: 13.1999998092651px; line-height: 18.4799995422363px; text-align: justify;\">\n<span style=\"font-family: &quot;arial&quot; , sans-serif;\">The Training Place of Excellence Limited<\/span><\/div>\n<div align=\"center\" style=\"text-align: center;\">\n<b><span style=\"color: white; font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt; line-height: 115%;\">ed<o:p><\/o:p><\/span><\/b><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Income tax is tax charged on income earned by individuals and it\u2019s used by the government to run and maintain the state. The government tax year starts on 6th April to 5th April the following year, so we have just come to the end of 2015\/16 tax year and started 2016\/17 tax year. Tax year &#8230; <a class=\"read-more\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2016\/06\/personal-tax-part-1\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-175","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>PERSONAL TAX PART 1 - The Training Place Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2016\/06\/personal-tax-part-1\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PERSONAL TAX PART 1 - The Training Place Blog\" \/>\n<meta property=\"og:description\" content=\"Income tax is tax charged on income earned by individuals and it\u2019s used by the government to run and maintain the state. 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