Tax Glossary
Welcome to the TWD Accountants Tax Glossary. To help you interpret the jargon that you can come across in dealing with your tax, our team of experts have written a brief explanation for hundreds of technical terms. Click on a letter to show entries.
This is investment income and liable to income tax. Generally, tax is deducted at source at a rate of 20%. From 6 April 2008 there is a 10% starting rate for "savings income" that you may be entitled to. The rate at which your saving income is taxable is dependant on your total income.
- If your total income, including your savings income is less than your personal allowances then you will not be liable to pay any tax and you should advise the bank or building society that tax should not be deducted.
- If your total income, excluding your savings is less than your personal allowance plus the lower rate limit, then some or all of your savings income will be liable to tax at only 10%.
- If your total income, including your savings is less than the personal allowance plus the basic rate limit, then your savings will be liable to tax at 20% which is covered by the tax deducted at source in most cases.
- if your total income, including savings income,exceeds your personal allowance plus the basic rate limit, some or all of your savings income will be liable to tax at 40%,
- if your total income, including savings income,exceeds your personal allowance plus the higher rate limit, some of all of your savings income will be liable to tax at 50%
For seafarers who: -
Are resident and ordinarily resident in the UK (or from 6 April are residents of the EU and EEA)
AND
Perform duties wholly or partly outside the UK
A 100% deduction may be allowed from taxable earnings.
These are full time civil servants, being barristers, advocats or solicitors etc. of at least 10 years standing, appointed for this purpose.
Where tax remains unpaid more than 28 days after the due date, you will be liable to a surcharge of 5% of the unpaid tax. An additional 5% will be levied on any amount still unpaid more than 6 months after the due date. Interest also accrues on a daily basis.
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