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 Tel: 020 7060 1996 Fax: 020 7060 1997 E-mail: info@rmwm.co.uk
Principal - Marco Pietropoli |
Income Tax
Income Tax can be reduced or deferred substantially by using your allowances and by investing in tax efficient vehicles. Some of these are listed below:
• Pensions
• ISAs
• Venture Capital Trust (VCT)
• Film Partnerships
• National Savings
• Offshore Investments
A single person's income tax allowance for the year to 5th April 2007/2008 is £5,225. If your total income is less than this during the tax year then there's no tax to pay.
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2007-2008 |
2006-2007 |
Rate |
Band (£) |
Band (£) |
Starting rate
10% on Earnings
10% on Savings & Gains
10% on Dividends |
2,230 |
2,150 |
Basic rate
22% on Earnings
20% on Savings & Gains
10% on Dividends
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2,231-34,600 |
2,151-31,150 |
Higher rate
40% on Earnings
40% on Savings & Gains
32.5% on Dividends
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Over 34,600 |
Over 33,300 |
When discussing tax with our Adviser we also look at the tax status of your spouse. If one of you does not pay tax or is a basic rate tax payer, then it can be a good idea to move savings and investments to use up allowances and thus have lower overall tax to pay.
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