All your income is not taxable and you’re only taxed on ‘taxable income’ above a certain level. Even then, there are other reliefs and allowances that can reduce your Income Tax bill – and in some cases mean you’ve no tax to pay.

TAXABLE INCOME:

  • Income from employment
  • Income from self employment/partnerships
  • Pension income
  • Retirement annuity.
  • Interest on savings
  • Investment income
  • Dividends on company shares
  • State benefits
  • Rental income
  • From a second property.
  • Other taxable income
  • Pensioner bonds.
  • Trust income.

NON-TAXABLE INCOME:

  • Disability Living Allowance
  • Attendance Allowance
  • Pension Credit
  • Housing Benefit
  • Employment and Support Allowance
  • Child Benefit
  • Guardian’s Allowance
  • Maternity Allowance
  • Industrial Injuries Benefit
  • Severe Disablement Allowance
  • Rents
  • First £4,250 a year from a lodger in your only or family home – £2,125 if split jointly.
  • Tax Credits
  • Working Tax Credit.
  • Child Tax Credit.
  • Premium Bonds
Personal allowance 2013/14
£
Born after 5 April 1948 9,440
Born after 5 April 1938 but before 6 April 1948 10,500
Born before 6 April 1938 10,660
Income limit for personal allowance 100,000
Income limit (born before 6/4/48) 26,100
Married couples’ allowance – maximum 7,915
Married couples’ allowance – minimum 3,040
Blind person’s allowance 2,160
Personal allowance 2014/15
£
Born after 5 April 1948 10,000
Born after 5 April 1938 but before 6 April 1948 10,500
Born before 6 April 1938 10,660
Income limit for personal allowance 100,000
Income limit (born before 6/4/48) 27,000
Married couples’ allowance – maximum 8,165
Married couples’ allowance – minimum 3,140
Blind person’s allowance 2,230
Personal allowance 2015/16
£
Born after 5 April 1948 10,500
Born after 5 April 1938 but before 6 April 1948 10,500
Born before 6 April 1938 10,660
Income limit for personal allowance 100,000
Income limit (born before 6/4/48) TBA
Married couples’ allowance – maximum TBA
Married couples’ allowance – minimum TBA
Blind person’s allowance TBA