Personal Allowance (Tax)

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Soldato
Joined
6 Mar 2008
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Leicestershire
Hi all,

I've nearly completed my first tax year, filing my return online by Jan 31st 2010 but have a question...

And I am going to be looking around for an accountant tommorow anyway, but really wanted this answering/knowing now :)

With personal allowance, does this mean if I earned a net profit of £12,000 between in my tax year (Oct'08 - Oct'09) that I wouldn't pay tax on the first £6,035 (The personal allowance for the 2008-2009 tax year)... and only on the last £5965 of net profit?

Plz help and thank YOU if you do!
 
Soldato
Joined
23 Nov 2007
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4,879
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Lancashire, UK
Correct.

Also, save yourself the accounts fees tbh and do it online - the online form asks some general questions to start with that then eliminates a lot of the complicated later sections that don't apply to you.
 

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Soldato
OP
Joined
6 Mar 2008
Posts
8,671
Location
Leicestershire
Correct.

Also, save yourself the accounts fees tbh and do it online - the online form asks some general questions to start with that then eliminates a lot of the complicated later sections that don't apply to you.

My dad' runs his own business as well (well mines a carbon copy of his :p) and he has an accountant - I asked him why not do the accounts himself and his response was that accountants can take tax off that we won't know about and understand stuff like capital allowances and depreciation more.

That holds true about me because I no hardly anything / not enough about those particular things for example.
 
Permabanned
Joined
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Lost!
Capital allowances and depreciation are hardly rocket science. If you really feel the need then take some advice from a tax advisor or accountant but on 12k you're hardly going to be ground breaking and youll find it costs more than it saves.
 
Caporegime
Joined
28 Jun 2005
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48,104
Location
On the hoods
Capital allowances and depreciation are hardly rocket science. If you really feel the need then take some advice from a tax advisor or accountant but on 12k you're hardly going to be ground breaking and youll find it costs more than it saves.

Capital allowances are quite complex... But then I'm a tax adviser so I'll bet I know a lot more about them than most people!

As for personal allowances, they as driven by your tax code, but yours probably is the standard amount and you can indeed get that amount of earnings tax free and the rest is taxed.
 
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