Personal Allowance (Tax)

[smr]

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!

 

[smr]

Forgive me if I'm wrong but isn't your allowance based on your tax code?

I think everyone , no matter on what income gets the same personal allowance ( £6,035 ) for 08-09...


http://www.hmrc.gov.uk/rates/it.htm

 

[smr]

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 ) 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.