Income Tax

Question 1

Allowances in the battle against IT

Answer 1

• personal allowance (£11850 )
• marraige allowance (£1,190)
• PSA (1000/500)
• starting rate band (£5000 @10%)
• Div allowance - £2000

Question 2

Marriage allowance rules

Answer 2

• lets you transfer £1190 to your husband, wife or civil partner
• if they earn more than you
• must have an income less than 11,850
• must be married/ civil partner
• partner must pay basic rate tax!!!