Basic rate of tax
|
the standard rate of income tax, currently 20% |
Capital gains tax
|
generally tax on profits from investments such as property, shares etc |
Gross
|
term generally used to denote a figure before tax is deducted. |
Higher rate of tax
|
the highest rate of tax, currently 40% |
Inheritance tax
|
generally tax on assets when you pass away |
Income tax
|
generally tax on sources of income such as earnings, interest etc |
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National Insurance
|
generally a contribution you pay towards health, state pensions, benefits etc |
National Insurance number
|
a unique reference to you for tax and national insurance purposes |
Net
|
term generally used to denote a figure after tax is deducted. |
PAYE reference
|
a unique reference provided to your employer for tax purposes |
Rent a room scheme
|
a tax free allowance available to use in certain rental circumstances |
Starting rate of tax
|
the lowest rate of income tax, currently 10% |
tax allowances
|
tax free amounts provided by the Inland Revenue before you pay tax |
Tax bands / threshold
|
determines the rate at which you pay tax |
tax code or PAYE code
|
is broadly used to determine how much tax you should pay on your earnings. |
tax year |
runs from 6th April to the following 5th April |