Get your facts Right about the UK Income Tax Rules and Laws

Irrespective of the country you belong to, you can’t avoid paying a portion of your salary as income tax. Even though individuals give away their hard earned money as taxes, they have little knowledge about the process and the reason for the tax deduction. If you think paying taxes is a bad idea, think again. The government uses the tax you pay for the upliftment of the society. Living in the modern well-developed society is what we all want, but paying taxes pinches our heart.

One of the reasons why people fair of paying taxes is due to the efforts one has to incur in tax calculations. But, with the UK Salary calculator, now calculating taxes has become easier than ever. You only have to enter your gross salary, hours of work, tax year, and within no time you will get the net salary. But, before making use of the tax calculator there certain things about UK income tax that you need to get Acquaint with.

· Incomes that come under tax deductions: Whenever you go for the income tax calculation, you have to determine the taxable income. But it's to be noted that it's not necessary that you have to pay taxes on all incomes. Every year as a citizen of the UK, you are entitled to income tax free to a certain amount. The income that comes under the tax liability include :

1. The salary you receive from your company, including benefits.

2. If you are self-employed, still the earnings will come under the tax.

3. Income in the form of pensions.

4. The interest you receive on savings and social security benefits.

· Income that is exempted from tax: In case of certain incomes, you don’t have to pay taxes. When you calculate how much tax you are entitled to pay, such incomes are not taken into account. So, before you calculate UK Income after tax, note down the incomes that you have to ignore.

1. Some of the welfare benefits like child benefit, guardian’s allowances are not a part of income tax calculation.

2. Interest on certain types of savings and investments like a child trust fund, tax reserve certificates.

3. Other non-taxable incomes include child tax credit, income from the training course at work, and educational grants.

· Tax on Foreign income: Any income that comes from outside the country is referred to as foreign income. If you own any such income, you have to include it. Foreign income that comes under tax liability include:

1. The salary you receive from working outside the country.

2. Income on overseas property.

3. Overseas Pension.

The above go-to guide will help you in calculating your income tax. With the help of UK Income Tax calculator, now any person can calculate their net income. The Salary tax calculator is the perfect alternative to gruesome manual work you have to incur for calculating taxes.