Personal Income Tax
Personal income tax, sometimes known as PIT is a tax levied on a person’s income. It is a tax that is often collected on a pay as you earn basis with minor corrections made just after the end of the tax year. This tax is collected by HMRC.
The level of tax deductions is dependent on an individual’s wage or salary. The more you earn the more you are taxed. Income tax is measured in bands and can be found below.
|Tax Rate||Tax bands in 2010-11|
|Starting rate for savings: 10%||£0-£2,440|
|Basic rate: 20%||£0 - £37,400|
|Higher rate: 40%||Over £37,401 - £150,000|
|Additional higher rate: 50%||Over £150,000|