My Ist self assessment

mazperks

Hi, Im doing my 1st tax return and have a question.
I know that any income from Isas does not go down, but does any pre taxed income from say a regular bank a/c, or share dividend (non Isa)
get taxed again, once It has taken me over my tax allowance of £8105.
Thanks Ian.

CLAPTON

mazperks wrote: »

Hi, Im doing my 1st tax return and have a question.
I know that any income from Isas does not go down, but does any pre taxed income from say a regular bank a/c, or share dividend (non Isa)
get taxed again, once It has taken me over my tax allowance of £8105.
Thanks Ian.

'yes' 'ordinary' interest/dividend does go down, but 'no' is does not get taxed a second time
you need to add it to the correct section where you say it is taxed at source

agrinnall

Actually, it may be taxed again, but only if you earn enough to take you into a higher rate tax band (so over around £42,000). Alternatively, if you only earn just over your allowance your interest income could be taxed at the 10% rate so you'd be due a refund.

mazperks

Thanks for that, I hope I made myself clear.
To sum up, even though my pre taxed income takes me beyond my tax free allowance I will not have to pay further tax on this ammount.

CLAPTON

mazperks wrote: »

Thanks for that, I hope I made myself clear.
To sum up, even though my pre taxed income takes me beyond my tax free allowance I will not have to pay further tax on this ammount.

basically they add up all your (gross) income
then work how much tax is due
then deduct any tax already paid

then you pay any residue
so you don't paid tax twice

agrinnall

If you do your tax return online then it will calculate whether your tax is correct or over- or under-paid, and will show you how it has been worked out. The simplest way to be sure of your situation is just to enter the figures and see what it says. But it is very unlikely that you will owe any more.