Tax Rates 2022/23

Personal income tax rates in the UK are progressive, meaning that as your income rises, so does your tax rate. Income tax rates are graded, with higher rates applying to higher income brackets. Tax is charged on total income (earned and invested) minus specified deductions and allowances. The personal allowance, which was GBP 12,570 in 2021/22 has been not changed for the tax year 2022/23 and is the most important allowance. Except for those who use the remittance basis or who have an annual income of more than GBP 125,140, most people are eligible to claim a personal allowance. The net amount is commonly referred to as the taxable income of a person after allowances. The progressive income tax rates vary widely depending on whether the income is from earnings or investments.

You’ve worked hard for your money. It’s all yours, and you’ve earned it. If you have income that isn’t taxed via a workplace pay-as-you-earn (PAYE) system, you’ll probably need to file a personal tax return. Under the HMRC self-assessment system, you will be required to calculate and report the amount of tax you estimate you owe. If you are a sole trader with a turnover of over £1,000 or if you are in a business partnership, you are required to file a return. Some accountants charge by the hour for each phone call and email they send. Others bind you to a recurring monthly fee or a large yearly fee. Honestly, if you simply want a very straightforward tax return straightening out, it’s a little much. As a result, no matter how simple or complicated your case may be, you’ll always know upfront how much you’ll be charged for our tax return service when you use our fixed rates.