Uk Tax Bands

[bricro1]

Tax on the first �2230 of taxable income is 10% also tax on the first �2230 of savings is 10%. Do you get both allowances?

[Ethel]

No. You pay tax on the first �2230 of income regardless of its source.

You will see that all banks and building societies etc stop tax at 20% unless you fill in the form to state you are a non tax payer.

http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/Taxes/TaxOnSavingsAndInvestments/DG_4015739

[bricro1]

Many thanks. Confusing because there is no tax on dividends but you get a tax credit,therefore if you are not a taxpayer you cannot reclaim the "Tax Credit".Who thought that one up?

Best regards,Bricro.