Personal Tax

Statute law - legilsation passed by parliament this includes the finance act.
Case law - arises from decisions made in courtrooms.

Rental income from land and property

Profits of trades and professions (self-employed and partnership)

UK interest and dividends

Income from employment etc, income tax is deducted from employment under PAYE.

1. Adds up income from different categories, noting what tax has been already paid and what is to be paid.
2. Personal allowance is deducted.... taxable income.
3.Taxable income is used to calculate income tax using tax bands

31st October following end of tax year therefore 31/10/10

31st January following end of tax year therefore 31/01/11

- premium bond prizes
- lottery prizes
- betting winnings (unless professional gambler)
- ISAs

First payment due on 31 January within the tax year.
Second payment due on 31 July following the end of the tax year.
e.g 31/01/10 first payment
31/07/2011 second payment
31/01/11 third payment

1 year 10months from end of tax year they relate.
E.g for 09/10 retained until 31st jan 2012

5 years 10 months from end of tax year

Accruals basis

Business and water rates, council tax, rent to a 'superior' landlord, interest on a loan to buy the property, insurance and mgmt expenses, advertising for tenants, ongoing repairs,mtce,redecoration, irrecoverable rent, wear and tear allowance.

10% x assessable rent ( - general, water rates and council tax)