What Are Tax Rates and Allowances?
Tax rates decide how much tax you pay on different types of income, profits, or spending like your salary, business earnings, or when you buy property. Allowances are tax-free amounts or reliefs that reduce how much tax you owe. Together, tax rates and allowances shape what you pay HMRC and help you plan ahead, claim reliefs you’re entitled to, and avoid paying more tax than necessary.
Getting Started with Tax Rates and Allowances
Before you file a return or claim any reliefs, it’s important to understand which tax rates and allowances apply to you or your business. From knowing your personal tax-free thresholds to understanding the right VAT rate for your products or how much relief you can claim on investments, getting the basics right helps you stay compliant, avoid penalties, and make the most of what you’re entitled to.
Need help with your taxes?
Understanding tax rates and allowances can save you money but keeping up with the rules can be a headache. If you’d like clear, practical advice or help staying compliant, get in touch with Accounting Wise today.
