‚ÄčThere are five main steps in calculating income tax, Call (877) 541-6901 for tax consultation.

Step 1: Add together all your yearly income, including social security benefits, income from renting out accommodation, wages, occupational pension, interest from bank and building society accounts. Call (877) 541-6901 for tax consultation.



Step 2: Take off any income which is exempt from tax. Calculate whether you can claim tax relief on any of the money you have spent over the year (tax relief usually applies to people who are self-employed and must buy items for the business). Deduct this tax relief. This leaves income on which tax may be payable (taxable income). Call (877) 541-6901 for tax consultation.




Step 3: Work out which tax allowances you are entitled to. You will be entitled to a personal allowance (plus age related additions if appropriate). These allowances are deducted at this stage in the calculation. 
Call (877) 541-6901 for tax consultation.




Step 4: Multiply the taxable income by the correct tax rate. This gives the tax due to be paid that year, unless you are entitled to married couple's allowance for over 65-year old. 


Call (877) 541-6901 for tax consultation.


Step 5: If applicable, deduct the appropriate percentage rate of married couple's allowance for over 65-year old.