Tax and Income Tax

Any personal finance website would not be complete without a section on Tax. Taxes are an important part of our lives, whether it is employment tax such as Income Tax or a tax on property, it is something all governments insist on, some wanting more than others!

Known as the IRS in the states, the Inland Revenue used to look after the collection of income tax in the UK. Now though they are called Her Majesty’s Revenue and Customs, the HM Revenue & Customs (HMRC) was formed on the 18 April 2005, following the merger of Inland Revenue and HM Customs and Excise Departments.

There has been a recent update in the tax rates which will be added to this page tomorrow, but basically the income tax free allowance has changed as from September 7th 2008 to £6035 and this will be back dated to April 2008, which means most people will receive about £60 in tax rebate during September. This is dependent on when they get paid and some people will actually get an income tax rebate of about £70.