Although tax is a fact of life, there are some forms of income that are non-taxable. These include child benefits, disability living and maternity allowances and other types of welfare benefits and grants, as well as interests from certain types of savings and investments (the Child Trust Fund being one example). Certain incomes are excluded from tax up to a certain amount as well, for example the first £7,500 from the Rent a Room scheme is also tax free. Therefore, citizens are not required to declare these types of income in their tax returns.
Tax on betting
One commonly asked question when it comes to accounting and taxation relates to profits made from betting or other forms of gambling. If you win a large some of money, the first thing that may come to mind is the percentage of tax you might be required to pay. However, there’s good news in store for these lucky individuals. The betting duty was abolished back in 2001, which means that in the UK even those who win multi-million jackpots from online UK casinos have to pay 0% tax on their winnings! Instead, today it’s the operators who are taxed, and not the players. However, a lot of operators found a way around this by moving to other jurisdictions where gambling is subject to much lower taxes.
If you have any doubts whether specific types of income are taxable or not, it’s best to ask your accountant, and he or she will be able to help you fill your tax declarations correctly.