Compensation and Tax?
So due to the "Settling" circumstance and other factors I would like to know the answer to this question: How much money do you have to recieve in order to be taxed? And how much Tax?
Please give as much detail as possible.
Thank you for your time.
Answers:
In the UK, money awarded by a Court is exempt from Income Tax. The previous answerer has just given you a link to a site giving tax rates on income, which does not apply in your case.
basically, if you are given compensation, it is immediately taxable, however, pls refer to this page http://www.winters.co.uk/taxation/income... This site will show you that there are existing personal and additional exemptions available at your disposal. This exemptions can be deducted from your gross compensation which renders only the residual as taxable.
The answer depends on your personal status and if you have any dependents. Please just refer to the site i pasted... There is no fixed compansation therefore that is the threshold for taxability.
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