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Financial Glossary
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> "Taxable earnings" Definition |
 Taxable earnings
The amount of an individual"s annual income on which tax is payable defined as:Taxable earnings = Income - Reliefs - AllowancesThe main reliefs are pension contributions and donations to charity. The main allowances are the "personal allowance" which every individual has (£4,615 for people under 65 in 2003-2004) and the Married Couples Allowance for couples where one spouse is 65 or over.So someone with Income of £20,000 who has made pension contributions in the year of £1,000 will have Total Income of £19,000, and his Taxable Income will be £19,000 less a personal allowance of £4,615 = £14,385.The amount of tax he has to pay will be determined by the tax bands in operation in the year in question. For 2003-2004, the bands are:£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58Over £30,500: tax rate is 40% (higher rate)
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Glossary 
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Dictionary
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Taxable earnings - The amount of an individual"s annual income on which tax is payable defined as:Taxable earnings = Income - Reliefs - AllowancesThe main reliefs are pension contributions and donations to charity. The main allowances are the "personal allowance" which every individual has (£4,615 for people under 65 in 2003-2004) and the Married Couples Allowance for couples where one spouse is 65 or over.So someone with Income of £20,000 who has made pension contributions in the year of £1,000 will have Total Income of £19,000, and his Taxable Income will be £19,000 less a personal allowance of £4,615 = £14,385.The amount of tax he has to pay will be determined by the tax bands in operation in the year in question. For 2003-2004, the bands are:£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58Over £30,500: tax rate is 40% (higher rate)
Taxable earnings : the amount of an individual"s annual income on which tax is payable defined as:taxable earnings = income - reliefs - allowancesthe main reliefs are pension contributions and donations to charity. the main allowances are the "personal allowance" which every individual has (£4,615 for people under 65 in 2003-2004) and the married couples allowance for couples where one spouse is 65 or over.so someone with income of £20,000 who has made pension contributions in the year of £1,000 will have total income of £19,000, and his taxable income will be £19,000 less a personal allowance of £4,615 = £14,385.the amount of tax he has to pay will be determined by the tax bands in operation in the year in question. for 2003-2004, the bands are:£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58over £30,500: tax rate is 40% (higher rate)
