TaxCalc Tax Summary 1999-2000
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This is how we work out your tax. The first two pages are a summary of your tax, click on any highlighted figures for subsidiary calculations. If your circumstances are complex the tax summary will not show every step in the calculation - if so go on to the tax calculation working sheet . The Inland Revenue provides four different working sheets depending on your circumstances. This summary contains the working sheet for people with capital gains and lump sums. Click the Help icon for more information.

				TAX DUE ê
Step 1	First, we work out how much of your income is liable to tax. To do this we:
	add up your taxable income	var1
	deduct payments you've made which qualify for tax relief	var2	var3
	add back in payments on which you've already had basic-rate relief (to stop you getting double relief)	var4	var5
	deduct allowances which qualify for full tax relief	var6	var7
Step 2	In most cases the result is your income liable  to lower-rate tax. We multiply this by 20%	var8		var9
Step 3	Next we calculate income liable to basic-rate tax. To do this we:
	deduct income from savings and investments (this is not liable to basic-rate tax)	var10
	deduct the lower-rate tax band	var11
Step 4	In most cases, the result is your income liable  to basic-rate tax. We multiply this by 3%		var12	var13
Step 5	Next we calculate income liable to higher-rate tax. To do this we:
	take your income including savings and investments	var14
	deduct the basic-rate tax band	var15
Step 6	The result is liable to higher-rate tax. We multiply this by 17%		var16	var17
Step 7	If you have any savings and investments income within the higher-rate band a further 3% tax is due on it.		var18	var19
	Tax so far			var20