--- oa_review_kit: v1 guide_slug: uk-income-tax-sa100 guide_version: uk-income-tax-sa100@2026-04-13T17:56:06.675Z archetype: personal_income --- # Review kit: UK Income Tax Sa100 Thank you for reviewing this Guide. This kit is one file with three parts: how to use it, an interview prompt for your AI, and the Guide itself. ## How to use this kit (3 steps, about 15 minutes) 1. Open the AI you already use (ChatGPT, Claude, Gemini, anything that reads markdown) and paste in everything from "INTERVIEW PROMPT" below, including the Guide at the end. 2. Your AI interviews you like a colleague, one question at a time. Just talk: war stories, walk-throughs, the mistakes you catch. No writing required. 3. Your AI writes your answers up as a single markdown file. Hand it back at openaccountants.com/skills/uk-income-tax-sa100/handback (also linked from the Guide page: "Hand back your file"). What you added is published under your name and credential. If your AI cannot produce the exact output format, hand back whatever you have: a revised Guide file, a worksheet, or plain notes. We take those too, and a person reviews them by hand. The format below is the one we can apply straight away. --- # INTERVIEW PROMPT (paste from here down into your AI) You are interviewing a practising accountant about how they actually do the work covered by the attached Guide ("UK Income Tax Sa100", slug `uk-income-tax-sa100`). Interview them like a colleague doing a handover. Do not lecture. Ask ONE question at a time and wait for the answer. Chase war stories and specifics: what kind of client, which portal step, how big the penalty was. The rates, thresholds, and citations are our job; we refresh those from primary sources. Capture ONLY what is NOT derivable from law: - order of operations, and what a wrong order corrupts - what to ask a client before computing anything - what to assume when a fact is unknown, and how it gets flagged - the most-missed traps, with penalty size and who falls in - how the portal or filing channel actually behaves - what has to reconcile before anyone signs - when to refuse the work and hand it to a human specialist If the accountant corrects a rate, threshold, or deadline in the Guide along the way, record it in the FACT CORRECTIONS table, but do not steer the interview toward numbers. ## Questions to work through Ask these in order, one at a time. Skip any the accountant has already covered; follow up where a story has specifics worth pinning down. Each question is tagged with the method slot(s) it feeds. 1. [intake_questions] A new personal-tax client sits down. What are your first five questions before you touch a number? 2. [intake_questions] [conservative_default] Which of those answers, if missing, makes you stop rather than estimate? 3. [evidence] Which documents do you insist on seeing, and which do you take the client's word for? 4. [sequence] In what order do you build the return, and what goes wrong when someone does it backwards? 5. [trap] What deduction or relief do clients most often believe they're entitled to but aren't? 6. [trap] What computation does software or AI most often get wrong on returns you've reviewed? 7. [judgment_rule] When the law gives two routes (regime choice, standard vs itemized, allowance vs actuals), how do you actually pick, and what do you write down about the choice? 8. [cross_check] What triggers the tax authority's mismatch letters in your experience, and what do you reconcile up front to prevent them? 9. [edge_case] Tell me about a client whose side income (platform, rental, foreign) changed the whole shape of the return. What did you do differently? 10. [filing_mechanics] Walk me through the e-filing itself: the verification step, the deadline nobody knows, what happens if the client doesn't do their part. 11. [scope_gate] What kind of personal-tax client do you turn away or send to a specialist? 12. [handback_protocol] What exactly do you hand the client before anything is filed? What's in your working paper? ## Method slots (for tagging the write-up) - `scope_gate` (Scope gate and refusals): when to stop and send the client to a human - `sequence` (Order of operations): what order to do things in, and what a wrong order corrupts - `intake_questions` (Client intake questions): what to ask a client before computing - `evidence` (Documents and evidence): which documents to insist on, and what is draft-grade vs file-grade - `judgment_rule` (Judgment rules): how a practitioner actually picks when the law allows two routes - `conservative_default` (Conservative defaults): what to assume when a fact is unknowable at draft time - `trap` (Traps and most-missed items): the mistakes everyone makes, what they cost, and who falls in - `filing_mechanics` (Portal and filing mechanics): how submission actually works: channel, order, what locks - `cross_check` (Cross-checks before signing): what has to reconcile with what before delivery, and how close is close enough - `pattern_library` (Pattern library): how messy real-world data (bank lines, payout platforms) maps to tax categories - `edge_case` (Edge-case playbook): the client situations that change the method, not just the numbers - `unsettled_law` (Unsettled-law flags): what not to finalise right now, and why - `handback_protocol` (Hand-back protocol): what the finished working paper contains and who reviews it ## Output format: oa-handback v1 When the interview is done, write the answers up as ONE markdown file in exactly this shape. Fill in the reviewer's real name, credential, and email (ask for them at the end if they have not come up). Every method block gets a `### [method:]` heading where `` is one of the 13 slot ids above. Keep `guide_slug` and `guide_version` exactly as given. Omit any section the interview produced nothing for, but keep the headings that remain exactly as shown. The `fact_key` column may be left blank when unknown. ```markdown --- oa_handback: v1 guide_slug: uk-income-tax-sa100 guide_version: uk-income-tax-sa100@2026-04-13T17:56:06.675Z reviewer_name: reviewer_credential: # free text: CPA, EA, ACCA, Steuerberater... reviewer_email: verdict: --- ## METHOD ### [method:filing_mechanics] ### [method:intake_questions] - - ... ## FACT CORRECTIONS | fact_key | current | correct | source | |---|---|---|---| | | | | | ## FLAGS - [unsettled] - [refer] ## NOTES ``` If for any reason you cannot produce this exact format, output the accountant's corrections and methods as clear plain notes instead. The hand-back page accepts plain notes and revised Guide files too; this format is an optimization, never a gate. --- # THE GUIDE UNDER REVIEW --- name: uk-income-tax-sa100 description: Use this skill whenever asked about UK income tax for individuals filing SA100 Self Assessment. Trigger on phrases like "income tax UK", "SA100", "personal allowance", "tax bands", "tax computation", "marriage allowance", "savings allowance", "dividend allowance", "Scottish tax rates", "payments on account", "tax reducers", "tax relief", "April 2026", "2026-27", "Autumn Budget 2025", "income tax bands frozen 2027-28", or any question about computing a UK individual's income tax liability. Covers personal allowance (including taper), income tax bands for rUK and Scotland, marriage allowance, savings and dividend allowances, tax reducers, the final tax computation, payments on account, and the Autumn Budget 2025 changes from April 2026. ALWAYS read this skill before touching any UK income tax return work. jurisdiction: GB domain: income-tax tax_year: 2025 --- # uk-income-tax-sa100 ## UK Income Tax (SA100) -- Individual Tax Computation Skill v2.1 This skill covers **three tax years in parallel**: - **Prior year:** 2024-25 (6 April 2024 -- 5 April 2025) -- filed by 31 January 2026 - **Current year:** 2025-26 (6 April 2025 -- 5 April 2026) -- filed by 31 January 2027 - **From 6 April 2026:** 2026-27 (6 April 2026 -- 5 April 2027) -- filed by 31 January 2028 All headline income tax rates and thresholds are **frozen through 2027-28**. The Autumn Budget 2025 announced targeted rate increases on investment income (dividends, savings, property) effective 6 April 2026 -- see Section 1.5. ## Verified rates & thresholds (accountant-reviewed) > Reviewed against the cited tax authorities by **James Power** on 2026-06-03. > Items flagged for further clarification are tracked separately and excluded here. > This block is generated from verified `skill_facts` — edit the facts, not the prose. ### Income Tax SA100 - **Personal allowance** — £0 – £12,570 at 0% _(ITA 2007)_ - **Basic rate (rUK)** — £12,571 – £50,270 at 20% _(ITA 2007)_ - **Higher rate (rUK)** — £50,271 – £125,140 at 40% _(ITA 2007)_ - **Additional rate (rUK)** — Over £125,140 at 45% _(ITA 2007)_ - **Starter rate (Scotland)** — £12,571 – £14,876 at 19% _(Scotland Act 2016)_ - **Basic rate (Scotland)** — £14,877 – £26,561 at 20% _(Scotland Act 2016)_ - **Intermediate rate (Scotland)** — £26,562 – £43,662 at 21% _(Scotland Act 2016)_ - **Higher rate (Scotland)** — £43,663 – £75,000 at 42% _(Scotland Act 2016)_ - **Advanced rate (Scotland)** — £75,001 – £125,140 at 45% _(Scotland Act 2016)_ - **Top rate (Scotland)** — Over £125,140 at 48% _(Scotland Act 2016)_ - **Personal allowance** — £12,570 _(ITA 2007)_ - **PA taper starts** — £100,000 adjusted net income _(ITA 2007)_ - **PA fully withdrawn** — £125,140 _(ITA 2007)_ - **Basic rate band** — £37,700 _(ITA 2007)_ - **PSA (basic rate)** — £1,000 _(ITA 2007)_ - **PSA (higher rate)** — £500 _(ITA 2007)_ - **Dividend allowance** — £500 _(ITA 2007 s.13A)_ - **Marriage allowance transfer** — £1,260 (reducer £252) _(ITA 2007)_ - **Pension annual allowance** — £60,000 _(Finance Act)_ - **Basic rate** — 8.75% _(ITA 2007)_ - **Higher rate (£50,271--£125,140)** — 33.75% - **Additional rate** — 39.35% _(ITA 2007)_ - **Online SA return deadline** — 31 January following tax year _(TMA 1970)_ - **Paper SA return deadline** — 31 October following tax year _(TMA 1970)_ ## Section 1 -- Quick Reference **Section 1 -- Quick Reference** | Field | Value | | --- | --- | | Country | United Kingdom | | Tax | Income Tax (rUK rates or Scottish rates) | | Currency | GBP only | | Tax years in scope | 2024-25 (prior), 2025-26 (current), 2026-27 (from 6 April 2026) | | Primary legislation | Income Tax Act 2007 (ITA 2007); ITEPA 2003; ITTOIA 2005 | | Supporting legislation | Finance Act 2024; Finance Act 2025; Finance (No. 2) Bill 2024-26 / Finance Bill 2026 (pending Royal Assent); Scotland Act 2016; TMA 1970 | | Tax authority | HM Revenue & Customs (HMRC) | | Filing portal | HMRC Self Assessment Online | | Filing deadline (online) 2024-25 | 31 January 2026 | | Filing deadline (online) 2025-26 | 31 January 2027 | | Filing deadline (online) 2026-27 | 31 January 2028 | | Contributor | Open Accountants Community | | Validated by | Verified by James Power on 2026-06-03 | | Skill version | 2.1 | ### 1.0 Three-Year Comparison -- Headline rUK Bands (FROZEN through 2027-28) [T1] **1.0 Three-Year Comparison -- Headline rUK Bands (FROZEN through 2027-28) [T1]** | Item | 2024-25 | 2025-26 | 2026-27 | | --- | --- | --- | --- | | Personal allowance | GBP 12,570 | GBP 12,570 | GBP 12,570 (frozen) | | Basic rate band (20%) | up to GBP 50,270 | up to GBP 50,270 | up to GBP 50,270 (frozen) | | Higher rate band (40%) | GBP 50,271 -- 125,140 | GBP 50,271 -- 125,140 | GBP 50,271 -- 125,140 (frozen) | | Additional rate (45%) | over GBP 125,140 | over GBP 125,140 | over GBP 125,140 (frozen) | | PA taper threshold | GBP 100,000 | GBP 100,000 | GBP 100,000 (frozen) | | PA fully withdrawn at | GBP 125,140 | GBP 125,140 | GBP 125,140 (frozen) | **Source:** Personal allowance and higher rate threshold freeze extended to 5 April 2028 (Finance (No. 2) Act 2023 s.5; Autumn Budget 2025 confirmed no further extension at this stage, but the freeze through 2027-28 remains in force). ### 1.1 Income Tax Bands -- England, Wales, Northern Ireland (rUK) -- 2024-25 [T1] **1.1 Income Tax Bands -- England, Wales, Northern Ireland (rUK) -- 2024-25 [T1]** | Band | Taxable Income | Rate | | --- | --- | --- | | Personal allowance | GBP 0 -- 12,570 | 0% | | Basic rate | GBP 12,571 -- 50,270 | 20% | | Higher rate | GBP 50,271 -- 125,140 | 40% | | Additional rate | Over GBP 125,140 | 45% | ### 1.2 Income Tax Bands -- rUK -- 2025-26 [T1] **1.2 Income Tax Bands -- rUK -- 2025-26 [T1]** | Band | Taxable Income | Rate | | --- | --- | --- | | Personal allowance | GBP 0 -- 12,570 | 0% | | Basic rate | GBP 12,571 -- 50,270 | 20% | | Higher rate | GBP 50,271 -- 125,140 | 40% | | Additional rate | Over GBP 125,140 | 45% | ### 1.3 Income Tax Bands -- rUK -- 2026-27 (from 6 April 2026) [T1] **1.3 Income Tax Bands -- rUK -- 2026-27 (from 6 April 2026) [T1]** | Band | Taxable Income | Rate | | --- | --- | --- | | Personal allowance | GBP 0 -- 12,570 | 0% | | Basic rate | GBP 12,571 -- 50,270 | 20% | | Higher rate | GBP 50,271 -- 125,140 | 40% | | Additional rate | Over GBP 125,140 | 45% | Headline rates and thresholds are **unchanged** from 2025-26 -- the freeze continues through 2027-28. Autumn Budget 2025 changes are confined to investment income (see Section 1.5). ### 1.4 Scottish Income Tax Bands [T1] - **Scope of Scottish bands** — Scottish bands are set annually by the Scottish Parliament (Scotland Act 2016) and are independent of the rUK schedule. They apply ONLY to non-savings, non-dividend income. Savings and dividends always use UK-wide rates. _(Scotland Act 2016)_ #### Scottish Bands 2024-25 **Scottish Bands 2024-25** | Band | Taxable Income | Rate | | --- | --- | --- | | Personal allowance | GBP 0 -- 12,570 | 0% | | Starter rate | GBP 12,571 -- 14,876 | 19% | | Basic rate | GBP 14,877 -- 26,561 | 20% | | Intermediate rate | GBP 26,562 -- 43,662 | 21% | | Higher rate | GBP 43,663 -- 75,000 | 42% | | Advanced rate | GBP 75,001 -- 125,140 | 45% | | Top rate | Over GBP 125,140 | 48% | #### Scottish Bands 2025-26 **Scottish Bands 2025-26** | Band | Taxable Income | Rate | | --- | --- | --- | | Personal allowance | GBP 0 -- 12,570 | 0% | | Starter rate | GBP 12,571 -- 15,397 | 19% | | Basic rate | GBP 15,398 -- 27,491 | 20% | | Intermediate rate | GBP 27,492 -- 43,662 | 21% | | Higher rate | GBP 43,663 -- 75,000 | 42% | | Advanced rate | GBP 75,001 -- 125,140 | 45% | | Top rate | Over GBP 125,140 | 48% | #### Scottish Bands 2026-27 **TBC -- Scottish Budget 2025-26 not yet enacted at time of writing.** The Scottish Government typically announces rates in December for the following April. Verify against the Scottish Rate Resolution before finalising any 2026-27 computation. Until then, apply 2025-26 bands as a working estimate and flag for reviewer. ### 1.5 Changes from April 2026 -- Autumn Budget 2025 [T1] Effective **6 April 2026**, the following changes take effect under measures announced in the Autumn Budget 2025 (Finance (No. 2) Bill 2024-26 / Finance Bill 2026, pending Royal Assent): **Autumn Budget 2025 Changes** | Item | 2025-26 | 2026-27 | | --- | --- | --- | | Dividend ordinary rate | 8.75% | **10.75%** | | Dividend upper rate | 33.75% | **35.75%** | | Dividend additional rate | 39.35% | 39.35% (unchanged) | | Savings income basic / higher / additional | 20% / 40% / 45% | **TBC -- expected 22% / 42% / 45%** (Autumn Budget 2025 announcement; verify against enacted Finance Bill) | | Property income basic / higher / additional | 20% / 40% / 45% | **TBC -- expected 22% / 42% / 45%** (Autumn Budget 2025 announcement; verify against enacted Finance Bill) | | All other headline bands and PA | frozen | frozen (no change) | | HICBC tapered threshold | GBP 60,000 / GBP 80,000 | GBP 60,000 / GBP 80,000 (unchanged from 2024-25 reform) | - **Dividend rates** -- confirmed 2pp uplift on ordinary and upper rates from 6 April 2026. See companion skill `uk-dividends` for the detailed dividend computation, the GBP 500 allowance interaction, and worked examples. - **Savings income and property income** -- the Autumn Budget 2025 announced changes aligning these income streams more closely with the dividend treatment, expected to be a 2pp uplift on basic and higher rate bands (no change at additional rate). **TBC -- verify against Finance (No. 2) Bill 2024-26 / Finance Bill 2026 once enacted.** Do not finalise a 2026-27 computation involving material savings or property income until the rates are confirmed. Flag for reviewer. - **HICBC** -- the GBP 60,000 starting / GBP 80,000 full claw-back tapered threshold introduced from 2024-25 remains in force for 2026-27 (no further reform announced). - **All other bands frozen** -- Personal Allowance (GBP 12,570), basic rate threshold (GBP 50,270), additional rate threshold (GBP 125,140), and PA taper threshold (GBP 100,000) are all frozen through 2027-28. ### Key Allowances and Thresholds [T1] **Key Allowances and Thresholds [T1]** | Item | 2024-25 | 2025-26 | 2026-27 | | --- | --- | --- | --- | | Personal allowance | GBP 12,570 | GBP 12,570 | GBP 12,570 | | PA taper threshold | GBP 100,000 | GBP 100,000 | GBP 100,000 | | PA fully withdrawn | GBP 125,140 | GBP 125,140 | GBP 125,140 | | Basic rate band | GBP 37,700 | GBP 37,700 | GBP 37,700 | | Personal savings allowance (basic rate) | GBP 1,000 | GBP 1,000 | GBP 1,000 (TBC -- verify Finance Bill 2026) | | Personal savings allowance (higher rate) | GBP 500 | GBP 500 | GBP 500 (TBC -- verify Finance Bill 2026) | | Personal savings allowance (additional rate) | GBP 0 | GBP 0 | GBP 0 | | Starting rate for savings band | GBP 5,000 | GBP 5,000 | GBP 5,000 (TBC) | | Dividend allowance | GBP 500 | GBP 500 | GBP 500 | | Marriage allowance transfer | GBP 1,260 (reducer GBP 252) | GBP 1,260 (reducer GBP 252) | GBP 1,260 (reducer GBP 252) | | Annual pension allowance | GBP 60,000 | GBP 60,000 | GBP 60,000 | | HICBC tapered threshold (start / full claw-back) | GBP 60,000 / 80,000 | GBP 60,000 / 80,000 | GBP 60,000 / 80,000 | ### Dividend Rates [T1] **Dividend Rates [T1]** | Band | 2024-25 | 2025-26 | 2026-27 | | --- | --- | --- | --- | | Within basic rate band | 8.75% | 8.75% | **10.75%** | | Within higher rate band | 33.75% | 33.75% | **35.75%** | | Within additional rate band | 39.35% | 39.35% | 39.35% | See companion skill `uk-dividends` for full dividend-specific guidance, including the GBP 500 allowance, scrip dividends, and overseas dividend treatment. ### Conservative Defaults [T1] **Conservative Defaults [T1]** | Ambiguity | Default | | --- | --- | | Unknown tax year | Current year (2025-26) | | Unknown residency | UK resident (but STOP if genuinely unclear) | | Unknown Scottish status | rUK rates | | Unknown income category | Non-savings income | | Unknown pension contribution method | Relief at source | | Unknown marriage allowance eligibility | Do not apply | | Unknown 2026-27 savings/property rate | Flag TBC; do not finalise without Finance Bill confirmation | ## Section 2 -- Required Inputs and Refusal Catalogue ### Required Inputs - **Minimum viable** — P60 (employment income), self-employment profit from SA103, and confirmation of residency status and Scottish taxpayer status. - **Recommended** — P11D (benefits in kind), bank interest certificates, dividend vouchers, pension contribution statements, Gift Aid records, prior year SA302 (tax calculation). - **Ideal** — all supplementary pages (SA103, SA105, SA106), complete records of all income sources, prior year payments on account made. ### Refusal Catalogue - **R-UK-IT-1** — Non-resident and split-year cases have different rules and may involve the remittance basis. Out of scope. Escalate. (Non-resident or split-year treatment) - **R-UK-IT-2** — The remittance basis for non-doms requires specialist advice. Out of scope. (Note: the remittance basis is abolished from 6 April 2025 and replaced by a residence-based regime -- escalate any post-April-2025 non-dom queries.) (Non-domiciled individuals) - **R-UK-IT-3** — Income from trusts (SA107) has specific rules. Out of scope. (Trust income) - **R-UK-IT-4** — Tapered annual allowance, money purchase annual allowance, and carry-forward calculations beyond basic require specialist review. Escalate. (Complex pension annual allowance) - **R-UK-IT-5** — Capital gains are computed separately on SA108. This skill covers income tax only. (Capital gains) - **R-UK-IT-6** — The Autumn Budget 2025 announced rate changes to savings and property income from 6 April 2026 but the specific rates are pending Finance Bill enactment. Do not finalise a 2026-27 return involving material savings or property income until the Finance Bill receives Royal Assent. Flag for reviewer. (2026-27 savings/property rate finalisation) ## Section 3 -- Transaction Pattern Library For SA100, the "transactions" are not bank statement lines but rather income items from various sources flowing into the tax computation. This pattern library maps income types to the correct SA100 section and tax treatment. ### 3.1 Employment Income Patterns **3.1 Employment Income Patterns** | Source Document | SA100 Section | Treatment | Notes | | --- | --- | --- | --- | | P60 (annual certificate) | TR3 (Employment) | Gross pay before PAYE deducted | PAYE tax goes to "tax deducted" | | P45 (leaver certificate) | TR3 | Gross pay for period employed | May need to combine with P60 from new employer | | P11D (benefits in kind) | TR3 | Add to employment income | Car benefit, medical insurance, etc. | | Tips, bonuses (not on P60) | TR3 | Add to employment income | Must be declared even if not on P60 | | Redundancy payment | TR3 | First GBP 30,000 exempt. Excess taxable. | [T2] Confirm composition of payment | | Employer pension contribution | EXCLUDE | Not taxable income to employee | Employer contribution does not appear on SA100 | ### 3.2 Self-Employment Income Patterns **3.2 Self-Employment Income Patterns** | Source | SA100 Section | Treatment | Notes | | --- | --- | --- | --- | | SA103 taxable trading profit | TR4 (Self-employment) | Attach SA103 | Computed per uk-self-employment-sa103 skill | | Multiple self-employments | TR4 | Separate SA103 for each trade | Combined for Class 4 NIC | ### 3.3 Savings Income Patterns **3.3 Savings Income Patterns** | Source | SA100 Section | Treatment | Notes | | --- | --- | --- | --- | | Bank interest (UK) | TR5 (Savings) | Gross amount | Most banks pay interest gross since 2016 | | Building society interest | TR5 | Gross amount | Same | | Government bond interest (gilts) | TR5 | Gross amount | Savings income | | NS&I interest (non-ISA) | TR5 | Gross amount | Premium Bond prizes are tax-free | | ISA interest | EXCLUDE | Tax-free | Do not include | | P2P lending interest | TR5 | Gross amount | Savings income | ### 3.4 Dividend Income Patterns **3.4 Dividend Income Patterns** | Source | SA100 Section | Treatment | Notes | | --- | --- | --- | --- | | UK company dividends | TR6 (Dividends) | Gross dividend | No tax credit since 2016 | | Overseas dividends | TR6 or SA106 | Gross amount in GBP | May have foreign tax credit | | Investment fund dividends | TR6 | As per tax voucher | Some funds pay interest distributions | | Scrip dividends | TR6 | Cash equivalent | Taxable as dividend | ### 3.5 Pension Income Patterns **3.5 Pension Income Patterns** | Source | SA100 Section | Treatment | Notes | | --- | --- | --- | --- | | State pension | TR5 (Pensions) | Full amount taxable | No tax deducted at source | | Private/occupational pension | TR5 | Gross amount | PAYE usually deducted | | Pension lump sum (25% tax-free) | Partly TR5 | Only 75% taxable | First 25% is tax-free | | Drawdown income | TR5 | Full amount taxable | No tax-free element (25% already taken) | ### 3.6 Pension Contribution Patterns (Deductions) **3.6 Pension Contribution Patterns (Deductions)** | Source | Treatment | Notes | | --- | --- | --- | | Personal pension (relief at source) | Gross up: contribution x 100/80. Extends basic rate band. Higher/additional relief via SA100. | Net contribution already includes 20% basic rate relief claimed by pension provider. | | Workplace pension (net pay) | Already deducted from gross pay. No further claim. | Already reflected in P60 gross figure. | | SIPP contribution | Same as relief at source | Gross up for higher rate relief. | ### 3.7 Other Income Patterns **3.7 Other Income Patterns** | Source | SA100 Section | Treatment | Notes | | --- | --- | --- | --- | | Rental income (net) | TR6 (Property) | Attach SA105 | Separate computation | | Foreign income | SA106 | Separate computation | May involve double tax relief | | Miscellaneous income | SA101 | Various | Catch-all | ## Section 4 -- Worked Examples Each scenario is repeated across all three years so reviewers can see the year-on-year effect of the rate freeze and the April 2026 changes. ### Example 1 -- Basic Rate Taxpayer (Employment Only) - **Basic rate taxpayer computation** — Input: Employment GBP 35,000. PAYE deducted GBP 4,486. No other income. Computation (identical for 2024-25, 2025-26, and 2026-27 -- bands frozen): Personal allowance: GBP 12,570. Taxable income: 35,000 - 12,570 = GBP 22,430. Tax: 22,430 x 20% = GBP 4,486. Less PAYE: GBP 4,486. Balance: GBP 0. Note: Because no investment income is involved and headline bands are frozen, the computation is identical across all three years. ### Example 2 -- Employment + Self-Employment + Dividends Input: Employment GBP 40,000 (PAYE GBP 5,486). Self-employment profit GBP 20,000. Dividends GBP 5,000. #### 2024-25 computation - **2024-25 computation** — Total income: GBP 65,000. Personal allowance: GBP 12,570. Taxable: GBP 52,430. Non-savings (GBP 60,000 - 12,570 = GBP 47,430): 37,700 x 20% = GBP 7,540. Remaining 9,730 x 40% = GBP 3,892. Dividends (GBP 5,000 -- all in higher rate band): 500 at 0% (dividend allowance) + 4,500 x 33.75% = GBP 1,518.75. Total tax: 7,540 + 3,892 + 1,518.75 = GBP 12,950.75. Less PAYE: GBP 5,486. Balance via SA: GBP 7,464.75 #### 2025-26 computation - **2025-26 computation** — Identical to 2024-25 (no rate or threshold changes). Total tax GBP 12,950.75. #### 2026-27 computation - **2026-27 computation** — Non-savings tax unchanged: 7,540 + 3,892 = GBP 11,432. Dividends at new rates: 500 at 0% + 4,500 x 35.75% = GBP 1,608.75. Total tax: 11,432 + 1,608.75 = GBP 13,040.75. Increase vs 2025-26: GBP 90.00 (entirely from the 2pp dividend uplift on the GBP 4,500 chargeable above the allowance). (Class 4 NIC on self-employment is computed in the SA103 skill -- see uk-self-employment-sa103.) ### Example 3 -- Personal Allowance Taper - **PA taper example** — Input: Total income GBP 115,000. GBP 10,000 gross pension contribution (relief at source). Computation (identical for 2024-25, 2025-26, and 2026-27 -- PA taper threshold frozen at GBP 100,000): Adjusted net income: 115,000 - 10,000 = GBP 105,000. PA reduction: (105,000 - 100,000) / 2 = GBP 2,500. Personal allowance: 12,570 - 2,500 = GBP 10,070. Basic rate band extended by pension: 37,700 + 10,000 = GBP 47,700. Higher rate threshold: 10,070 + 47,700 = GBP 57,770 ### Example 4 -- Scottish Taxpayer with Savings Input: Scottish taxpayer. Employment GBP 50,000. Bank interest GBP 3,000. #### 2024-25 computation - **2024-25 computation** — Non-savings (Scottish 2024-25 rates): 50,000 - 12,570 = GBP 37,430 taxable. Starter (2,306): 19% = GBP 438.14. Basic (11,685): 20% = GBP 2,337.00. Intermediate (17,101 -- up to 43,662-12,570=31,092): 21% = GBP 3,591.21. Higher (37,430 - 31,092 = 6,338): 42% = GBP 2,661.96. Savings (UK rates): GBP 3,000 -- taxpayer is higher rate. PSA: GBP 500 at 0%. Remaining: GBP 2,500 at 40% = GBP 1,000. Total: 9,028.31 + 1,000 = GBP 10,028.31 #### 2025-26 computation - **2025-26 computation** — Non-savings (Scottish 2025-26 rates -- starter and basic bands slightly wider): 50,000 - 12,570 = GBP 37,430 taxable. Starter (2,827): 19% = GBP 537.13. Basic (12,094): 20% = GBP 2,418.80. Intermediate (16,171 -- up to 43,662-12,570=31,092): 21% = GBP 3,395.91. Higher (37,430 - 31,092 = 6,338): 42% = GBP 2,661.96. Savings (UK rates): GBP 3,000 -- taxpayer is higher rate. PSA: GBP 500 at 0%. Remaining: GBP 2,500 at 40% = GBP 1,000. Total: 9,013.80 + 1,000 = GBP 10,013.80 #### 2026-27 computation - **2026-27 computation** — Non-savings (Scottish 2026-27 rates -- TBC pending Scottish Budget; using 2025-26 as working estimate): GBP 9,013.80 (same as 2025-26 estimate). Savings (UK rates -- TBC pending Finance Bill 2026): GBP 3,000 -- taxpayer is higher rate. PSA: GBP 500 at 0% (assumed unchanged). Remaining: GBP 2,500 at expected 42% = GBP 1,050 (vs GBP 1,000 in 2025-26). Estimated total: 9,013.80 + 1,050 = GBP 10,063.80 (TBC -- flag for reviewer; do not finalise until Finance Bill enacted) ### Example 5 -- Marriage Allowance - **Marriage allowance example** — Input: Spouse A income GBP 10,000. Spouse B income GBP 28,000 (basic rate). Election made. Computation (identical for 2024-25, 2025-26, and 2026-27 -- marriage allowance frozen at GBP 1,260 / reducer GBP 252): Spouse A: PA reduced to GBP 11,310. Income GBP 10,000 < GBP 11,310. Tax = GBP 0. Spouse B: Tax = (28,000 - 12,570) x 20% = GBP 3,086. Less marriage allowance reducer GBP 252. Tax = GBP 2,834. ### Example 6 -- HICBC (2024-25 reform onwards, applies in 2025-26 and 2026-27) - **HICBC example** — Input: Higher earner adjusted net income GBP 70,000. Child benefit received GBP 2,212.60 (one child, full year). Computation (identical for 2024-25, 2025-26, and 2026-27 -- HICBC threshold frozen at GBP 60,000 / GBP 80,000): ANI in taper zone: GBP 70,000 (between GBP 60,000 and GBP 80,000). Excess over GBP 60,000: GBP 10,000. Charge percentage: 10,000 / 200 = 50%. HICBC: 2,212.60 x 50% = GBP 1,106.30. Added to tax due via SA100 ### 5.1 Income Ordering [T1] - **Income ordering** — Mandatory order: (1) Non-savings income fills bands first. (2) Savings income next. (3) Dividends on top. This ordering is required by law and affects which rates apply. The ordering rule is unchanged in 2026-27 -- only the rates on savings and dividends change. _(ITA 2007, ss 6-22)_ ### 5.2 Personal Allowance [T1] - **Personal allowance** — GBP 12,570 across all three years (2024-25, 2025-26, 2026-27 -- frozen through 2027-28). Tapers at GBP 1 for every GBP 2 above GBP 100,000 adjusted net income. Fully withdrawn at GBP 125,140. Effective 60% marginal rate in taper zone. Adjusted net income = Total income - gross pension contributions - grossed-up Gift Aid. _(ITA 2007, s35)_ ### 5.3 Savings Allowance and Starting Rate [T1] - **Personal savings allowance and starting rate for savings** — Personal savings allowance: GBP 1,000 (basic rate), GBP 500 (higher rate), GBP 0 (additional rate). Starting rate for savings: GBP 5,000 at 0%, reduced by GBP 1 for each GBP 1 of non-savings income above PA. 2026-27: Allowance amounts are expected to remain unchanged, but the rates applied to savings income above the allowance are TBC pending Finance Bill 2026 enactment (Autumn Budget 2025 announced an expected 2pp uplift on basic and higher bands). _(ITA 2007, ss 12A-12B)_ ### 5.4 Dividend Allowance [T1] - **Dividend allowance and dividend rates** — GBP 500 at 0% rate (unchanged across all three years). Uses up the basic rate band -- it is NOT a deduction from income. Dividend rates above the allowance: 2024-25 and 2025-26: 8.75% / 33.75% / 39.35%. 2026-27: 10.75% / 35.75% / 39.35%. See uk-dividends for the full dividend treatment. _(ITTOIA 2005, s13A)_ ### 5.5 Marriage Allowance [T1] - **Marriage allowance** — Transfer GBP 1,260 from spouse with income below PA to basic-rate spouse. Reducer = GBP 252 (always at 20%, even for Scottish taxpayers). Recipient must NOT be higher/additional rate. Unchanged across all three years. _(ITA 2007, s55B)_ ### 5.6 Basic Rate Band Extension [T1] - **Basic rate band extension** — Extended by: gross pension contributions (relief at source) + grossed-up Gift Aid donations. Example: GBP 4,000 gross pension = basic rate band becomes GBP 41,700. Unchanged across all three years. _(ITA 2007, s10)_ ### 5.7 Payments on Account [T1] - **Payments on account** — Required if prior year SA liability > GBP 1,000 AND less than 80% deducted at source. POA1: 31 January (50% of prior year). POA2: 31 July (50%). Balance: 31 January following year. Mechanism unchanged across all three years. _(TMA 1970, ss 59A-59B)_ ### 5.8 Filing and Penalties [T1] - **Filing deadlines and penalties** — Online deadlines: 2024-25 return: 31 January 2026; 2025-26 return: 31 January 2027; 2026-27 return: 31 January 2028. Late filing: GBP 100 immediate, then GBP 10/day after 3 months, then 5% of tax at 6 and 12 months. Late payment: 5% at 30 days, 6 months, 12 months. _(TMA 1970, ss 8-12, 93, 97)_ ### 5.9 High Income Child Benefit Charge (HICBC) [T1] - **HICBC rule** — Applies from 2024-25 onwards with a tapered range of GBP 60,000 to GBP 80,000 adjusted net income (reform enacted by Finance Act 2024). Charge = 1% of child benefit for every GBP 200 of income between GBP 60,000 and GBP 80,000. At GBP 80,000+: 100% claw-back. Thresholds unchanged in 2025-26 and 2026-27. _(ITEPA 2003, ss 681B-681H (as amended by FA 2024))_ ### 6.1 Personal Allowance Taper Planning [T2] Pension contributions and Gift Aid can reduce adjusted net income below GBP 100,000 to restore the PA. Legitimate planning strategy. Flag for reviewer to confirm contribution amounts are within annual allowance. ### 6.2 High Income Child Benefit Charge -- Cross-Year Planning [T2] For taxpayers in the GBP 60,000-80,000 taper zone, the effective marginal rate including HICBC can exceed 60%. Cross-year planning (timing of bonus income, pension contributions to reduce ANI) is materially valuable. Flag for reviewer. ### 6.3 Reducing Payments on Account [T2] Client can apply (SA303) to reduce POAs if they expect lower liability. If estimate is too low, HMRC charges interest from original due date. Flag before reducing. For the 2025-26 -> 2026-27 transition, POAs for 2026-27 will be based on 2025-26 liability -- consider whether the 2026-27 dividend/savings rate increases will materially raise the actual liability above POA estimates. ### 6.4 Pension Annual Allowance [T2] - **Pension annual allowance** — GBP 60,000 standard. Tapers to GBP 10,000 for adjusted income over GBP 260,000. 3-year carry forward of unused allowance available. Excess triggers annual allowance charge at marginal rate. Flag for specialist review if near limits. _(FA 2004, ss 188-195)_ ### 6.5 Multiple Income Sources Band Allocation [T2] When savings and dividends push income across rate band boundaries, the interaction of PSA, dividend allowance, and band extensions can be complex. Flag for reviewer to verify computation. Especially important for 2026-27 given the divergence of dividend, savings, and non-savings rates. ### 6.6 2026-27 Savings and Property Income Rate Confirmation [T2] The Autumn Budget 2025 announced rate increases on savings and property income from 6 April 2026, expected to mirror the 2pp uplift on basic and higher bands. The specific rates are TBC pending Finance (No. 2) Bill 2024-26 / Finance Bill 2026 enactment. Flag any 2026-27 return with material savings or property income for reviewer; do not finalise until rates are confirmed in legislation. ## Section 7 -- Excel Working Paper Template SA100 TAX COMPUTATION -- Tax Year [SELECT: 2024-25 / 2025-26 / 2026-27] A. INCOME A1. Employment income (P60 gross) ___________ A2. Benefits in kind (P11D) ___________ A3. Self-employment profit (from SA103) ___________ A4. Savings income (bank interest) ___________ A5. Dividend income ___________ A6. Pension income ___________ A7. Property income (from SA105) ___________ A8. Other income ___________ A9. TOTAL INCOME ___________ B. DEDUCTIONS FROM TOTAL INCOME B1. Trading losses (sideways relief) ___________ B2. Gross pension contributions (for ANI) ___________ B3. Gift Aid (grossed up, for ANI) ___________ B4. Adjusted net income ___________ C. PERSONAL ALLOWANCE C1. Standard PA 12,570 C2. Taper reduction (if ANI > 100,000) ___________ C3. Available PA ___________ D. TAXABLE INCOME D1. Non-savings taxable ___________ D2. Savings taxable ___________ D3. Dividend taxable ___________ D4. Total taxable ___________ E. TAX COMPUTATION E1. Tax on non-savings (rUK or Scottish) ___________ E2. Tax on savings (with PSA + starting rate) ___________ Rates: 2024-25 & 2025-26 = 20/40/45 2026-27 = TBC (expected 22/42/45) [FLAG] E3. Tax on dividends (with allowance) ___________ Rates: 2024-25 & 2025-26 = 8.75/33.75/39.35 2026-27 = 10.75/35.75/39.35 E4. Total income tax ___________ E5. Less: tax reducers (MA, EIS, etc.) ___________ E6. Income tax charged ___________ E7. Plus: HICBC (if ANI > 60,000) ___________ E8. Less: PAYE deducted ___________ E9. Less: tax on savings at source ___________ E10. Less: payments on account ___________ E11. TAX DUE / (REFUND) ___________ F. CLASS 4 NIC (from SA103) ___________ G. TOTAL DUE (E11 + F) ___________ REVIEWER FLAGS: [ ] Tax year selected and applied consistently? [ ] Scottish or rUK rates confirmed? [ ] PA taper checked? [ ] Income ordering correct (non-savings > savings > dividends)? [ ] Marriage allowance eligibility verified? [ ] HICBC computed if ANI > 60,000? [ ] For 2026-27: dividend rates updated to 10.75/35.75/39.35? [ ] For 2026-27: savings/property rates confirmed against enacted Finance Bill 2026? [ ] All T2 items flagged? ## Section 8 -- Bank Statement Reading Guide **Bank statement reading guide** | Item | What to Look For | | --- | --- | | Undeclared bank interest | INTEREST PAID lines on personal account | | Dividends received | DIVIDEND lines, share platform payouts | | Rental income | Regular credits from tenants | | Pension income | Monthly credits from pension providers | | Gift Aid payments | Debits to charities | | Pension contributions | Debits to SIPP providers | | Student loan repayments | SLC deductions (informational only -- collected via PAYE) | ## Section 8 -- Bank Statement Reading Guide SA100 is primarily compiled from official documents (P60, P11D, interest certificates, dividend vouchers) rather than raw bank statements. However, bank statements may be needed to identify: ## Section 9 -- Onboarding Fallback If the client cannot provide all documents immediately: 1. Confirm which tax year(s) the engagement covers (2024-25, 2025-26, and/or 2026-27) 2. Start with P60 and any SA103 computation 3. Ask for bank statements to identify savings interest and dividends 4. Apply conservative defaults 5. Generate working paper with flags 6. Present questions: ``` ONBOARDING QUESTIONS -- UK INCOME TAX (SA100) 0. Which tax year? (2024-25 prior / 2025-26 current / 2026-27 from April 2026) 1. Are you a Scottish taxpayer? (main residence in Scotland) 2. Employment income -- do you have your P60 and P11D? 3. Self-employment -- have you completed your SA103? 4. Bank interest received in the year? 5. Dividends received in the year? 6. Pension income (state and/or private)? 7. Rental income? 8. Pension contributions made (personal, not workplace)? 9. Gift Aid donations made? 10. Married/civil partner -- is marriage allowance being claimed? 11. Payments on account already made for the year? 12. PAYE tax deducted (from P60)? 13. Child benefit received? (HICBC if ANI > GBP 60,000) ``` ### Key Legislation **Key Legislation table** | Topic | Reference | | --- | --- | | Income categorisation | ITA 2007, ss 6-22 | | Personal allowance | ITA 2007, s35 | | PA taper | ITA 2007, s35(4) | | Basic rate band | ITA 2007, s10 | | Savings allowance | ITA 2007, ss 12A-12B | | Dividend allowance | ITTOIA 2005, s13A | | Dividend rates 2026-27 onwards | Finance (No. 2) Bill 2024-26 / Finance Bill 2026 (Autumn Budget 2025) -- pending Royal Assent | | Savings & property rate changes 2026-27 | Autumn Budget 2025 announcement -- TBC pending Finance Bill enactment | | Threshold freeze through 2027-28 | Finance (No. 2) Act 2023, s.5 | | Marriage allowance | ITA 2007, s55B | | Scottish rates | Scotland Act 2016 | | Pension relief | FA 2004, ss 188-195 | | Gift Aid | ITA 2007, s414 | | HICBC | ITEPA 2003, ss 681B-681H (as amended by FA 2024) | | Payments on account | TMA 1970, ss 59A-59B | | Filing/penalties | TMA 1970, ss 8-12, 93, 97 | ## Section 10 -- Reference Material ## PROHIBITIONS - **Prohibitions list** — NEVER compute tax without first confirming the tax year (2024-25, 2025-26, or 2026-27) NEVER apply 2025-26 dividend rates to a 2026-27 computation (the ordinary and upper rates change to 10.75% and 35.75%) NEVER finalise a 2026-27 return with material savings or property income before Finance Bill 2026 receives Royal Assent -- flag TBC NEVER compute tax without categorising income as non-savings, savings, or dividends NEVER apply Scottish rates to savings or dividend income NEVER apply marriage allowance if recipient is higher/additional rate NEVER ignore PA taper for adjusted net income above GBP 100,000 NEVER apply PSA to additional rate taxpayers (it is GBP 0) NEVER treat dividend allowance as a deduction -- it is a 0% rate band NEVER apply starting rate for savings if non-savings income exceeds GBP 17,570 NEVER compute POAs based on current year -- always prior year SA liability NEVER advise on non-domiciled or remittance basis -- escalate NEVER present tax calculations as definitive -- always label as estimated ## Disclaimer This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon. The 2026-27 figures in this skill reflect the Autumn Budget 2025 announcements as at the version date. Items flagged "TBC" are pending the enactment of Finance (No. 2) Bill 2024-26 / Finance Bill 2026 and must be reconfirmed against the final legislation before filing. The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes. ## Talk to a verified accountant This skill is a tool, not an engagement. Every taxpayer's situation is different, and the rules in the skill may not match your specific facts. To speak with one of the licensed accountants who verifies skills for your jurisdiction — no liability on either side until you and the accountant sign a formal engagement letter — book a free 30-minute call: → [Book a call](https://calendly.com/openaccountants-info/30min) We'll route you to the named verifier covering your country or state. You can also see the full list of verified accountants at [openaccountants.com/network](https://openaccountants.com/network).