Income Tax: In most countries income tax is progressive on successive slices of income, so that the more you earn the higher the incremental rates of tax you pay. In many countries, everyone is allowed to make a certain amount of income before any tax is payable. If your income in a tax year is below these thresholds, you are not liable for income tax. In some circumstances, where tax has been deducted at source, you will be able to reclaim tax already paid. For earnings above your personal allowance, your income tax liability will go up in bands and vary according to whether the income is from employment, share dividends or interest. The lowest rate is 10% and the highest is 40%.Inflation The overall general upward price movement of goods and services in an economy. Over time, as the cost of goods and services increase, the value of the pound is going to fall because a person won't be able to purchase as much with that pound as he/she previously could.

 

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Income Tax: In most countries income tax is progressive on successive slices of income, so that the more you earn the higher the incremental rates of tax you pay. In many countries, everyone is allowed . . . View Full Definition

Taxable Pay: (gross salary less pension contributions less allowances) is used by the employer to calculate a person's income tax (according to his/her notice of coding) which is passed to the Inland Rev . . . View Full Definition

Provision For Income Taxes: An amount on the P & I statement that estimates a company's total income tax liability for the year.

Earnings Before Interest And, Taxes (EBIT): Net income before income tax expense and interest expense. This is a popular measure for comparing the earning power of companies, because it eliminates the impact of capital structure and e . . . View Full Definition