Tax in your plan

Landfall applies UK income tax year by year, to each person separately. Earnings, pension withdrawals, State Pension and guaranteed income meet the bands of the nation each person lives in, and interest and dividends stack on top at the UK-wide rates. How each tax is worked out, in more detail.

National Insurance on earnings, capital gains on a taxable account and inheritance tax on the estate are modelled as well. Tax over the plan adds National Insurance and capital gains tax to income tax. Inheritance tax is charged on the estate, and Plan detail shows it separately.

A workplace pension contribution is taken from pay before income tax, or by salary sacrifice. A scheme that takes it from taxed pay and claims relief at source is modelled the same way. Relief at source applies to the personal contributions you add yourself.

The Tax tab shows one person and one year at a time: every part of that year’s income, the rate it met and the income tax it produced. The rows add to that year’s income tax to the pound. In life that tax is taken as the year goes, which How your tax is collected explains.