From: Terry Harper 
Newsgroups: uk.finance
Subject: Re: NI payments for non-employed
Date: Wed, 01 Jun 2005 23:43:22 +0100

On Wed, 01 Jun 2005 16:37:07 GMT, Ronald Raygun
 wrote:

>Derek Geldard wrote:
>> 
>> Presumably if you took your sabbatical year starting on 6th of
>> October you would get quite a big income tax rebate, and you would
>> pay less income tax from the time you started working again a year
>> later 'till the next 6th of April . Whereas if you started your
>> sabbatical on 6th of April then you'd get no tax rebate and pay
>> tax at full whack as soon as you started working again.
>
>Indeed, in one case you pay tax on virtually no income for a whole year,
>while in the other you pay tax on roughly half your normal income for
>two years.  Shouldn't be a vast difference, but significant nonetheless,
>given the progressive nature of the tax system, i.e. tax on half your
>income is less than half the tax on the whole income.

There ought to be a considerable difference, because one year's income
is spread over two tax years, with two personal allowances and two
reduced rate bands to take into consideration.
-- 
Terry Harper
URL: http://www.terry.harper.btinternet.com/