Income tax banding

so i dont 100% understand all of this hence why i cited the entire thing but it is clear that with the current state of our project that we need not worry.

we would undoubtedly fall into the first band which is un-taxable.

"How much Income Tax you pay

After your allowable expenses and any tax-free allowances have been taken into account, the amount of tax you pay is calculated using different tax rates and a series of tax bands.

Income Tax rates 2011-12 by tax band and type of income

Income Tax band	Income Tax rate on non savings income	Income Tax rate on savings	Income Tax rate on dividends
£0 to £2,560 Starting rate for savings	Not available	10%	Not applicable - see basic rate band
£0 to £35,000 Basic rate	20%	20%	10%
£35,001 to £150,000 Higher rate	40%	40%	32.5%
Over £150,000 Additional rate	50%	50%	42.5%

Because the rate of Income Tax you pay on savings is worked out after any non-savings income has been taken into account, if your non-savings income is less than the starting rate for savings limit (£2,560) - or if savings and investments are your only source of income - your savings income will be taxed at the 10 per cent starting rate up to the limit. But if you already have non-savings income which takes you above the starting rate limit, all of your savings will be taxable at the 20 per cent basic rate, the 40 per cent higher rate or the 50% additional rate, depending on your total income.

Remember, the tax band applies to your income after your tax allowances and any reliefs have been taken into account - you're not taxed on all of your income.

'Non savings income' includes income from employment or self-employment, most pension income and rental income.

'Dividends' means income from shares in UK companies.

Savings and dividend income is added to your other taxable income and taxed last. This means you pay tax on these sorts of income based on your highest Income Tax band."

(http://www.hmrc.gov.uk/incometax/basics.htm#6)