Income Tax is a tax on income. Not all income is taxable and you're only taxed on 'taxable income' above a certain level. However there are reliefs and allowances that can reduce the amount of tax you pay and in some cases mean you've no tax to pay.

Income Tax

Income Tax is the principal form of direct personal taxation in the UK. It takes the form of a proportion of a person's earnings, which is collected by HM Revenue & Customs and passed to the Treasury. It is charged on various sources of income like salaries, pensions, income from self employment and investment income.

Income is classed as Taxable or Non Taxable. Taxable income is the portion of income that is the subject to income tax.

For detailed information on how income tax is calculated, income tax allowances and rates, click here.

Paying Income Tax

If you are employed the tax will be deducted by your employee under the PAYE scheme. If you have received interest, the tax is usually deducted by the payer.

An explanation of the Pay As You Earn (PAYE) system and tax codes is available from MoneyHelper.

Self Assessment

You must always complete and send a tax return if you’re:

  • a self-employed sole trader
  • a partner in a business partnership
  • a company director

Full details of who must send in a form, deadlines and penalties are available at GOV.UK.

Detailed advice on all aspects of Self Assessment is available here.

A step by step guide to complete your Tax Return is available here.

Tax refunds and claiming back overpaid tax

If you have paid too much tax, you can claim it back.

For information on how to claim a tax refund follow this link.

To check the amount of Income Tax you should have paid, follow this link.

If you think you are not paying the correct amount of Income Tax or are due a refund, contact your local Tax Office by following this link. Alternatively if you are self employed or nearly 60 or older follow this link

Problems with Income Tax

To find help with your tax affairs and how to challenge a tax decision, click here.

Common Tax Mistakes

Many people are paying the wrong amount of tax. Click here to see the 10 most common Tax mistakes.

Tax Terminology

For an explanation of frequently used words and phrases used in taxation, click here.

Help with Tax Issues

TaxAid is a charity that can help you understand the tax system, pay the correct amount of tax and resolve any issues. They can help with most tax issues affecting individuals, sole traders and partnerships.  They have in-house expertise in many specialist areas, including non-disclosure cases and International tax issues for those who are about to leave or have just arrived in the UK. 

Tax help for older people is a service provided by Tax Volunteers, a UK registered charity, that provides free, independent and expert advice and help for older people on lower incomes (£20,000 gross a year or less).

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