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Income Tax

What is Income Tax?

Income Tax is a tax you pay on certain types of income, such as:

  • Employment income
  • Self-employment profits
  • Rental income
  • Some state benefits
  • Employment benefits
  • Interest on savings
  • Dividends

You don’t pay tax on things like:

How You Pay Income Tax

PAYE “Pay as You Earn”

If you are employed, your employer will deduct your tax every time they pay you. You’ll be paid after tax and your employer is responsible for paying your tax to HMRC.

 Self-Assessment Tax Return

If you are self-employed or have received other types of untaxed income, then you’ll need to submit a self-assessment tax return form declaring your income and then pay your tax.