The information on this website is for general guidance and is not financial advice. If you need more information or personal advice, please contact an Independent Financial Adviser.
HM Revenue & Customs collects tax to pay for public services. Each year the Chancellor’s Budget sets out how much it will cost to provide these services and how much tax is needed to pay for them.
What taxes might I pay?
Key taxes that you may have to pay include:
- Income Tax
- National Insurance
- Capital Gains Tax
- Inheritance Tax
- Stamp Duty
- Value Added Tax (VAT)and certain other duties
- Income Tax
Income Tax is a tax on your income but not all of it is taxable. You are allowed a certain amount of income each year without paying tax on it at all. This is called your Personal Allowance, which is usually around £10,000. If you are aged over 65 you may have a larger Personal Allowance.
Your income is assessed over the ‘tax year’ which runs from 6 April to the following 5 April. When your income is more than your Personal Allowance you will need to pay tax. For more details on the current tax rate and allowances visit www.gov.uk.
What is Taxable Income?
- earnings from employment
- earnings from self-employment
- most pensions income (State, company and personal pensions)
- interest on most savings
- income from shares (dividends)
- rental income
- income paid to you from a trust
- taxable benefits