1. Overview

Income Tax is a tax you pay on your income. You don’t have to pay tax on all types of income.

This guide is also available in Welsh (Cymraeg).

You pay tax on things like:

  • money you earn from employment
  • profits you make if you’re self-employed - including from services you sell through websites or apps
  • some state benefits
  • most pensions, including state pensions, company and personal pensions and retirement annuities
  • rental income (unless you’re a live-in landlord and get less than the rent a room limit)
  • benefits you get from your job
  • income from a trust

You don’t pay tax on things like:

Income Tax allowances and reliefs

Most people in the UK get a Personal Allowance of tax-free income. This is the amount of income you can have before you pay tax.

The amount of tax you pay can also be reduced by tax reliefs if you qualify for them.