4. Work out if you need to pay Income Tax

To work out if you should be paying Income Tax, follow these steps.

  1. Add up all your taxable income, including taxable state benefits.

  2. Work out your tax-free allowances.

  3. Take your tax-free allowances away from your taxable income.

If there’s anything left, you’re a taxpayer. Contact the Income Tax helpline if you’re not already paying tax.

If there’s nothing left, you shouldn’t be paying tax and may be due a refund.