The UK Rules
'Follow the Regulations'
Income Tax

Income Tax Laws

Revenue to the principle tax authority in the United Kingdom - Local Government Association - comes from central government funds and grants.

UK INCOME TAX RULES: As a rule, central government revenues are generated from Income Tax that citizens pay on their income, from National Insurance contributions (NI), corporation tax, fuel duty, and value added tax (VAT).

Local government in England and Wales collects further revenue from payments made via business rates, Council Tax, and the fees from on-street parking.

In the United Kingdom, the fiscal year of 2014/15 showed that the total government revenue was around £650 billion, which equated to 37.7 per cent of the country's Gross Domestic Product (GDP).

The net taxes and National Insurance contributions generated more than £600 billion.

UK Income Tax Rules Guide

Blind Person's Allowance GuideBlind Person's Allowance

WHAT IS ALLOWANCE FOR BLINDNESS? The Blind Person Tax Allowance allows severely sighted people to earn more money before they start to pay Income Tax. This section explains exactly what allowances a blind person will get and how to determine if you are eligible.


Claim a Tax Refund GuideClaim a Tax Refund

TAX REFUNDS: There are several reasons why you might need to claim a tax refund or rebate. Find out how to get money back after paying too much Income Tax.


Calculate Tax on Employees' Company Cars GuideCompany Car Tax

CALCULATE TAX ON EMPLOYEES' COMPANY CARS: Employers need to work out the taxable value (BIK rate) for reporting to HM Revenue and Customs for any company cars or fuel that you make available for private use by your employees. As a rule, 'private use' also includes any journey between home and work by your staff (except travel to temporary places of work).

As an employer you can calculate the taxable value of a company car using commercial payroll software or the HMRC car and car fuel benefit calculator.

You can also work out the value manually on the P11D working sheet 2 if the car was unavailable for at least 30 consecutive days or you were once providing fuel for private use, but then you stopped doing this.

TAXABLE VALUE OF CARS: The taxable value of a car is not the same as its cost. Taxable value depends on the fuel type as well as the level of CO2 emissions for the vehicle and the amount of time it is unavailable during the tax year (e.g. a mechanical fault).


Employing Helpers at Home GuideEmploying Helpers

DOMESTIC HELP LAWS: How to determine the employment status of nannies, childcare workers, au pairs, and other personal assistants who work permanently or part time in your home. If you hire a person to lend a helping hand at your house you need to ensure whether they are an employee.


Get Help with Tax GuideGet Help with Tax

TAX CODES: A guide explaining what tax codes are and how employers work them out. Check what you should do any time you think the tax code is wrong.

TAX HELP: UK taxation can be a little taxing at times. This guide is for those who need some extra help with tax problems and issues with taxes.


Income Tax GuideIncome Tax

TAX OVERVIEW: In simple terms Income Tax is a form of taxation paid on your earnings. Find out how to pay Income Tax and how to ensure you pay the correct amount to HM Revenue and Customs.

LEAVING UK: Some important changes will happen to your tax if you leave the UK to live abroad. Check what steps you must take if you go to work or retire overseas of the United Kingdom.

UK TAX LIVING ABROAD: Check the liabilities of tax on UK income if you live abroad. Find out whether you need to pay tax on income from rental and investments while living overseas.

IF YOU RETURN TO UK: Check the process for tax if you return to the UK after living abroad. Find out what you need to do after coming back to live in the United Kingdom.

IF YOU COME TO LIVE IN UK: Check the basic rules for tax if you come to live in the United Kingdom. Find out how to pay tax on sources of income, make tax returns, and pay National Insurance.


Income Tax Rates and Personal Allowances GuideIncome Tax Rates and Personal Allowances

CURRENT TAX RATES: The guide explains Income Tax rates and Personal Allowances for citizens living in the United Kingdom. Additional information clarifies how tax bands and thresholds work.

CHECK INCOME TAX: Use the government tool to check your Income Tax or Personal Allowance for the current year. You can also estimate your tax for the current year and change the code if it is incorrect.

NI & TAX FOR PENSIONERS: The section explains government National Insurance and tax after State Pension age. Check the age-related tax allowances and how to calculate tax if you continue working.

TAX ON DIVIDENDS: You may need to pay tax on dividends paid to you through shares owned in a company. How much you get taxed on dividend payments depends most on your taxable income.


Marriage Allowances and Tax Breaks GuideMarriage Allowances

MARRIAGE TAX ALLOWANCE: Registration for the Marriage Allowance first opened in April 2015. It is a tax break that allows you to transfer a part of your Personal Allowance to your spouse or civil partner.

Once you apply for a marriage allowance you will receive an email confirming your application. When you apply you need both National Insurance numbers and a method of proving your identity.

MARRIED COUPLE'S ALLOWANCE: MCA is a tax perk for qualifying couples where one partner is over the age of 82. The Married Couple's Allowance is 'restricted' but it could cut 10% off your tax bill this year.


Tax and Pensions GuidePensions

INHERITED PENSION TAX: There may be a liability for tax on a private pension you inherit from someone's death. Find out the procedure for paying taxes after inheriting a private pension.

TAX ON PENSION CONTRIBUTIONS: Personal investments paid into private pensions are tax-free (within set limits). But, similar limits apply to tax relief on private pension contributions.

TAX WHEN YOU GET A PENSION: Many seniors ask us - do you pay tax on your pension payments? The section explains your tax-free allowances and how you pay tax on pensions.


Self Assessment Tax Return GuideSelf Assessment Tax Returns

SELF ASSESSMENT RULES: The Self Assessment helpline section is for anyone who needs some extra guidance. It explains the new Self Assessment tax return rules for 2017.


Income Gained from Selling Services Online GuideSelling Services Online

HOBBY BUSINESS TAX RULES: You might need to pay tax on income gained from selling services online. That is because the 'sharing economy' or a hobby business that you have, may be taxable.


Tax on Foreign Income GuideTax on Foreign Income

UK EXPAT TAX RULES: Information in the section explains UK taxation on money earned abroad. Check whether you need to pay tax on foreign income and investments.


Tax Relief GuideTax Relief for Employees

WORK EXPENSES: Some workers get confused and they will ask: how does tax relief for employees work? The section explains the process of claiming tax relief on expenses bought for work.


Income Tax Laws and Personal Taxation Guide for the United Kingdom