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Income Tax Law

Income Tax Laws UK Guide

This section has information on all matters of Income Tax laws and personal taxation. It also includes guidance on tax rates, refunds, allowances, and tax codes.

INCOME TAX RULES: Our taxes generate one of the biggest revenues for central government in the United Kingdom.

Tax revenue also comes in from National Insurance (NI), Value Added Tax, Corporation Tax, and excise duties.

The United Kingdom fiscal year of 2016/17 showed the total government revenue to be around £716 billion. That equated to more than 36 per cent of the country's Gross Domestic Product (GDP).

Local government in England and Wales collect further revenue. It comes via business rates, Council Tax, and the fees from on-street parking.

This may not be welcome news for all citizens living in Great Britain. Even so, very few will avoid paying personal or business tax in some form or another. Browse through the list of tax laws and click through from any topic for further help and advice.

A Guide to Income Tax and Taxation

HMRC Blind Person's Tax Allowance GuideBlind Person's Allowance

ALLOWANCE FOR BLINDNESS: The Blind Person Tax Allowance means severely sighted people can earn more money before tax. Check if you qualify and how to claim the concession.


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

COMPANY CARS: Employers need to work out the taxable value (BIK rate) for reporting to HM Revenue and Customs. It applies to 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. An exception would be traveling to temporary places of work.

As an employer, you can calculate the taxable value of a company car yourself. You can use commercial payroll software or the HMRC car and car fuel benefit calculator. You can also work out the value 'manually' using the P11D working sheet 2.

TAXABLE VALUES: 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. It also applies to 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: Check if you would get considered as an employer of your au pair, nanny, or childcare worker. The section explains the rules for employing someone to work in your home.


Get Help with Tax GuideGet Help with Tax

TAX CODES: Check out a list of tax codes and what they mean when employers work them out. Check what you should do any time you think your 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 the current tax allowance for citizens living in the United Kingdom. Find out how tax bands and thresholds work for Personal Allowances.

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 might need to be paying tax on dividends paid to you through shares you own in a company. How much you get taxed on dividend payments depends most on your taxable income.


Individual Savings Accounts (ISAs) GuideIndividual Savings Account

ISA RULES: Find out how Individual Savings Accounts work and what types of ISA you can invest in. Check how to optimise the tax-free allowance, withdraw money, and transfer ISAs.

LIFETIME ISA: There are several reasons to invest in a Lifetime ISA. But, the big advantage of Lifetime ISAs is the tax free saving for a first home and for later life.


Marriage Allowances and Tax Breaks GuideMarriage Allowances

MARRIAGE TAX ALLOWANCE: Registration for the Marriage Allowance first opened in April 2015. The tax break 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. But, some 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 the current year.


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 Reliefs

INCOME TAX RELIEFS: There are several different ways for businesses to claim Income Tax reliefs. Find out how self-employed workers can either pay less tax or get Income Tax back.

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