Income Tax

Income Tax is the tax that is paid on earnings, which can include not only your wages, but rental income, and profits made though being self-employed. In the UK, people have an annual tax-free allowance, which they do not have to pay tax on. Once that threshold has been reached, income tax is paid on all other income. Currently, there are three income bands in the UK, each attracting different tax rates – the tax rate increases as the level of income increases.

See also: