Income tax

Income Tax is a tax you pay on your income. You do not have to pay tax on all types of income.

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
• interest on savings over your savings allowance

You do not pay tax on things like:

• the first £1,000 of income from self-employment - this is your 'trading allowance'
• the first £1,000 of income from property you rent (unless you're using the Rent a Room Scheme)
• income from tax-exempt accounts, like Individual Savings Accounts (ISAs)and National Savings Certificates
• dividends from company shares under your dividends allowance
• some state benefits
• premium bond or National Lottery wins
• rent you get from a lodger in your house that's below the rent a room limit

For more information about Income Tax please view the GOV.UK website.