Income Tax

If your income is over a certain amount, you will have to pay Income Tax on it. Not all income is taxable, and there are allowances and reliefs you may be able to claim that can reduce your bill.

What is taxable income?

Not all income counts towards Income Tax. You may have to pay tax on:

  • earnings from employment or self-employment
  • pensions, including State Pension, and annuities (except war pensions)
  • interest from savings accounts
  • dividends from shares
  • income from lettings
  • some benefits like Incapacity Benefit and Employment and Support Allowance (they can be taxable or non-taxable)
  • income from a trust.

You do not have to pay tax on:

  • Pension Credit
  • Disability Living Allowance/Attendance Allowance
  • Winter Fuel Payment
  • war pensions
  • lottery or Premium Bond wins
  • industrial injuries benefits
  • Individual Savings Accounts (ISAs)
  • some National Savings and Investments products.

Contact opens link in new window Tax Help for Older People (TOP) or opens link in new window HMRC for further information about which types of income are taxable and non-taxable.

Should I be paying tax?

We all have a personal tax-free allowance (unless your income exceeds £115,000) which represents the amount of income you can receive without paying tax. Some people are entitled to other allowances as well, like Married Couple’s Allowance and Blind Person’s Allowance.

For further information on income tax, contact HM Revenue & Customs on 0845 300 0627 or visit their website at opens link in new window www.hmrc.gov.uk/incometax

Age NI Advice Line:
0808 808 7575

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