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.
What do I have to pay income tax on?
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 pensions under the War Pensions Scheme and Armed Forces Compensation Scheme)
- interest from savings accounts
- dividends from shares
- income from lettings
- some benefits, such as Carer’s Allowance and Statutory Sick Pay
- income from a trust.
Do I have to pay tax on all my income?
You do not have to pay tax on:
- Pension Credit
- Universal Credit
- Attendance Allowance
- Disability Living Allowance
- Personal Independence Payment
- Winter Fuel Payment
- pensions administered under the War Pensions Scheme and Armed Forces Compensation Scheme
- lottery or Premium Bond wins
- industrial injuries benefits
- Individual Savings Accounts (ISAs)
- some National Savings and Investments products.
How much income tax should I be paying?
We all have a personal tax-free allowance representing the amount of income you can receive before paying tax. Our factsheet lists how much the allowances are this year and explains how to work out the amount of tax you should be paying.
For more information call Age Cymru Advice on 0300 303 44 98