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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.


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:

Contact Tax Help for Older People or HM Revenue and Customs (HMRC) for further information about which types of income are taxable and non-taxable.


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. This tax-free amount starts to reduce if your income exceeds £100,000. Some people are entitled to other tax-free allowances as well, such as Married Couple’s Allowance and Blind Person’s Allowance.


What should I do next?

Use the HMRC tax calculator

It’s important to check you’re paying the right amount of Income Tax. HMRC's tax calculator can help you check if you’re being incorrectly taxed.

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For more information call Age UK on 0800 055 6112

 

Last updated: Sep 11 2018

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