When do you pay Income Tax? (03-10-2018)
Source: HM Revenue & Customs | 03-10-2018
Income Tax, unsurprisingly, is a tax on income. To be more specific, it is a tax on the income of individuals and non-incorporated businesses. However, there are some types of income where no Income Tax is payable. We have summarised below some of the main income type that are and are not liable to Income Tax.
In most circumstances, taxpayers will not be required to pay tax on all their income, even if it is all taxable because they receive a tax free Personal Allowance (2018-19: £11,850). There are a number of variables that can affect the amount of the Personal Allowance such as claiming the Marriage Allowance, which can increase the amount of the allowance. Taxpayers earning over £100,000 may see their Personal Allowance gradually reduced or wiped out.
The following lists show the main income types that are and are not taxable.
Taxable income includes:
Non-taxable income includes: