Income tax is a tax levied directly on personal income. To put it simply, income tax is the tax on your earnings. Once your earnings go above your personal allowance you must pay tax on the following sources of income:
- Income from employment
- Income from pensions
- Interest on savings
- Rental income
- Income from a trust
Income tax is a sad fact of life and if you receive income from any of the above sources you may need to file a self-assessment tax return.
Tax Planning advice is not regulated by the Financial Conduct Authority
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