‘Income Tax’ is a tax you pay on your income and your annual Income Tax bill is calculated using what is known as your ‘taxable earnings’, including salaries, benefits in kind, rents and pensions.
You don’t have to pay tax on all types of income and it’s possible to reduce the figure used to work out the tax due using fully HMRC-approved measures such as pension contributions, payroll giving, Gift Aid and salary exchange.
Income Tax allowances and reliefs
Most people in the UK get a ‘Personal Allowance’ which is the amount of income you can have before you pay tax.
The amount of tax you pay can also be reduced by tax reliefs if you qualify for them and there are a range of investments such as ISAs that are tax-efficient – see our Tax on Investments page.
We can help you plan an efficient tax strategy and can also work with your accountants to streamline it as much as possible.
Past performance is not a guide to future returns. The value of investments can fall as well as rise. Investors may get back less than invested.