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The different types of tax

Income Tax on earnings, pensions and benefits

You pay Income Tax on:

As well as paying Income Tax on your wages and on income from self-employment, you also have to pay National Insurance contributions (NICs).

If you're an employee, your employer operates PAYE (Pay As You Earn) and deducts tax and NICs from your wages. If you're self-employed you'll be responsible for paying your own tax and NICs and filling in your Self Assessment tax return.

• More on Income Tax and how to pay

• More on National Insurance

Income Tax on savings and investments

You pay Income Tax on most of the income you get from your savings and investments. This includes:

• Tax on bank and building society accounts

• Tax on UK dividends

• Tax on rental income

Tax on certain types of transaction

You may have to pay tax when you buy or sell things or give them away, for example:

• More on Capital Gains Tax

• More on Stamp Duty

Tax on goods and services

When you buy goods and services, there are various taxes you may have to pay, like:

Tax for local services

As well as paying tax to pay for public services you may have to pay Council Tax to help pay for local services like policing and refuse collection.

The amount of Council Tax you pay depends on the 'valuation band' your home is in and the Council Tax rates set by your local council.

For more information on Council Tax and how you pay it read follow the link below.

• Council Tax - who pays and how much (home and community section)

More useful links

• Working and paying tax

• Tax on savings and investments

• Self Assessment - your tax return

• Introduction to tax for small businesses from Business Link Opens new window

Useful contacts

• Money, tax and benefits contacts