Tax paid on your earnings. Working as an employee, self-employed contractor, earning rent etc are all all forms of income tax that are subject to income tax.
Currently, the basic income tax rate is 20%, increasing to 40% for earnings above and £50,270 and 45% for any earnings above £150,000.
If income is <12,570 then you don’t pay income tax as that’s your personal allowance.
What’s income tax paid on?
It’s usually paid through PAYE by your employer. You might also need to file a self assessment tax return so it can be declared and tax can be paid.
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