Income Tax is a tax you pay on your income. 

You do not have to pay tax on all types of income.

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You pay tax on things like:

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•  benefits you get from your job

• money you earn from employment

• some grants, including the Self-Employment Income Support Scheme, the Small Business Grant Fund, the Retail, Hospitality and Leisure Grant Fundand the Coronavirus Job Retention Scheme

• most pensions, including state pensions, company and personal pensions and retirement annuities

• rental income (unless you’re a live-in landlord and get less than the rent a room limit)

• income from a trust

• interest on savings over your savings allowance

• profits you make if you’re self-employed - including from services you sell through websites or apps

• some state benefits

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You do not pay tax on things like:

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• trading allowance, the first £1,000 of income from self-employment 

• £1,000 of income from property you rent 

• rent you get from a lodger in your house that’s below the rent a room limit

• income from tax-exempt accounts, like Individual Savings Accounts (ISAs)and National Savings Certificates

• dividends from company shares under your dividends allowance

• some state benefits

• premium bond or National Lottery wins