Paying Tax

Whether you're working, studying or claiming benefits, you're likely to be paying tax in one way or another. 

What is tax?

Tax is the way that the government raises money to spend on public services such as hospitals, schools and building new roads and houses.  The rates for the different taxes are set by the Chancellor of the Exchequer every year in the Budget statement. 

Some of the taxes you may have to pay are:

• Income Tax
• National Insurance
• Council Tax
• Value Added Tax (VAT)
• Vehicle Tax
• Air Passenger Tax

When you start work:

• Find out what tax band you will be in. This depends on your earnings and affects how much income tax you pay.
• Be aware that you will also have to pay National Insurance.
• If you have a second job or make money from a different source from your main job, you will have to pay tax on any extra earnings. Make sure you find out how this works otherwise you could be left with a tax bill that you didn't account for and possibly a fine if not paid on time.
• Get in touch with your local tax office if you need a tax code or you have any questions. You employer can also advise you.
• Keep your P60's. Provided by your employer, your P60 outlines your total earnings for the year including any bonuses and overtime.

Useful Websites

Advice Guide

Directgov