Income tax

No matter how we feel about it we all have to pay taxes -  without this money the Government couldn't pay for public services such as education. welfare benefits, pensions, roads and the health service. But the amount you pay depends on how much you earn - so if you are on a low income your tax bill will be much lower than someone earning more.

 

If it is your first job after leaving education your employer will ask you to fill in form P46 to help work out the right amount of tax you should be paying. Everyone has a tax allowance - an amount of money they can earn each year before they pay tax and tax is only paid on income above this amount.  

 

Employers have to deduct tax directly from your pay - if you feel you are being taxed more than you should be you can contact HMRC  who will look into it and refund you any tax overpaid.

 

As well as income tax you'll also have to pay National Insurance.