Income Tax and PAYE

If you’re employed, your employer usually deducts Income Tax and National Insurance through the Pay As You Earn (PAYE) system. It’s important to check your tax code to ensure you’re paying the correct amount.

Self-Assessment for the Self-Employed

If you’re self-employed or have other income not taxed at source, you’ll need to complete a Self-Assessment tax return annually. Keeping accurate records and submitting your return on time helps avoid penalties.

Dealing with Tax Arrears

If you’re struggling to pay your tax bill, contact HMRC as soon as possible. They may offer a ‘Time to Pay’ arrangement, allowing you to pay in installments. Ignoring tax debts can lead to penalties and legal action.

Support for Low-Income Individuals

Organizations like TaxAid and Tax Help for Older People provide free tax advice to those on low incomes. They can assist with understanding tax codes, completing tax returns, and resolving disputes with HMRC.

Tax Credits and Benefits

While tax credits have been replaced by Universal Credit for many, you may still need to address overpayments or disputes. It’s important to respond promptly to any correspondence from HMRC regarding tax credits.