🇬🇧 United Kingdom

Frequently Asked Questions

Straight answers to the questions we hear most about UK income tax.

Do I need to complete a Self Assessment tax return?+
Most PAYE employees don't need to. You typically need to file Self Assessment if you're self-employed, have significant untaxed income (rental, dividends, savings interest), earn over £100,000, or need to claim certain reliefs.
What is a tax code and why does it matter?+
Your tax code tells your employer how much of your income is tax-free before PAYE deductions start. An incorrect tax code is one of the most common reasons people overpay or underpay tax — check yours via your HMRC Personal Tax Account. See our PAYE explainer.
Do I pay tax on savings interest?+
Most people get a Personal Savings Allowance (up to £1,000 for basic rate taxpayers) before savings interest is taxed. Interest within an ISA is always tax-free regardless of amount.
What is the Marriage Allowance?+
If one partner earns below the Personal Allowance and the other is a basic rate taxpayer, the lower earner can transfer a portion of their unused allowance to their partner, reducing the household's total tax bill.
When is the Self Assessment deadline?+
The online filing deadline is 31 January following the end of the tax year, which is also the payment deadline. Paper returns are due earlier, by 31 October.
Do Scotland and Wales have different tax rates?+
Scotland sets its own income tax bands, which differ from the rest of the UK. Wales can vary rates too, though currently mirrors rUK rates. Our calculators reflect rUK (England, Wales, Northern Ireland) rates unless stated otherwise.
What happens if I'm put on an emergency tax code?+
An emergency tax code (often 0T or W1/M1) can result in overpaying tax temporarily, usually when you start a new job without a P45. This typically corrects itself once HMRC has full details, or you can claim a refund directly.
Can I get tax relief on pension contributions automatically?+
Basic rate relief is usually added automatically to your pension pot. Higher and additional rate taxpayers need to claim the extra relief themselves, typically via Self Assessment. See our tax-reducing guide.
GENERAL GUIDANCE

These answers are general educational information, not personalized tax advice. Rules have exceptions based on individual circumstances — verify with an accountant or HMRC before acting.