Income Tax Definition Uk

Income tax allowances and reliefs most people in the uk get a personal allowance of tax free income. Income tax is a certain percentage of your income that you have to pay regularly to the. Income tax a direct tax levied by the government on the income wages rent dividends received by households in order to raise revenue and as an instrument of fiscal policy income tax is usually paid on a progressive scale see progressive tax in the uk the inland revenue assesses and collects taxes on behalf of the government for a fiscal year starting 6 april to the following 5 april.