Benefits and taxes - National insurance and taxes
Because there are several different taxes and contributions, it can all seem a bit confusing. On this page, we've split them up to try and make this a little easier. At the top of the page, you'll find out about the taxes and contributions you'll pay if you work for someone else or for a company, along with taxes that apply to anyone. Below these, you can find out about the taxes and contribution rules you'll have to follow if you're self employed (if you work for yourself). The final section of the page has links that can help you if you're running a small limited company.
Personal taxes and contributions
When you work for someone else (an employer) you will recieve your pay after tax and National Insurance (NI) contributions have been deducted. Understanding how much these should be, how they're worked out and how to identify them on your pay slips are important steps in making sure you get the right pay.
If you sell something that has gone up in value, usually something big like a house or car, you could have to pay Capital Gains Tax. Inheritance tax can affect any money or property you leave to others when you die. You can find out more about these less well known taxes by following the links below.
Everyone pays Value Added Tax (VAT) when they buy things, but do you know which things you pay VAT on? Or how much VAT is on different things?
Self employed taxes and contributions
Being self employed doesn't mean you can avoid taxes and NI. You still have to pay the right amounts but the way these are worked out and how you pay are a little different. These links will help you find out more.
Taxes and contributions for small companies
Limited companies also have to pay taxes. They are also responsible for collecting taxes from the people that work for them through their payroll, as well as possibly from customers as VAT. These links give you more information.