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Taxable income includes:

  • income from full, part-time, and temporary employment - if you get perks or benefits from your employer these may also be taxable
  • profits from self employment after the deduction of allowable expenses
  • State Pension 
  • personal or company pensions 
  • retirement annuity 
  • bank and building society interest not including Individual Savings Accounts (ISAs) 
  • National Savings and investments accounts and bonds 
  • dividends on company shares - not including dividend income from ISAs 
  • income from a lodger in your own or family home if more than £4,250 a year or £2,125 if split jointly
  • income from a second property 
  • pensioner bonds 
  • trust income 
  • chargeable event gains from life insurance policies 
  • income from outside the UK

Non-taxable income includes:

  • Child Tax Credit (CTC) and Working Tax Credit (WTC) 
  • income from tax-free national savings and investments such as a savings certificate 
  • income from a scholarship, exhibition, bursary, or similar educational endowment 
  • interest, dividends, and other income from investments held in a Personal Equity Plan (PEP) 
  • interest, dividends, and bonuses from a Tax Exempt Special Savings Account (TESSA) unless it was closed before the 5 years were up 
  • interest, dividends, and other income from an Individual Savings Account (ISA) 
  • interest and terminal bonuses under Save As You Earn schemes (SAYE) 
  • premium bonds, National Lottery winnings, or gambling prizes 
  • student loan income received through Student Finance England (SFE)
  • Capital Gains income

These lists are not exhaustive.