Taxable and non-taxable income at a glance
Not all income is taxable. You can also receive some normally 'taxable'
income 'tax-free'. The lists below will help you to work out what income
counts as 'taxable' and 'non-taxable' - and what taxable income you can
receive tax-free.
On this page:
What counts as taxable income?
Income from employment
- Includes income from full, part-time and temporary employment.
- If you get perks or benefits from your employer these may also be
taxable.
Taxable company benefits
- learn more
Income from self employment/partnerships
Profits you make from working for yourself as a sole trader or partner.
Pension income
- State Pension.
- Personal or company pensions.
- Retirement annuity.
Interest on savings
- Bank and building society interest - not including Individual Savings
Accounts (ISAs)
- National Savings and Investments accounts and bonds.
Investment income
Dividends on company shares - not including dividend income from ISAs.
State benefits
The most common taxable state benefits are:
- Carer's Allowance
- Jobseeker's Allowance
- Employment and Support Allowance - 'contribution' based (if you have
paid enough National Insurance contributions)
- Incapacity Benefit - from week 29
- Weekly Bereavement Allowance
Read the full list of taxable
state benefits
Rental income
- From a lodger in your only or family home if more than
£4,250 a year (£2,125 if split jointly).
- From a second property.
Other taxable income
- Pensioner bonds.
- Trust income.
What counts as non-taxable income?
State benefits
The most common non-taxable state benefits are:
- Disability Living Allowance
- Attendance Allowance
- Lump sum Bereavement Payments
- Pension Credit
- Free TV licence for over 75s
- Winter Fuel Payments and Christmas Bonus
- Housing Benefit
- Employment and Support Allowance - income based (if you haven't
paid enough National Insurance contributions)
- Income Support - certain payments
- Child Benefit
- Guardian's Allowance
- Maternity Allowance
- Industrial Injuries Benefit
- Severe Disablement Allowance
- War Widow's Pension
- Young Person's Bridging Allowance
Read the full list of non-taxable
state benefits
Interest on savings
- All ISAs.
- Savings Certificates.
Rents
- First £4,250 a year from a lodger in your only or family home - £2,125
if split jointly.
Tax Credits
- Working Tax Credit.
- Child Tax Credit.
Premium Bonds
Wins from Premium Bonds are free from UK Income Tax and Capital Gains
Tax.
If you have income that is not shown above
If you have income that is not shown above, please contact HM Revenue & Customs (HMRC) by following the link below.
Contact HMRC
Taxable income that you can receive tax-free
Almost everyone is entitled to receive a certain amount of taxable income
tax-free during the tax year, this is called the Personal Allowance.
Personal Allowance
If you're certified blind and on a local authority register of blind
persons, or if you live in Scotland or Northern Ireland and you are unable
to perform any work for which eyesight is essential, you can claim Blind
Person's Allowance. As with the Personal Allowance, this is an amount
of taxable income you can receive during the tax year without paying tax.
Blind Person's Allowance
More useful links
Income Tax allowances and
reliefs