Guides

135 plain-English guides to UK tax, each with a named author and links to its official sources.

Page 3 of 7 · newest first

Emergency Tax on a Pension Withdrawal: Claim It Back With P55, P53Z or P50Z

Pension providers usually apply an emergency "Month 1" tax code to your first flexible withdrawal, which can over-tax a one-off lump sum by thousands. Here is why it happens, which reclaim form fits your situation, and how long HMRC takes to pay.

By Maria Moisei · 24 Sept 2026

Pensions

Do I Pay Tax on My State Pension? 2026/27 Rules Explained

The State Pension is taxable income, but it is always paid gross with no tax taken off. Here is how the 2026/27 figures stack up against the Personal Allowance, and how HMRC collects any tax due.

By Maria Moisei · 24 Sept 2026

Pensions

Tax on Savings When You're Retired: The £5,000 Starting Rate Most Miss

Retirees can often receive thousands of pounds of interest without paying a penny of tax — because three separate allowances stack. Here is how the £5,000 starting rate for savings works, and how to reclaim tax you should never have paid.

By Maria Moisei · 24 Sept 2026

Income Tax

When Do You Pay 40% Tax? The £50,270 Threshold Explained

Higher-rate tax starts at £50,270 in England, Wales and Northern Ireland — but only the pound above the line is taxed at 40%. Here's the arithmetic, plus what else changes when you cross it.

By Laura Michelle Davis · 24 Sept 2026

Self Assessment

How Far Back Can HMRC Go? The 4, 6 and 20-Year Rules

HMRC can normally reassess four years of tax, stretching to six years for careless mistakes and 20 years for deliberate ones. Here is how each time limit works, and why your own refund window is only four years.

By Laura Michelle Davis · 24 Sept 2026

Savings & ISAs

The £100 Rule: When Your Child's Savings Interest Is Taxed as Yours

If money a parent gave a child produces more than £100 of gross income in a tax year, HMRC taxes all of it as the parent's income — not just the excess. Here is how the £100 rule works, who it catches, and what sits outside it.

By Maria Moisei · 24 Sept 2026

Income Tax

What Is Tronc? Tips, Service Charges and How They're Taxed

A tronc is a separate pot used to share out tips and service charges among staff. Here's how tronc pay is taxed, why National Insurance often isn't due, and what the 2024 tips law entitles you to.

By Damon Smith · 24 Sept 2026

Income Tax

Is Maternity Pay Taxed? SMP, Tax Codes and Refunds

Statutory Maternity Pay is treated as earnings, so it is taxed and National Insured through payroll like wages. Here is how the arithmetic works across a leave year — and why so many parents end up owing HMRC nothing and reclaiming tax they have already paid.

By Damon Smith · 24 Sept 2026

Income Tax

How Much Tax Have I Paid? Find It on Your P60, Payslip or HMRC App

The exact income tax you paid last year is printed on your P60; the running total for this year is on your latest payslip. Here is where to look, and how to check the figure is right.

By Damon Smith · 24 Sept 2026

Self Assessment

HMRC Scam Texts, Calls and Emails: How to Spot a Fake

HMRC never texts or emails you a link to claim a tax refund, and never demands payment in vouchers or crypto. Here is how to spot an HMRC scam, check a P800 refund is genuine, and report it.

By Laura Michelle Davis · 24 Sept 2026

Income Tax

Expensive Car Supplement: Who Pays It and the New EV Threshold

The expensive car supplement adds hundreds of pounds a year to road tax on cars with a list price over £40,000 — and since April 2025 electric cars are caught too. Here's who pays, for how long, and how the new EV threshold works.

By Damon Smith · 24 Sept 2026

Income Tax

1257L M1 and W1: What 'Month 1' Means on Your Payslip

A 1257L M1 or W1 tax code gives you a twelfth (or a fifty-second) of your Personal Allowance each payday and ignores everything you earned earlier in the year. Here's why it appears, whether it costs you money, and how to get back onto a cumulative code.

By Damon Smith · 24 Sept 2026

Benefits

Child Benefit After 16: When It Continues and When It Stops

Child Benefit does not automatically stop at 16 — it can run to a child's 20th birthday if they stay in approved full-time education or training. Here is what counts, what does not, and the deadlines that decide whether your payments keep coming.

By Maria Moisei · 24 Sept 2026

Income Tax

Is Statutory Sick Pay Taxed? SSP Rates and Rules 2026/27

Statutory Sick Pay is treated as normal earnings, so income tax and National Insurance come off through payroll. Here is how SSP is taxed in 2026/27, what changes from April 2026, and why long spells of sickness often trigger a refund.

By Damon Smith · 24 Sept 2026

Income Tax

National Insurance Category Letters: What A, B, C, H, M and Z Mean

Your National Insurance category letter decides how much NI you and your employer pay. Here is what A, B, C, H, M, Z and the rest mean in 2026/27, with the rates for each.

By Laura Michelle Davis · 24 Sept 2026

Savings & ISAs

Do You Pay Tax on ISA Withdrawals? Flexible ISAs and the Rules

ISA withdrawals are completely tax-free, whatever the amount and whenever you take it. The catch is whether taking money out costs you allowance — and that depends on whether your ISA is flexible.

By Maria Moisei · 24 Sept 2026

Savings & ISAs

Junior ISA 2026/27: Allowance, Tax and What Happens at 18

A Junior ISA lets you put up to £9,000 a year away for a child with no tax on the interest, dividends or gains. Here is how the allowance works, who can pay in, and exactly what happens on their 18th birthday.

By Maria Moisei · 24 Sept 2026

Capital Gains

Employee Share Options Tax: EMI, SAYE and Unapproved Options

EMI, SAYE and unapproved share options are taxed in completely different ways. Here is what you pay at grant, at exercise and on sale in 2026/27, with worked examples.

By Peter Cunniffe · 24 Sept 2026

Income Tax

Do You Pay Tax on Gambling Winnings in the UK?

UK gambling winnings are completely tax-free — no income tax, no CGT, nothing to declare. The catch is what happens next: interest, dividends and gifts from a big win can all be taxed.

By Maria Moisei · 24 Sept 2026

Income Tax

Emergency Tax Codes Explained: Why You Are on One and How to Get Your Money Back

An emergency code ends W1, M1 or X and taxes you as though every pay period were your first. On a salary it usually corrects itself within 35 days. On a first pension withdrawal it can take thousands you can reclaim on a P55.

By Damon Smith · 6 Sept 2026

Deadlines, rate changes and what to claim

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