What Is Income TaxThe first income tax was introduced in Great Britain in 1799, to fund the war against the French forces under Napolean. Income Tax is a “temporary tax” and expires every year on the 5th April and Parliament has to reapply it by an annual Finance Act. The PAYE (Pay As You Earn) system was introduced in 1944 as it was thought to be a more efficient tax collection system.

What Do I Have To Pay Income Tax On

Income tax is applicable to taxable income which includes the following: