In the United Kingdom, employees do not have to pay tax on benefits and expenses covered by concessions or exemptions such as:
- Income from tax-exempt accounts, like Individual Savings Accounts (ISAs) and National Savings Certificates
- Dividends from company shares under your dividends allowance
- Necessary business expenses can be deducted from employment income and are not taxable if paid for or reimbursed by the employer
- Some state benefits
- The most common state benefits you do not have to pay Income Tax on are:
- Attendance allowance
- Bereavement support payment
- Child benefit
- Child tax credit
- Disability Living Allowance (DLA)
- Free TV licence for over-75s
- Guardian’s allowance
- Housing benefit
- Income support. Though you may have to pay tax on income support if you’re involved in a strike
- Income-related Employment and Support Allowance (ESA)
- Industrial injuries benefit
- Lump-sum bereavement payments
- Maternity allowance
- Pension credit
- Personal Independence Payment (PIP)
- Severe disablement allowance
- Universal credit
- War widow’s pension
- Winter fuel payments and Christmas bonus
- Working tax credit
- The most common state benefits you do not have to pay Income Tax on are:
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