Income tax is the tax paid on many different types of income. You pay income tax on things such as:
- money earned through your job
- profits you make through being self-employed
- some state benefits
- money made from renting out a property or a room in a house
- income from a trust
- interest earned from savings (if this is over a certain amount)
If you live in Scotland, you pay Scottish Income Tax. This money goes to the Scottish Government.