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Income tax

Expert commentary and practical guidance from ICAEW related to income tax in the UK personal tax regime.

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Economy explainers: what is income tax?

Political debates often discuss income tax, but what is it? ICAEW experts describe what income tax covers, how it is calculated and what the marginal rate is.
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MTD income tax

Making Tax Digital (MTD) is being phased in for income tax from April 2026. ICAEW's Tax Faculty outlines how the system is likely to work and the progress of the testing.
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TAXguide 09/18: simple assessment

In TAXguide 09/18 Caroline Miskin explains what a simple assessment is and how HMRC is using them to reduce the number of taxpayers from self assessment. Read a summary here, Tax Faculty members can download the full guide.
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TAXguide 04/18: Residence and domicile

In TAXguide 04/18 Lisa Spearman provides an introduction to the taxation issues which may be in point when considering the non UK aspects of a client’s affairs. Read a summary here, Tax Faculty members can download the full guide.
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TAXguide 01/23: Payroll rates, allowances and thresholds in 2023/24

PAYE rates, thresholds, allowances, etc for employers in 2023/24 covering income tax, NIC, reliefs and levies, statutory payments, pensions, student loans, NMW/NLW rates and car/van/fuel BIK.
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Practical guidance

ICAEW's Tax Faculty produces TAXguides to provide practical support on technical areas of tax.

Exclusive TAXguide 06/24: Taxation of cars, vans and fuel Q&As
  • Technical release
  • 29 May 2024
Answers are provided in this TAXguide to questions asked in ICAEW's webinar on the taxation of cars and vans, including electric vehicles and fuel.
Exclusive TAXguide 04/24: The cash basis for trades: Q&As
  • Technical release
  • 08 May 2024
ICAEW's Tax Faculty hosted a webinar on 18 April 2024 explaining the cash basis for the self-employed, including the changes that apply from the 2024/25 tax year. Answers to questions asked during the webinar are provided in this TAXguide.
TAXguide 03/24: Payroll rates, allowances and thresholds in 2024/25
  • Technical release
  • 08 Apr 2024
PAYE rates, thresholds, allowances, etc for employers in 2024/25 covering income tax, NIC, reliefs and levies, statutory payments, pensions, student loans, NMW/NLW rates and car/van/fuel BIK.
TAXguide 02/2024: Taxation of cryptoassets for businesses
  • Technical release
  • 28 Feb 2024
TAXguide covering the UK taxation of cryptocurrency held by businesses including corporation tax, stamp taxes, employment income and VAT.
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Features and articles

Technical round-up: December 2024
  • Article
  • 18 Dec 2024
This month’s top stories feature issues with HMRC’s customer service performance raised by ICAEW; the Scottish and Welsh Budgets; and a range of articles on why the UK must reform VAT.
Guidance on making claims for foreign tax credit relief
  • Article
  • 16 Dec 2024
HMRC is writing to taxpayers who claimed relief for foreign tax paid on employment or other income in their self assessment return for 2022/23 and may be considering making a similar claim for 2023/24.
Tax news in brief 11 December 2024
  • Article
  • 10 Dec 2024
Highlights from the broader tax news for the week ending 11 December 2024, including: an evaluation of rent-a-room relief; a new HMRC tool relating to umbrella companies; and an update on freeports.
New HMRC tool for calculating overlap relief
  • Article
  • 09 Dec 2024
HMRC has published an online calculator that can be used to work out a sole trader or partner’s overlap relief figure for their 2023/24 income tax self assessment (ITSA) return.
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Webinars and recordings

Tackling Self Assessment and MTD for Income Tax with AutoEntry
  • Webinar
  • 07 Nov 2024
Are you ready for the pre-accounting revolution? Get ahead of MTD for ITSA prep with time-saving tools.
MTDtalk April 2024
  • Webinar
  • 24 Apr 2024
The latest information and guidance on Making Tax Digital income tax self assessment (MTD ITSA) from the Tax Faculty.
Exclusive Expanding the cash basis
  • Webinar
  • 18 Apr 2024
This webinar from the Tax Faculty will run through the basics of the cash basis and what is changing from 6 April 2024
Payroll and rewards 2024 webinar slides
  • Webinar
  • 12 Apr 2024
  • PDF (1,677kb)
Slides accompanying the Tax Faculty Payroll and Rewards webinar, broadcast on 10 April 2024.
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Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Accounting and Tax Service.

Exclusive Income tax and cessations
  • eBook chapter
  • 2024
  • Jackie Anderson, Mark McLaughlin
  • Incorporating and Disincorporating a Business
A full chapter providing detailed guidance on income tax and business cessations, covering the tax issues, planning points and pitfalls which may be encountered.
Exclusive Bloomsbury Professional Tax Guide 2024/25
  • eBook
  • 2024
  • The TACS Partnership
  • Bloomsbury Professional Tax Guide
Comprehensive practical guide on the full range of UK taxes, containing worked examples throughout.
Exclusive Land and property
  • eBook chapter
  • 2024
  • The TACS Partnership
  • Bloomsbury Professional Tax Guide
A chapter on UK taxation of land and property, containing worked examples.
Exclusive Trusts and estates
  • eBook chapter
  • 2024
  • The TACS Partnership
  • Bloomsbury Professional Tax Guide
Five chapters on trusts and estates, including coverage of income tax and trusts, capital gains tax and trusts, and inheritance tax and trusts.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

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eBooks

The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact library@icaew.com.

Exclusive Benefits in kind
  • eBook chapter
  • 2024
  • Malcolm James
  • Taxation of Small Businesses
A full chapter covering benefits in kind under the UK employment tax system. Includes a range of sample tax calculations with subsections on valuation of benefits, NICs, salary sacrifice, vouchers and tokens, and more.
Exclusive Employment income
  • eBook chapter
  • 2024
  • Malcolm James
  • Taxation of Small Businesses
A long chapter on employment taxation in the UK. Covers NICs, income tax, and all the circumstances where a person may derive income or benefits from their employer.
Exclusive Employment and self-employment
  • eBook chapter
  • 2024
  • Malcolm James
  • Taxation of Small Businesses
This chapter outlines UK employment taxation as it functions in the UK, with particular relevance to small businesses. It includes sections on the definition of self-employment, agency workers, non-executive directors (NEDs), national insurance contributions and the taxation of intermediaries.
Exclusive Trading losses
  • eBook chapter
  • 2024
  • Malcolm James
  • Taxation of Small Businesses
A chapter detailing the ways in which trading losses may be relieved, aimed at small businesses in the UK. Reference is made to relevant legislation, including the Income Tax Act 2007.
Exclusive Property income
  • eBook chapter
  • 2024
  • Malcolm James
  • Taxation of Small Businesses
An overview of taxation of property as it pertains to small businesses in the UK, determined by the Income Tax (Trading and Other Income) Act 2005 and other legislation. This chapter has sections on the basis of assessment, relief for capital expenditure, losses, and furnished holiday lettings (FHLs).
Exclusive Taxation of trading income
  • eBook chapter
  • 2024
  • Malcolm James
  • Taxation of Small Businesses
Chapter on the taxation of trading income which starts with the statutory definition of trading and goes on to look at a list of potential expenditure from repairs to websites. Key cases are referenced throughout the text, as well as the specifics of the Income Tax (Trading and Other Income) Act 2005.
Exclusive Partnerships
  • eBook chapter
  • 2024
  • Malcolm James
  • Taxation of Small Businesses
A full chapter on the taxation of partnerships, including limited partnerships and LLPs. It focuses mainly on Income Tax, but includes a detailed subsection on Capital Gains Tax.
Exclusive Special classes of taxpayers
  • eBook chapter
  • 2024
  • Malcolm James
  • Taxation of Small Businesses
This chapter covers the schemes, reliefs and special rules pertaining to classes of taxpayers not covered elsewhere in this work. This includes the Construction Industry Scheme and rules for small businesses, charities, clubs and societies and various types of occupations.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

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Articles and books in the ICAEW Library collection

The collection of the ICAEW Library & Information Service includes a range of articles, books and reports on income tax. A selection of recent books covering this topic is set out below.
Tolley's taxwise, 2024-25
  • Library book
  • 2024
  • T. Agnew, et al.
  • LexisNexis
An annual two-volume set offering practical expert guidance on how to approach real-world tax computations. Brings together relevant points from current legislation, case law and other official material. Worked examples and detailed explanatory notes are included to illustrate complex points.
How to save property tax, 2024-25
  • Library book
  • 2024
  • C. Bayley
  • Taxcafe UK
Tried and tested tax saving ideas which will help you pay less income tax, capital gains tax and stamp duty land tax on your property investments.
Tolley's tax guide, 2024-25
  • Library book
  • 2024
  • S. Maxwell, J. Houghton
  • LexisNexis
An annual single-volume guide to various aspects of taxation in the UK. Includes sections on employment, pensions, trading, family, trusts, estates and more. Points are illustrated with worked examples and clear tables.
Tolley's income tax, 2024-25
  • Library book
  • 2024
  • P. McNeill
  • Tolley
An annual book providing in-depth but straightforward coverage of statute law, regulations, case law and HMRC practice relating to income tax. It is arranged by subject, with various aspects of income tax law and practice being covered in turn. Worked examples are included to clarify complex points.
Salary versus dividends: and other tax efficient profit extraction strategies, 25th ed.
  • Library book
  • 2024
  • C. Bayley, N. Braun
  • Taxcafe UK
This tax guide deals primarily with the 2024/25 tax year, providing information on how companies and company owners are taxed, how to extract more income tax efficiently, keeping income below the key thresholds, splitting income with your family, other profit extraction strategies and salary and dividend practical tax issues.
Tolley's yellow tax handbook, 2024-25
  • Library book
  • 2024
  • A. Redston (ed.)
  • LexisNexis
Annual multi-volume work bringing together the fully amended and annotated text of all legislation and official material relating to income tax, capital gains tax, corporation tax, national insurance contributions, tax credits, petroleum revenue tax and inheritance tax. Includes footnotes indicating amendments to legislation, and cross-references to the HMRC Manuals.
Financial planning with trusts, 2024-25
  • Library book
  • 2024
  • J. Woolley, M. Banner
  • Claritax Books
This book demonstrates the effective use of trusts to meet financial and tax planning objectives, elucidating the implications, advantages and potential disadvantages of using particular types of trusts. Aimed at both tax practitioners and financial advisers, it covers CGT, income tax and IHT planning, and examines the special trust arrangements used in the financial services sector.
Advising British expats: tax compliance and planning, 2024-25
  • Library book
  • 2024
  • J. Connolly
  • Claritax
This annual work provides in-depth coverage of residence, domicile, and double taxation matters, focusing on how UK taxes (such as income tax, CGT, NIC, IHT, etc.) impact expatriates.

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Representations

ICAEW REP 065/24 ICAEW Autumn Budget submission 2024
  • Representation
  • 18 Sep 2024
  • PDF (313kb)
Ahead of the Budget on 30 October, ICAEW has published its submission to the Chancellor. ICAEW urges the government to put incentivising growth at the heart of the Budget, with recommendations including: long-term fiscal planning, a fundamental review of the tax system and investment in skills and green technologies.
ICAEW REP 048/24 Finance (No2) Bill 2023-24 Clause 22 Transfers of assets abroad
  • Representation
  • 23 May 2024
  • PDF (245kb)
A Briefing for MPs on the Finance Bill by ICAEW Tax Faculty dated 21 May 2024.
ICAEW REP 043/24 Improving data HMRC collects from customers: Draft legislation
  • Representation
  • 09 May 2024
  • PDF (247kb)
A representation dated 9 May 2024 to a consultation published by HMRC on 14 March 2024.
ICAEW REP 041/24 TAFR enquiry and assessment powers penalties and safeguards
  • Representation
  • 02 May 2024
  • PDF (273kb)
A representation dated 2 May 2024 to a consultation published by HMRC on 15 February 2024.

Useful links

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

Find out if you can get an exemption from Making Tax Digital for Income Tax
  • Website
  • 24 Oct 2024
  • HMRC
Check if you can apply for an exemption from Making Tax Digital for Income Tax in the future.
Self Assessment: detailed information on GOV.UK
  • Website
  • 27 Nov 2023
  • GOV.UK
Information, guidance and forms relating to various aspects of the Self Assessment system.
Income Tax: detailed information on GOV.UK
  • Website
  • 27 Nov 2023
  • GOV.UK
Information on allowances and reliefs, tax codes, employment, company benefits and share schemes.
Income tax explained
  • Website
  • 22 Nov 2023
  • Institute for Fiscal Studies
Information from the Institute for Fiscal Studies about income tax in the UK, covering: the kinds of income that are subject to income tax; rates, bands and allowances; the treatment of savings, investments and pensions; devolution; and administration.
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