Tax if you work
PAYE takes into account the amount of pay and tax deducted since the start of the tax year so that the correct proportion of the annual lower- basic and higher-rate tax liability is deducted on each pay day.
Unless you are a company director, your income is very high or you have some form of untaxed income, you are unlikely to get a tax return.
National insurance contributions (NICs)
You have to pay NICs on your earnings and these are deducted by your employer at source.
Contributions you make to a pension scheme or payroll-giving scheme are included in your pay when working out your NICs and you get income tax relief on these payments, but not relief from your NICs.
Tax reliefs
You can deduct from your employment income some payments you have to make to do your work.
If you have to travel for work, whether or not your are reimbursed, you can claim tax relief on travel expenses, such as fares and the cost of accommodation and meals.
If you use your own car, van or bike for work you are entitled to a mileage allowance. You can't claim any additional tax relief to cover the cost of buying a car or for depreciation.

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Latest news
Statutory legacy to increase 29 August 2008
Married couples and civil partners whose spouse or civil partner dies without leaving a will are to benefit from an increase in the statutory legacy under new Government proposals.
- Government told to simplify CGT 21 August 2008
- Wiping out inheritance tax 20 August 2008
- Inheritance tax confusion costs millions
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Tax planning in depth
Tax on the internet 4 March 2008
Martin Fagan explains where you can find tax advice online
- Improving efficiency 25 February 2008
- Planning to pass it on 4 February 2008
- Your pension pot of gold 30 October 2007
Guides
Guide to inheritance tax 21 January 2008
Paul Wilcox, chairman and technical director, WAY Group outlines the basics of inheritance tax.
- Live webchat: Inheritance tax 12 September 2007
- Make sure you don't pay hidden tax on investments 17 April 2007
- Use your capital gains tax allowance 17 April 2007
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