Income Tax
What Is Income Tax?Income tax is a direct tax which is levied on the income of private individuals. Taxable income includes wages, salaries, investments, interest, dividends, benefits and any income from self-employment.
How Will You Be Taxed?
The way you will be taxed will depend on the legal form of your business and the way you run your business. You will be taxed differently if you define your employment status as ‘self-employed’ or ‘employed’. For example, in the case of a couple, if the husband had set up as a sole trader, he would be regarded as self-employed while his wife may be regarded as employed. If the same couple set up their business as a limited company, they would both be regarded as being employed by the business.