You have to pay tax on income from your job, profits from self-employment, interest on savings and dividends from investments, profits from letting your property, pensions, and some state benefits, including jobseekers’ allowance. Gifts are free of income tax, as are gambling winnings. Profits from selling investments do not count for income tax, but may be liable for capital gains tax.

If you are responsible for at least one child or young person who normally lives with you, you may qualify for, for example, the Child Tax Credit. But you don’t need to have children to qualify. For example if you are employed but are on low wages, you could be eligible for the Working Tax Credit. For those who are married, or living with a partner, they are required to make a joint claim for tax credits, single claims can only be made if you don’t have a spouse.