Reference
UK Money Reference Guides
Straight-answer reference pages on UK tax, pensions, and saving. Each guide leads with the facts in a table, cites the gov.uk or HMRC source, and skips the waffle.
Tax
Am I Still a UK Tax Resident If I Live Abroad? 2026/27
Living abroad does not by itself end UK tax residence. Your status is set by the Statutory Residence Test, which counts your days in the UK and your ties here. You are usually non-resident if you spend fewer than 16 days in the UK, or work full-time abroad and spend fewer than 91 days here.
Read the guideHow Much Foreign Income Is Tax-Free in the UK? 2026/27
There is no flat tax-free amount for foreign income. UK residents are taxed on their worldwide income, but new arrivals not UK resident in the prior 10 years can claim relief under the 4-year FIG regime. Small trading or property income under GBP 1,000 needs no report.
Read the guideHow to Check If You Are Owed a UK Tax Refund
You can check if HMRC owes you a tax refund online through your Personal Tax Account or the HMRC app. Both show your tax code, an Income Tax estimate, and let you claim a refund. HMRC also sends a P800 tax calculation letter between June and March if you have overpaid.
Read the guideHow to Claim a UK Tax Refund 2026/27: The HMRC Process
You can reclaim overpaid UK Income Tax for the current and previous 4 tax years. The route depends on why you overpaid: an automatic P800 calculation, an online claim through your Personal Tax Account, Self Assessment, a P87 for job expenses, Marriage Allowance, or a pension lump sum form.
Read the guideList of UK Tax Codes and What They Mean
A UK tax code tells your employer or pension provider how much tax-free income you get before tax is deducted. The number is your tax-free amount divided by ten; the letter shows your situation. 1257L is the standard 2026/27 code, giving the full GBP 12,570 Personal Allowance.
Read the guideMarriage Allowance UK 2026/27: Who Qualifies and How to Claim
Marriage Allowance lets one spouse or civil partner transfer GBP 1,260 of their Personal Allowance to the other. The lower earner must have income below the GBP 12,570 Personal Allowance and the other must be a basic-rate taxpayer. It cuts the couple tax by up to GBP 252 a year.
Read the guideMoving Your UK Pension Abroad 2026/27: QROPS, Drawdown and Tax
You can leave a UK pension in the UK and draw it under UK PAYE, with double-taxation treaty relief, or transfer it to a QROPS. Transfers above your overseas transfer allowance, or that fail the exemption conditions, face a 25% Overseas Transfer Charge. The State Pension is frozen in many countries.
Read the guideNon-Dom UK 2026: The 2025 Abolition and the New FIG Regime
The UK non-dom regime was abolished on 6 April 2025. The domicile-based remittance basis was replaced with a residence-based system. New arrivals who were non-UK resident for the previous 10 years can claim the 4-year foreign income and gains (FIG) regime, then pay UK tax on worldwide income and gains like any resident.
Read the guideP85 Form: How to Tell HMRC You Are Leaving the UK
The P85 tells HMRC you have left or are leaving the UK so it can work out any Income Tax refund and set your residence position. Use it if you do not complete a Self Assessment return; if you do, report on the return instead. Submit online with a Government Gateway account or by post.
Read the guideThe 90-Day Tax Rule UK: When Days in the UK Make You Resident
There is no single 90-day rule. Under the Statutory Residence Test, your day count plus your UK ties decide residency. Fewer than 16 days can make you automatically non-resident; 183 or more makes you automatically resident. The 90-day tie applies if you spent over 90 days in the UK in either of the previous 2 tax years.
Read the guideUK Non-Resident Tax 2026/27: What Changes When You Leave
Non-residents still pay UK tax on most UK income, including wages for work done in the UK, rental income, and gains on UK property. Dividends and interest can fall under the disregarded income rule, and you can keep an ISA open but cannot pay new money into it once you stop being a UK resident.
Read the guideUK Tax Codes Explained 2026/27: How They Work
HMRC works out your tax code by totalling your tax-free allowances, deducting any untaxed income, and dropping the last digit of the result. The number is your tax-free amount divided by ten; the letter reflects your situation. The standard 2026/27 code is 1257L, giving the full GBP 12,570 Personal Allowance.
Read the guideUK Tax Residency 2026/27: The Statutory Residence Test Explained
UK tax residency is settled by the Statutory Residence Test. You are automatically resident if you spend 183 or more days in the UK in the tax year, and automatically non-resident if you spend fewer than 16 days. Between those limits, the sufficient ties test combines days in the UK with the number of UK ties you hold.
Read the guidePensions
AJ Bell SIPP UK: Charges, Funds and How It Works
The AJ Bell SIPP is a self-invested personal pension. The custody charge is 0.25% a year on funds, tiering down above GBP 250,000, and is capped at GBP 120 a year if you hold shares. Fund deals cost GBP 1.50 and share deals GBP 5. You pick the investments, or use a ready-made option.
Read the guideArmed Forces Pension UK 2026: AFPS 75, 05 and 15 Compared
The Armed Forces Pension Scheme has three versions. AFPS 75 and AFPS 05 are final salary schemes, now closed. AFPS 15 is a career average scheme and is the only one open to serving personnel, who were all moved into it by 1 April 2022.
Read the guideAviva Workplace Pension: A Plain Guide
The Aviva workplace pension is a defined contribution scheme: you and your employer pay in and the pot is invested, usually in Aviva default fund. Auto-enrolment default charges are capped at 0.75% a year. Aviva is one of the UK largest pension providers, and what you get out depends on contributions, charges and growth, not a salary formula.
Read the guideCivil Service Pension UK 2026: Classic, Premium, Nuvos and Alpha
Every active civil servant now builds up pension in alpha, a career average scheme that grows by 2.32% of pensionable pay each year, with a normal pension age equal to State Pension age (or 65 if later). The older classic, classic plus, premium and nuvos sections closed to new accrual on 31 March 2022.
Read the guideFidelity SIPP UK: Charges, Funds and How It Works
The Fidelity SIPP is a low-cost self-invested personal pension. The service fee is 0.35% a year on funds, falling to 0.20% above GBP 250,000, and is capped at GBP 90 a year if you hold shares and ETFs. Fund dealing is free; share deals cost GBP 7.50. You pick the investments, or use a ready-made option.
Read the guideHargreaves Lansdown SIPP: Charges and How It Works
The Hargreaves Lansdown SIPP is the UK largest self-invested personal pension. From 1 March 2026 the annual charge is 0.35% on funds, capped at GBP 150 a year on shares, with fund deals at GBP 1.95 and share deals at GBP 6.95. It is feature-rich but still pricier than the cheapest fund rivals.
Read the guideHow UK Pensions Work: Ages, Tax Relief, Tax-Free Cash and Inheritance
A UK pension is a tax-sheltered pot, not a savings account: the government adds tax relief when you pay in. You can access a private or workplace pension from age 55 (57 from April 2028), which is separate from the State Pension age of 66 (rising to 67). Up to 25% comes out tax-free.
Read the guideLegal & General Workplace Pension: A Plain Guide
The Legal & General workplace pension is a defined contribution scheme: you and your employer pay in and the money is invested, usually in L&G default multi-asset fund. By law the default fund charge is capped at 0.75% a year. What you get out depends on contributions, charges and investment growth, not a salary formula.
Read the guideNHS Pension Calculator: What You Will Actually Get
The NHS 2015 scheme builds a pension of 1/54 (about 1.85%) of your pensionable pay each year, revalued by CPI plus 1.5% while you work. So 30 years on GBP 35,000 average pay builds roughly GBP 19,400 a year, payable from your State Pension age. It is a defined benefit promise, not a pot.
Read the guidePension Calculator UK: What Your Pot Really Pays
As a rough rule, a pension pot safely provides about 4% a year. A GBP 300,000 pot gives around GBP 12,000 a year before the State Pension, which adds GBP 12,548 more. Our calculator projects your pot; this guide turns that pot into a monthly income in today money.
Read the guidePolice Pension UK 2026: PPS 1987, 2006 and 2015 Compared
UK police officers have built up pension in one of three schemes: PPS 1987 (final salary, 1/60 then 2/60 accrual), the 2006 New Police Pension Scheme (final salary, 1/70, normal pension age 55), and the 2015 scheme (career average, 1/55.3 accrual, normal pension age 60). Since April 2022 all serving officers accrue in the 2015 scheme.
Read the guideScottish Widows Pension: A Plain Guide
The Scottish Widows pension is a defined contribution scheme, usually a workplace or personal pension: you (and an employer, if it is a workplace scheme) pay in, and the pot is invested in a default fund. Auto-enrolment default charges are capped at 0.75% a year. Scottish Widows is part of Lloyds Banking Group.
Read the guideVanguard SIPP UK: Charges, Funds and the Catch
The Vanguard SIPP is a low-cost personal pension holding only Vanguard funds. The account fee is 0.15% a year, capped at GBP 375, with free fund dealing. Since 31 January 2025 a GBP 4 a month minimum applies to pots under GBP 32,000. It is cheap and simple, but limited to Vanguard own funds.
Read the guideInvesting
Savings
Best ISA Rates UK 2026: What the Tables Miss
In mid-2026 the best easy-access cash ISA rates reach about 4.6% AER, with the top one-year fixed ISAs similar. But a headline rate is only worth chasing once your savings interest breaches your Personal Savings Allowance - GBP 1,000 for a basic-rate taxpayer. Below that, a taxable account can beat a cash ISA.
Read the guideHargreaves Lansdown Cash ISA: Rates and How It Works
The Hargreaves Lansdown Cash ISA is a tax-free savings marketplace: one account lets you pick, mix and switch easy-access and fixed-rate ISAs from more than 10 banks, with no HL fee. Interest is tax-free and it uses your GBP 20,000 ISA allowance. Rates are competitive, though not always the market best.
Read the guideHelp to Save UK: The 50% Government Savings Bonus
Help to Save is a government savings account for people on Universal Credit. You can save GBP 1 to GBP 50 a month, and the government adds a 50% bonus on your highest balance, paid after two years and again after four. Save the full GBP 50 a month and you can get up to GBP 1,200 free over four years.
Read the guideProperty
Agreement in Principle UK: What an AIP Is and How to Get One
An Agreement in Principle (AIP), also called a Decision in Principle or Mortgage in Principle, is a lender's provisional indication of how much it would lend you, based on a soft credit check. It is not a guaranteed mortgage offer, usually lasts 30 to 90 days, and is often free to get online in minutes.
Read the guideFirst-Time Buyer Schemes UK: Every Option Explained
UK first-time buyers can combine several schemes. A Lifetime ISA adds a 25% bonus on up to £4,000 a year, First Homes offers 30-50% off a qualifying new-build, Shared Ownership lets you buy a 10-75% share, the 2025 Mortgage Guarantee Scheme backs 5% deposits, and stamp duty relief applies up to £500,000.
Read the guideBenefits
Attendance Allowance 2026/27: Rates and Who Gets It
Attendance Allowance is a benefit for people over State Pension age who need help with personal care because of an illness or disability. It pays GBP 76.70 or GBP 114.60 a week in 2026/27. It is not means-tested and not taxable, so your income and savings do not affect it, and you do not have to spend it on care.
Read the guideCarer's Allowance 2026/27: Rate, Rules and the Trap
Carer's Allowance is a benefit for people who care for someone at least 35 hours a week. It pays GBP 86.45 a week in 2026/27. You must earn no more than GBP 204 a week after deductions, and the cliff edge is brutal: earn GBP 1 over and you lose the whole payment, not just the excess.
Read the guidePIP Rates 2026/27: How Much You Get and the Reform
Personal Independence Payment (PIP) helps with the extra costs of a long-term health condition or disability. It has two parts. The daily living part pays GBP 76.70 or GBP 114.60 a week in 2026/27; the mobility part pays GBP 30.30 or GBP 80.00. You can get one or both, so the most is GBP 194.60 a week.
Read the guideBonds, Cash & Savings
Economy
Gini Coefficient UK 2026: What It Is and the Latest Figures
The Gini coefficient measures income inequality on a scale where 0 means everyone has the same income and 1 (or 100%) means one person has it all. The UK disposable income Gini was 32.9% in the financial year ending 2024, according to the ONS, broadly flat over the past decade.
Read the guideWealth Inequality UK 2026: The Key Figures
Median household wealth in Great Britain was GBP 293,700 in the April 2020 to March 2022 ONS Wealth and Assets Survey. The wealthiest 1% of households held 10% of all wealth, the same share as the least wealthy 50% combined. The wealth Gini coefficient was 0.59.
Read the guideHousing
Income
Platforms
Retirement Planning
Self-Employed
Allowable Expenses for the Self-Employed UK
An allowable expense is a cost incurred wholly and exclusively for your business that you can deduct from your income to lower your taxable profit. It is not a refund: a GBP 100 expense cuts a basic-rate sole trader's tax bill by about GBP 26 (20% Income Tax plus 6% Class 4 NIC), not GBP 100.
Read the guideAuto-Enrolment for Employers UK: Your Duties, Done Right
If you employ at least one person, you must automatically enrol every member of staff aged 22 to State Pension age who earns over GBP 10,000 a year into a workplace pension and pay into it. The minimum total contribution is 8% of qualifying earnings, of which you must pay at least 3%.
Read the guideCorporation Tax UK: A Small Company Guide for 2026/27
UK Corporation Tax is 19% on profits up to GBP 50,000 and 25% on profits over GBP 250,000. In between, Marginal Relief tapers the bill, so each pound of profit in the GBP 50,000 to GBP 250,000 band is taxed at an effective 26.5%, higher than the 25% headline.
Read the guideDo I Need to Register for VAT? The GBP 90k Threshold
You must register for VAT if your VAT-taxable turnover went over GBP 90,000 in any rolling 12-month period, or if you expect to pass GBP 90,000 in the next 30 days alone. The threshold is a registration trigger, not a tax-free band: once registered you charge VAT on all your taxable sales.
Read the guideHiring Your First Employee UK: The Employer Checklist
To hire your first employee in the UK you must register as an employer with HMRC before their first payday, check their right to work, take out employers liability insurance of at least GBP 5 million, set up PAYE, and give them a written statement of employment particulars from day one.
Read the guideHow Much Tax to Set Aside When Self-Employed (2026/27)
As a self-employed sole trader, set aside roughly 20-25% of profit if you are a basic-rate taxpayer, 35-40% if higher-rate, and more once profit passes GBP 100,000. But your first bill is around 1.5x one year of tax, because HMRC adds payments on account.
Read the guideHow to Become Self-Employed UK: The Step-by-Step Route
You become self-employed in the UK by trading for profit on your own account. If you earn more than GBP 1,000 from it in a tax year you must tell HMRC by registering for Self Assessment, then pay Income Tax and National Insurance on your profits. Below GBP 1,000 the trading allowance usually covers you.
Read the guideHow to Register as a Sole Trader UK (Step by Step)
Registering as a sole trader means registering for Self Assessment with HMRC as self-employed. You must do it if you earned more than GBP 1,000 from self-employment in a tax year, by the 5 October after that tax year ends. It is free, done online, and gives you a Unique Taxpayer Reference (UTR).
Read the guideHow to Set Up a Limited Company UK (Step by Step)
You set up a limited company by registering it with Companies House online, which costs GBP 100 and usually takes under 24 hours. You need a company name, at least one director, a shareholder, a SIC code and a registered office address, plus identity verification. You can do it yourself; a formation agent is optional.
Read the guideIncome Protection Self-Employed UK: Is It Worth It?
Income protection pays you a monthly income if illness or injury stops you working. The self-employed get no Statutory Sick Pay, so the income stops the day you do. Premiums on a personal policy are not tax-deductible, but the benefit is paid tax-free.
Read the guideLate Payment Interest UK: Your 8% + Base Rate Right
On overdue business-to-business invoices you can charge statutory interest of 8 percentage points above the Bank of England base rate, plus a fixed compensation sum per invoice (GBP 40, GBP 70 or GBP 100 by debt size). This is a legal right under the Late Payment of Commercial Debts (Interest) Act 1998, not a favour you ask for.
Read the guideMaking Tax Digital for Income Tax: When It Hits You
Making Tax Digital for Income Tax replaces one annual Self Assessment return with four quarterly updates plus a final declaration, filed through HMRC-recognised software. It starts on 6 April 2026 for sole traders and landlords with qualifying income over GBP 50,000, then GBP 30,000 from April 2027 and GBP 20,000 from April 2028.
Read the guideMaternity Allowance Self-Employed: Rates and the NI Trap
Self-employed mothers cannot get Statutory Maternity Pay, so they claim Maternity Allowance instead. It pays up to GBP 194.32 a week (or 90% of average weekly earnings if lower) for 39 weeks. Pay too little Class 2 National Insurance and it drops to as little as GBP 27 a week.
Read the guidePayments on Account: The Self-Assessment Surprise
Payments on account are two advance instalments towards next year's tax bill, each 50% of last year's tax, due on 31 January and 31 July. You make them if your last bill was over GBP 1,000 and less than 80% of your tax was collected at source. In your first profitable year this can mean up to 150% of one year's tax due at once.
Read the guidePayroll for Small Business UK: How to Run It
To run payroll you register as an employer with HMRC, use payroll software to work out tax and National Insurance, and send a Full Payment Submission (FPS) to HMRC on or before each payday. You must give every employee a payslip and pay HMRC what you owe each month.
Read the guideSalary vs Dividends: The Director's Split for 2026/27
Most one-person companies pay a small salary up to the GBP 12,570 Personal Allowance, then take the rest as dividends. Salary is deductible against Corporation Tax; dividends are paid from post-tax profit but carry no National Insurance. After the Nov 2025 Budget raised dividend rates, the dividend advantage has narrowed but usually still wins.
Read the guideSelf-Employed Pension UK: No Auto-Enrolment, Now What?
The self-employed get no auto-enrolment and no employer contribution, so a personal pension or SIPP is the main route. Your provider adds 20% basic-rate tax relief automatically; higher-rate taxpayers must claim the extra 20% through Self Assessment. You can contribute up to GBP 60,000 a year, capped at 100% of your earnings.
Read the guideSelf-Employed Sick Pay UK: Why There Isn't Any
There is no statutory sick pay for the self-employed. Statutory Sick Pay is an employee benefit, and a sole trader is not an employee. If you fall ill the main fallback is New Style Employment and Support Allowance (ESA), a contribution-based benefit that depends on your National Insurance record.
Read the guideSelf-Employed Tax UK: What You Actually Owe
A sole trader pays Income Tax and Class 4 National Insurance on profits. Your marginal rate in the basic-rate band is not 20% but 26%: 20% Income Tax plus 6% Class 4 NIC. The first GBP 12,570 of profit is tax-free under the Personal Allowance.
Read the guideVAT Flat Rate Scheme UK: Is It Worth It in 2026?
The VAT Flat Rate Scheme lets you pay HMRC a fixed percentage of your VAT-inclusive turnover instead of tracking VAT on every purchase. Since April 2017, low-spend service businesses are pushed onto a punitive 16.5% rate, so run the limited cost trader test before you join.
Read the guide