Income Tax, PAYE, and HMRC

People in the UK pay tax on income including wages, self-employment profits, pensions, and income from property/savings. HM Revenue & Customs (HMRC) is the government department that collects taxes. For most employees, the right amount of income tax is automatically deducted through Pay As You Earn (PAYE). Self-employed people pay through 'self-assessment', including completing a tax return. Money from income tax pays for roads, education, police and armed forces.