​When you’re dealing with tax in the UK you need to know that different types of income are treated under the same tax bands, but the source matters for reliefs and allowances Here are key types:

• Employment income: salary, wages, bonuses, etc. This is fully included in your taxable income for Income Tax.

• Pension income: including state pensions, company pensions or personal pensions. They count as taxable income, once allowances are applied.

• Savings and investment income: interest, dividends (after allowances) and other returns. These may benefit from specific allowances (for example, a Personal Savings Allowance) but are included in your overall taxable income. If you have income from any of these sources, your total income (employment + pensions + savings + other) affects which tax band you fall into and whether any allowances reduce. Planning how income is timed, how it is structured (especially if you have overseas or trust income) can help reduce your tax liability.