Income Tax is a type of tax calculated on the net profit of a company's directors and employees at the end of a fiscal year. Here, real persons who make a net profit from the company rather than the company pay taxes to the government.

You are exempt from income tax if your annual net income is less than £12,570. Thus, you do not have to pay any income tax.

Income Tax rates are determined by the amount of net income you have earned:

You are exempt from Income Tax for your income up to £12,570 per year.

You shall pay 20% Income Tax on your annual income between £12,571 and 50,270.

You shall pay 40% Income Tax on your annual income between £50,271 and £150,000.

You shall pay 45% Income Tax on your income over £150,000 per year.

Under UK law, all directors and employees with a net income above the exemption amount from a company registered in the United Kingdom are liable to pay Income Tax.