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This is the quick-answer layer for the site. Use it when the question is small and specific: a tax code, a threshold, an allowance, a filing trigger, or a piece of HMRC wording that does not need a full calculator yet.

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This is the UK Tax Drag FAQ hub — 49 of the most-asked UK tax and money questions answered with current 2026/27 figures. Each card links to a deeper page where the math is shown step-by-step. If your question isn't here, use the search at the top of the page or check our tax glossary.

Reviewed against HMRC, DWP and FCA published guidance. No affiliate links. No paid placements. See our methodology.

Income tax, PAYE and tax codes

Tax codes

What is a UK tax code?

How HMRC tells your employer how much tax-free pay you get. The 4 digits + letter explained.

Threshold traps and high earners

Pensions and tax relief

Tax relief

What is pension tax relief?

The gross-up that turns £80 into £100 in your pension — and how higher-rate payers reclaim more.

Salary sacrifice

Is salary sacrifice worth it?

It saves income tax and employee NI on the pay you give up. The trade-off: lower cash pay can reduce statutory pay and some earnings-related benefits.

Higher-rate

How do I claim higher-rate pension relief?

With relief-at-source pensions only the first 20% is added automatically — you claim the rest on a Self Assessment return, or through HMRC if you do not file one.

ISAs and tax-free wrappers

ISA vs GIA

Is an ISA worth it vs a GIA?

ISA income and gains are tax-free; outside one, only the £500 dividend allowance and £3,000 CGT exemption shelter you. The calculator compares both over your horizon.

Capital gains, dividends and investments

CGT rates

What are the CGT rates?

18% in your unused basic-rate band, 24% above — the same rates for shares and property.

Bed and ISA

What's "bed and ISA"?

Selling outside an ISA and rebuying inside it — legal way to crystallise gains.

Self-employed, freelancers and Ltd companies

Filing

Do I need to file Self Assessment?

Yes if you had self-employed income over £1,000, were a partner, or owed CGT or a Child Benefit charge not paid through PAYE; often for larger untaxed income. PAYE pay alone no longer counts, however high.

VAT threshold

When do I register for VAT?

When taxable turnover passes £90,000 in any rolling 12 months. You can register voluntarily earlier.

Family, benefits and life events

State pension and NI credits

Class 3

Should I buy NI top-ups?

A full Class 3 year costs £956.80 in 2026/27 and usually adds about £358.50 a year of State Pension, so it takes about 2 years and 8 months to repay, before tax (GOV.UK rates; GOV.UK State Pension). Check your forecast first: voluntary contributions do not always increase your State Pension (GOV.UK).

Frozen years

What if I have gap years before 2006?

They can no longer be paid for. The extended window, which covered years from April 2006 up to April 2017, closed on 5 April 2025. Only the last 6 tax years can now be paid: in 2026/27 that means 2020/21 onward, and 2020/21 closes on 5 April 2027 (GOV.UK).

Property, mortgages and SDLT

Inheritance tax and wealth transfer

Other common questions

P11D

What is a P11D?

The form that reports benefits-in-kind your employer gave you — affects your tax code.

Benefits-in-kind

What is a benefit in kind?

Non-cash compensation taxed via your code. Common: medical insurance, car, gym, accommodation.

Tax code BR

Why is my tax code BR?

BR means 20% basic-rate on all of this income — usually a second job or pension with no PA.

0T code

Why is my tax code 0T?

Zero allowance applied — you've used up your PA somewhere else, or new starter without P45 info.

Can't find your question?

Three places to look next:

Or ask via the contact form — if it's a question we should have on the site, we'll add it.

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Pages are checked against the primary sources listed on each page and reviewed by the Editor; corrections are logged in the changelog. Pages are drafted with the help of AI tools (how AI is used). No affiliate revenue. No sponsored content. No paid placements.

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UK Tax Drag is an independent publication by Finsolve Consulting Limited, not affiliated with or endorsed by HMRC, GOV.UK or any government body.