Income Categories Explained

Categorizing income helps with tax planning and understanding your earnings. Here's what each category means:

Employment

Regular salary or wages from an employer.

Includes:

Tax treatment: Usually taxed at source via PAYE

Freelance

Payment for services to clients without permanent employment.

Includes:

Tax treatment: Self-assessed, you're responsible for tax payment

Content Creation

Earnings from digital content and influence.

Includes:

Tax treatment: Often received in foreign currency, self-assessed

Business

Income from running your own business.

Includes:

Tax treatment: Business income, may qualify for more deductions

Rental Income

Money received from renting property.

Includes:

Tax treatment: May have different deduction rules

Investment

Returns from investments.

Includes:

Tax treatment: Some investment income has special tax treatment

Other

Anything that doesn't fit above categories.

Examples: