Income tax is a form of tax that UK taxpayers pay to the government on their income. We’ve written this article to help you understand the income tax rates in the UK.
- What is income tax?
- The tax calendar
- The tax-free personal allowance
- Income tax rates in England, Wales and Northern Ireland
- Income tax rates in Scotland
- How much income tax will I pay?
What is income tax?
Simply put, income tax is the tax you have to pay the government based on your yearly income. It’s the government’s main source of revenue and is collected by HM Revenue & Customs (HMRC) on their behalf. The government uses the revenue from income tax to provide funding for public services such as the NHS, education and the welfare system.
The tax calendar
The current tax year is from 6 April 2022 to 5 April 2023.
How much income tax you pay in each tax year depends on how much of your income is above your personal allowance and how much of your income falls within each tax band.
The tax-free personal allowance
The standard tax-free personal allowance is currently £12,570.
Your personal allowance may be more than this if you claim a marriage allowance or a blind person’s allowance.
Income tax rates in England, Wales and Northern Ireland
| Band | Taxable Income | Tax Rate |
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £150,000 | 40% |
| Additional rate | over £150,000 | 45% |
Income tax rates in Scotland
| Band | Taxable Income | Tax Rate |
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £14,732 | 19% |
| Basic rate | £14,733 to £25,688 | 20% |
| Intermediate rate | £25,689 to £43,662 | 21% |
| Higher rate | £43,663 to £150,000 | 41% |
| Top rate | over £150,000 | 46% |
How much income tax will I pay?
You can check how much income tax you are likely to pay for the continuation of the year by clicking here.
This article has been written as a guide to provide information about income tax in the UK only. If you have any income tax queries, or tax queries in general, then please visit this page of the government website or consult a professional.
If you would like to discuss the NHS positions available in your speciality, and how our team can assist you, please contact us.
