Income tax is a form of tax that UK taxpayers pay to the government on their 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 UK tax year runs from 6 April to 5 April of the following year.
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 current year by using the government’s income tax calculator.