Let us sort your Self Assessment today. Stress-free. For £119, all in. Get started

UK income tax rates for tax year 2015/2016

For tax year 2015/2016 the UK basic income tax rate was 20%. This increases to 40% for your earnings above £42,385 and to 45% for earnings over £150,000.

Your earnings below £10,600 are tax free. This is called the personal allowance. However for every £2 you earn over £100,000 this allowance is reduced by £1.

At a glance

IncomeTax rate
Up to £11,0000%Personal allowance
£11,501 to £42,38520%Basic rate
£442,386 to £150,00040%Higher rate
over £150,00045%Additional rate

How to calculate it

You can also use this calculator and select the 2015/2016 tax year so you can see how much income tax you should have paid.

Annual self-employment income
Self-employment expenses
Select tax year
Income after tax
Income tax
Total income tax
£12,500 taxed at 0%
£36,500 taxed at 20% : £7,300
Total NI contributions
Class 2 NI: £156
Class 4 NI at 9% : £3,633
What you’re left with

How your income tax is calculated

As a self-employed you have to pay your income tax and national insurance contributions yourself during your annual self assessment. Our calculator helps you quickly assess how much payment is due.

However you may be eligible for a tax refund when:

  1. You already made tax payments for the year but your annual income ended up smaller than planned
  2. You have done things that qualify for tax relief (made private pension contributions, give to charity, etc)

In your case when you earn £49,000:

Income tax breakdown

You pay no income tax on first £12,500 that you make

You pay £7,300 at basic income tax rate (20%) on the next £36,500

More guides & useful information

Let us sort your Self Assessment online. £119, all in.

That’s right. No matter how complicated it gets or why you need to do a return in the first place, it’ll cost £119 to get it done. That includes VAT, last-minute changes and all the support you may need.