Back
Let us sort your Self Assessment today. Stress-free. For £119, all in. Learn more

UK income tax rates for tax year 2016/2017

For tax year 2016/2017 the UK basic income tax rate was 20%. This increases to 40% for your earnings above £43,000 and to 45% for earnings over £150,000.

Your earnings below £11,000 are tax free. This is called the personal allowance. However for every £2 you earn over £100,000 this allowance is reduced by £1.

IncomeTax rate
Up to £11,0000%Personal allowance
£11,501 to £43,00020%Basic rate
£43,001 to £150,00040%Higher rate
over £150,00045%Additional rate

How to calculate it

You can also use this calculator and select the 2016/2017 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
£37,911
Income tax
£7,300
NI
£3,789
Total income tax
£7,300
£12,500 taxed at 0%
£36,500 taxed at 20% : £7,300
Total NI contributions
£3,789
Class 2 NI: £156
Class 4 NI at 9% : £3,633
What you’re left with
£37,911

Hey there! We really hope this calculator helped you. Tax matters can be a dreadful topic at times. We know. That’s why we started TaxScouts.
A stress-free way to getting your taxes done.

Have a minute? See how it works

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

Hey there! We really hope this article helped you. Tax matters can be a dreadful topic at times. We know. That's why we started TaxScouts.
A stress-free way to getting your taxes done.

Have a minute? See how it works

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.

How it works

1. Answer a few simple questions

And we mean a few. After a couple of minutes of answering questions online we’ll have everything we need to start working on your tax return.

2. Then get paired with a tax accountant

That’s right, you’ll be matched with a real accountant who is best suited to prepare your return. Plus, they’re on hand for questions whenever you need.

3. We file your Self Assessment for you

Once you’ve signed off your return, your TaxScouts accountant will file your return online with HMRC. That’s it! We told you it was simple.