Income tax rates in the UK

We've updated this guide on 30th July 2019

Note: We’ve updated this guide for the 2019/2020 tax year.

UK income tax rates depend on your income.

Currently, the UK basic income tax rate is 20%.

This increases to 40% for your earnings above £50,000 and to 45% for earnings over £150,000.

Your earnings below £12,500 are tax-free. This is called the Personal Allowance.

However, for every £2 you earn over £100,000, your allowance is reduced by £1.

How to calculate it

Use this income tax calculator to see how much you should pay.

Your annual income
£
Business expenses
£
Select tax year

Your income

£0
£49,000.00

Income tax & tax brackets

Tax free
Taxed at 20%
£7,300.00
Gross income
£49,000.00
Taxable income
£36,500.00
NI contributions
£3,786.64
Total income tax
£7,300.00

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 £49,000.00:

Income tax breakdown

You pay no income tax on first £12,500.00 that you make

You pay £7,300.00 at basic income tax rate (20%) on the next £36,500.00

In a nutshell: UK income tax rates for 2019/2020

Income Tax rate
Up to £12,500 0% Personal allowance
£12,501 to £50,000 20% Basic rate
£50,000 to £150,000 40% Higher rate
over £150,000 45% Additional rate

If you need the income tax for previous tax years:

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Who our service is for

First time tax filers

We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.

Construction workers

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And for everyone else who needs to do their self assessment

At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.





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What happens next

  • We'll ask you a couple of short questions
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  • Finally one of our qualified accountants will file your tax return