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Income tax rates in the UK

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.

Annual self-employment income
£
Self-employment expenses
£
Select tax year
Income after tax
£37.9k
Income tax
£7.3k
NI
£3.8k
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

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

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:

More guides & useful information

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