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UK income tax rates for tax year 2017/2018

  • 1 min read
  • Last updated 10 May 2022

For tax year 2017/2018 the UK basic income tax rate was 20%. This increased to 40% for your earnings above £45,000 and to 45% for earnings over £150,000.

Your earnings below £11,500 were tax free. This is called the personal allowance. However for every £2 you earned over £100,000 this allowance was reduced by £1.

IncomeTax rate
Up to £11,5000%Personal allowance
£11,501 to £45,00020%Basic rate
£45,001 to £150,00040%Higher rate
over £150,00045%Additional rate

How to calculate it

You can also use this calculator and select the 2017/2018 tax year so you can see how much income tax you should have paid.

Your situation

Outlined number oneOutlined number one
I am
Annual self-employed income
Self-employed expenses
?

Tax and profit

Outlined number two
  • Total earnings
    £50,000
    £1,000 tax-free Trading Allowance
    ?
  • Tax to pay
    £10,994
    £7,286 income tax
    £159 class 2 National Insurance
    £3,549 class 4 National Insurance
  • What you’re left with
    £39,006

How your income tax is calculated

When you’re self-employed, you have to pay your income tax and national insurance contributions yourself in your annual Self Assessment. Our calculator helps you quickly assess how much you owe.

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 less than planned
  2. You have done things that qualify for a tax relief (made private pension contributions, given to charity, etc.)

In your case when you earn £50,000:

Income tax breakdown

You pay no income tax on first £12,570 that you make

You pay £7,286 at basic income tax rate (20%) on the next £36,430

National insurance contributions breakdown

No contributions on the first £9,568 that you make

You pay £3,549 in contributions (at 9%) on the next £39,432 that you make

You pay £159 in NI Class 2 contributions

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