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Income tax rates in the UK

  • 1 min read
  • Last updated 2 Apr 2024

UK income tax rates depend on your income.

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

Depending on your tax bracket, the rate at which you pay income tax will increase to 40% for your earnings above £50,270 and to 45% for earnings over £125,140.

Your earnings below £12,570 are tax-free. This tax bracket is called the Personal Allowance.

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

Income tax rates UK

How to calculate it

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

Your situation

Outlined number oneImage of an arrow
I am
Annual self-employed income
Self-employed expenses

Tax and profit

Outlined number two
  • Total earnings
    £1,000 tax-free Trading Allowance
  • Tax to pay
    £7,286 income tax
    £0 class 2 National Insurance
    £2,186 class 4 National Insurance
  • What you’re left with

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 £12,570 that you make

You pay £2,186 in contributions (at 6%) on the next £36,430 that you make

You pay £0 in NI Class 2 contributions

Tax bill amount £9,472
I want to pay by
Savings frequency

You need to save

£14.22 per day

to pay your £9,471.56 tax bill by 31/1/2026 which is in 666 days

In a nutshell: UK income tax rates for 2024/2025

EarningsTax rateTax band
Up to £12,5700%Personal allowance
£12,571 – £50,27020%Basic rate
£50,271 – £125,14040%Higher rate
£125,141+45%Additional rate

If you need the income tax for previous tax years:

Need help from an accountant?

We can help! We offer a pay-as-you-go tax accountant service for £229, all in – so if you want to speak to an accredited accountant for a one-off advice consultation on your personal situation as well as getting your tax return filed, you can. 

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