Income tax is a compulsory contribution you make to the goverment upon recieving employment income. In the United Kingdom (incl. Scotland), income tax is calculated based on a progressive tax system. This means tax rates progress as taxable income increases, based on set income brackets.
Non-Scottish residents in the UK:
*assuming personal allowance of £12,570 (most common)
Band | From | To | % Tax |
---|---|---|---|
Personal Allowance | £0 | £12,570 | 0% |
Basic rate | £12,570 | £50,270 | 20% |
Higher rate | £50,270 | £125,140 | 40% |
Additional rate | £125,140 | - | 45% |
Non-Scottish residents in the UK:
*variable personal allowance (PA = Personal Allowance)
Band | From | To | % Tax |
---|---|---|---|
Personal Allowance | £0 | PA | 0% |
Basic rate | PA | PA + £37,700 | 20% |
Higher rate | PA + £37,700 | £125,140 | 40% |
Additional rate | £125,140 | - | 45% |
Scottish residents in the UK:
*assuming personal allowance of £12,570 (most common)
Band | From | To | % Tax |
---|---|---|---|
Personal Allowance | £0 | £12,570 | 0% |
Starter rate | £12,570 | £14,732 | 19% |
Basic rate | £14,732 | 25,688 | 20% |
Intermediate rate | 25,688 | £43,662 | 21% |
Higher rate | £43,662 | £125,140 | 42% |
Additional rate | £125,140 | - | 47% |
Scottish residents in the UK:
*variable personal allowance (PA = Personal Allowance)
Band | From | To | % Tax |
---|---|---|---|
Personal Allowance | £0 | PA | 0% |
Starter rate | PA | PA + £2,162 | 19% |
Basic rate | PA + £2,162 | PA + £13,118 | 20% |
Intermediate rate | PA + £13,118 | PA + £31,092 | 21% |
Higher rate | PA + £31,092 | £125,140 | 42% |
Additional rate | £125,140 | - | 47% |
Personal allowance is the amount of income you do not get taxed on. The amount of personal allowance you recieve is dependant on your tax code.
Your tax code is built up of numbers, and then letters. The numbers represent the amount, and the letters represent your situation and how that affects your personal allowance. Usually, to calculate your personal allowance just multiply the tax code number part by 10. e.g. 1257L = £12,570. Click here to find out more about how the letters part of your tax code affect your personal allowance.
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