UK Tax Rates and Personal Allowance
This guide explains Income Tax rates and Personal Allowances for citizens living in the United Kingdom. Additional information clarifies how tax bands and the current tax thresholds work.
CURRENT TAX ALLOWANCE: The basic rate payable in England, Wales, and Northern Ireland is 20% on taxable income up to £46,350.
In Scotland, the basic rate payable is also 20% on taxable income. But the upper threshold for the Scottish intermediate rate is £43,430.
The exact amount of Income Tax due in each tax year varies and it usually depends on:
- How much you earn above the current Personal Allowance. This refers to the amount of income each individual can receive free of tax each year.
- How much of the income falls within the current UK tax bands.
Even so, Income Tax laws apportion some of your earnings as a tax-free amount each tax year. The current tax year started from the 6th of April 2018 and runs through to the 5th of April of 2019.
Tax Free Personal Allowance 2018/19
Each year the government set an amount of income that is not liable for tax. The standard Personal Allowance for the tax year 2018/19 is £11,850.
Personal Allowances can be bigger for some individuals and couples. For example, it will be higher if you claim the Blind Person Allowance or Marriage Allowance. But, it will be lower if you have an income over £100,000.
Current UK PAYE Income Tax Rates and Bands
The current UK tax rates table shows how much you pay in each band based on a standard Personal Allowance of £11,850.
| Income Tax Band | Taxable Income | Tax Percentage Rate |
|---|---|---|
| Standard Personal Allowance | Up to £11,850 | Non-taxpayer (0%) |
| Basic Rate | Between £11,851 and £46,350 | 20% |
| Higher Rate | Between £46.351 and £150,000 | 40% |
| Additional Rate | £150,001 and above | 45% |
Follow UK Rules for 2019 Updates!
Note: There is no Personal Allowance on taxable income over £123,700. Different income tax band rules apply if you live in Scotland.
Employed or Receiving a Pension
When you check your Income Tax for the current year you will be able to see:
- How much Personal Allowance you get and your tax code.
- What tax you paid in the current tax year.
- The amount of tax you are likely to pay for the remainder of the year.
Allowances for Savings and Dividends
As a rule tax-free allowances apply for both:
- Savings interest.
- Tax on dividends (e.g. owning shares in a company).
Note: Personal taxation is liable on any interest or share dividends above your current tax-free allowance.
There are other situations where you may also qualify for tax-free allowances, such as:
- The first £1,000 of income when working for yourself (called your 'trading allowance').
- The first £1,000 of income from renting out your property (unless you use the Rent a Room Scheme).
Note: Read further guidance to see if you qualify for tax-free allowances on property and trading income.
Income Tax Reliefs (paying less)
In some cases you may qualify to claim Income Tax reliefs. There are some automatic types of tax relief and there are others that you need to apply for.
Married Couple or Civil Partnership
Some married couples, and those in civil partnerships, can claim the Marriage Tax Allowance. This helps to reduce tax paid by your partner providing your income is lower than the standard Personal Allowance.
There is an alternative to claiming Marriage Allowance if you or your partner were born before the 6th of April 1935. You may get extra tax relief if you qualify to claim Married Couple's Allowance instead.
Standard Personal Allowance in Previous Tax Years
The standard Personal Allowance was £11,500 during the tax year from 6th of April 2017 to 5th of April 2018.
| Current Rates of Income Tax | Taxable Income above Personal Allowance for the tax year 2017 to 2018 |
|---|---|
| Basic Rate 20% | People with a standard Personal Allowance between £0 and £33,500 started paying 20% on income over £11,500 |
| Higher Rate 40% | People with a standard Personal Allowance between £33,501 and £150,000 started paying 40% on income over £45,000 |
| Additional Rate 45% | Income Above £150,000 |
Note: Personal Allowances would have been higher in some case and less if your income was over £100,000. HM Revenue and Customs publish historical tax rate tables for past tax years.
Income above £100,000
Personal Allowance will go down by £1 for every £2 if the adjusted net income is over £100,000. That means the allowance is zero for those with income from £123,700. In this case you should also fill in a Self Assessment tax return.
Register before the 5th of October in the tax year following when you had the income if you do not usually send in a tax return. HMRC will send you a letter informing you of the next steps after registration.
Income Tax Rates and Current Personal Allowances in the United Kingdom