What income tax band am I in?
Once you know your personal allowance, anything earned above this will be liable to income tax. For the 2017/18 tax year, there are three defined income tax bands, including the 40% tax bracket and the 45% 'additional rate' bracket (Note : Your personal allowance starts to decrease once earnings hit £100,000)
|Under your personal allowance (PA)
For most, £11,500
|No income tax payable|
|Between PA and PA+£45,000
For most, £11,501 to £45,000
|Between PA+£45,001 and £150,000
For most, £45,001 to £150,000
These defined bands mean you only pay the specified tax rate on that portion of salary. For instance, if your salary puts you in the 40% tax bracket
(I.E - over the Personal Allowance of +£45,000 in 2017/18), then you only pay 40% tax on the segment of earnings in that income tax band.
For the lower part of your earnings, you'll still pay the appropriate 20% or 0%