What income tax band am I in?

What income tax band am I in?

26-8-17

 

 

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)

What is my income tax rate 2017 / 18 ?
The current tax year is from 6 April 2017 to 5 April 2018
Earnings 2017/18 rate
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
20%
Between PA+£45,001 and £150,000
For most, £45,001 to £150,000
40%
Over £150,000 45%

 

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%

* You don’t get a Personal Allowance on taxable income over £123,000.

* For a further in depth explanation of your Tax Implications - Please Go to the HMRC/current-rates-and-allowances website

 

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