Below are the income tax rates for the UK:

1

UK Tax Levels

This means that you can earn up to £12,500 without paying tax, and you only get taxed on actual earnings above that levels.

For example:
If you earned £16,000 you will get £12,500 tax free and only pay tax on the remaining £3,500.

This would be in the 20% tax band so we can calculate the amount of tax by using the following equation:

Taxable earning x tax band percentage = Actual amount of tax to be paid

So the example above would be calculated as follows:

3500 x 0.2 = £700





Last modified: Friday, 7 August 2020, 10:36 AM