New Tax Year (06/04/2019) Rates and thresholds
If you are in employment (PAYE) these are the Income tax rates in the tax year 06/04/2019 – 05/04/2020
Income tax bands are due to rise on 6 April 2019. This applies to England, Wales and Northern Ireland.
Income taxes in Scotland are different. Find out more income taxes in Scotland.
Income up to £12,500 – 0% income tax. This is your personal tax-free allowance.
Income between £12,501 and £50,000 – 20% income tax
Income between £50,001 and £150,000 – 40% income tax
Income above £150,001 – 45% income tax
Note that your personal allowance will reduce by £1 for every £2 you earn over £100,000. So, by the time you earn, £125,000, you’ll pay income tax on everything you earn and get no personal tax-free allowance.
One of the most common queries we receive is clients asking us why they are being deducted anything from their wages, when they have not earned more than their tax-free allowance in the tax year to date.
For the new tax year starting 06/04/2019 your personal tax allowance is £12,500 in the tax year, as shown above, however, people often overlook the fact that National Insurance thresholds are considerably lower than those for tax.
If you earn more than £8,632 per year/£719 per month you will be deducted NI from your wages @ 12% of the amount above £8,632 per year/£719 per month*
*Up to £50,000 per year/£4,167 per month