What are the UK tax brackets?

The UK Tax Bands, or Income Tax Rates, determine how much income goes to HMRC. There are three main tax bands for most people: the basic rate, higher rate, and additional rate. When your income enters a new tax bracket, that bracket's rate applies to the additional earnings. Your tax band affects the amount of tax you pay, so it's essential to check your tax code for accuracy.

If you’re confused about the tax bracket you’re in or think your tax code might be wrong, you can talk to us. If there’s a problem, we’ll find it and fix it – and make sure youHeadline get back any tax back you’re owed!

2023/2024 Income Tax Brackets
The income tax bands for England and Northern Ireland in 2023/2024 are as follows:
- Personal Allowance: Up to £12,570 tax-free
- Basic Rate: £12,571 to £50,270 is taxed at 20%
- Higher Rate: £50,271 to £150,000 is taxed at 40%
- Additional Rate: Anything over £150,000 is taxed at 45%
Scotland and Wales have their own tax bands. Wales generally aligns with England and Northern Ireland, while Scotland has unique rates.
- Scottish Personal Allowance: Up to £12,570 tax-free
- Scottish Starter rate: £12,571 - £14,732 is taxed at 19%
- Scottish Basic Rate: £14,733 - £25,688 is taxed at 20%
- Scottish Intermediate Rate: £25,689 - £43,662 is taxed at 21%
- Scottish Higher Rate: £43,663 - £125,140 is taxed at 42%
- Scottish Top Rate: Anything over £1125,141 is taxed at 47%
Tax relief allows you to claim refunds for certain work-related expenses. The amount you can claim depends on your expenses and tax band. For claims exceeding £2,500, a Self Assessment tax return may be required.

What is a Personal Tax Allowance?

Almost everyone in the UK gets a tax-free Personal Allowance, which is the amount you can earn in a year without paying any tax. If you earn less than your Standard Personal Allowance, you won’t pay any tax on it at all. If you earn more, only income above your Personal Allowance will be taxed.

Here are some other UK tax allowances you might not know about:

Individuals (all)	£12,570
Marriage allowance*	£1,260
Minimum married couples allowance*	£3,530
Maximum married couples allowance*	£9,125
Income limit for married couple's allowances	£30,400 (allowances are abated if income limit exceeded)
Blind person's allowance	£2,600
Dividend allowance	£2,000
Property allowance	£1,000
Trading allowance	£1,000
Personal savings allowance (basic rate taxpayers)	£1,000
Personal savings allowance (higher rate taxpayers)	£500
Income limit for standard personal allowances	£100,000 (allowance completely lost once taxable income exceeds £125,140)

**Transferable allowance available to married couples and civil partners who are not in receipt of married couple’s allowance. The recipient spouse cannot be liable to higher or additional rate tax.

** Tax relief given at 10% where one partner was born before 6/4/1935

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When do I pay my tax bill?

If you're paid through the PAYE system, your employer handles your tax deductions and National Insurance Contributions (NICs) automatically. For self-employed individuals or those with additional untaxed income, the Self Assessment tax return system is used. Key deadlines for Self Assessment include January 31st for filing your tax return and paying any tax owed, July 31st for the second payment on account (if applicable), and October 31st for paper tax returns.

How does tax relief work?

Tax relief can put money back in your pocket by refunding certain essential work expenses. You can claim an HMRC tax rebate for expenses like business mileage, professional subscriptions, and necessary tool replacements. The more you spend on eligible expenses and the higher your tax band, the more tax you can reclaim. If your claims exceed £2,500, a Self Assessment tax return is necessary, which RIFT can handle for you.

Check out our tax refund claim checklist for more information on HMRC tax rebates, and to see how RIFT gets that money back in your pocket.

Tax Refund claim checklist