The income tax bands for the tax year 2019/20 are shown below. These are set by the Government and change every year.

Tax band for 2019/20 Taxable income Tax rate
 Personal Allowance  Up to £12,500  0%
 Basic rate  Between £12,501 and £50,000  20%
 Higher rate  Between £50,001 and £150,000  40%
 Additional rate  More than £150,000  45%

The tax you pay depends on your individual circumstances.

The above examples are based on current law and tax rates and may change. If you live in Scotland or Wales you may have a different income tax rate or band.

The amount you can earn in a tax year without paying tax is called your Personal Allowance. You’ll only pay tax on income over that allowance. The Personal Allowance drops by £1 for every £2 above £100,000. There is no Personal Allowance where income is higher than £125,000.

Tax will normally be taken off by the pension provider of your income before you receive it, and they’ll pay HMRC the tax you owe on your behalf. If you believe that your tax code is incorrect please contact HMRC who will issue a revised tax code if applicable. 

HMRC telephone number: 0300 200 3300