Since April 2022, the UK income tax rates 2024/25 threshold has stayed frozen, with the next increase expected in April 2028. Read on for more information about the current UK income tax rates, Scotland’s separate tax system, and other relevant details.
Income Tax Rates England
The England, Wales, and Northern Ireland have three tax bands. For the 2024/25 tax year, the UK income tax rates are:
| Tax Bands | Taxable Incomes | Income Tax Rates 2024 UK |
|---|---|---|
|
Basic Rate |
Between £12,571 and £37,700 |
20% |
|
Higher Rate |
Between £37,701 and £125,140 |
40% |
|
Additional Rate |
More than £125,141 |
45% |
Incomes below the current personal allowance (PA) of £12,570 are not taxed. This frozen tax-free threshold remains effective until 2028. The additional rate threshold (ART) was lowered from April 2023 to align with this personal allowance taper. The two frozen rates (PA and ART) are expected to remain until 2028.
To work out income tax rates UK accurately, use our UK tax calculator for the employed and self-employed. However, note that the outcomes are just rough estimates and do not substitute a tax expert’s advice.
Income Tax Rates for the Previous Years
Here is a quick glance at how income tax has changed in the past three years up to the 2023/24 tax year:
| Tax Bands | 2021/22 | 2022/23 | 2023/24 | Rates |
|---|---|---|---|---|
|
Personal Allowance |
£12,500 |
£12,570 |
£12,570 |
0% |
|
Basic Rate |
Up to £37,500 |
Up to £37,700 |
Up to £37,700 |
20% |
|
Higher Rate |
£37,501 to £150,000 |
£37,701 to £150,000 |
£37,701 to £125,140 |
40% |
|
Additional Rate |
Over £150,001 |
Over £150,001 |
Over £125,141 |
45% |
For more information, browse through the government’s archive of UK income tax rates history graph.
National Insurance Contributions
To align with the tapered personal allowance, the National Insurance, a direct tax alongside income tax, was cut by 2%, each for the employed and self-employed. In the 2024/25 tax year, the National Insurance rates for employees are at 8%, whilst self-employed people 6%.
Marriage Allowance
Married couples and civil partners are entitled to a transferable tax allowance of £1,260, tax-free for the recipient. The lower-earning spouse can transfer this maximum amount to the higher–earning basic rate-paying partner, reducing the former’s personal allowance of £12,570 to £11,310. Any income left after £11,310 is taxed. Learn how to claim marriage allowance here.
Income Tax Rates Scotland
Scotland has six income tax brackets. For the 2024/25 tax year, Scottish income taxpayers pay at the following rates:
| Tax Bands | Taxable Incomes | Income Tax Rates |
|---|---|---|
|
Starter Rate |
Between £12,571 and £14,876 |
19% |
|
Basic Rate |
Between £14,877 and £26,561 |
20% |
|
Intermediate Rate |
Between £26,562 and £43,662 |
21% |
|
Higher Rate |
Between £43,663 and £75,000 |
42% |
|
Advanced Rate |
Between £75,001 and £125,140 |
45% |
|
Top Rate |
Above £125,140 |
48% |
The advanced income tax bracket is a new addition to the Scottish income tax system from April 2024. The first four tax bands remain the same.
Frequently Asked Questions
The UK has a progressive tax system, and currently, England, Northern Ireland, and Wales have three tax bands. Scotland has six. The current personal allowance remains £12,570 up to April 2028.
Non-residents pay UK taxes on their UK incomes, such as pension, rental income, capital gains, etc.
The UK’s tax year begins on 6 April to 5 April the next year.
Tax year and fiscal year are interchangeable terms in the UK, both of which run from 6 April to 5 April the next year? Financial year, on the other hand, runs from 1 April to 31 March.
There are many ways how to reduce income tax for self-employed people. For more personalised and accurate advice, be sure to seek guidance from tax professionals.
Why Legend Financial for Your Tax Returns
Income tax rates 2024 have yet to wait until April 2028 for major changes. With the frozen threshold since 2022, many taxpayers, given the payroll wage increases, are moved into higher tax bands or get taxed higher.
Sorting your tax affairs does not only involve filing your personal income tax returns but also planning. Legend Financial’s tax planning experts are here to help you in both matters. We have assisted a lot of clients throughout the UK in their tax planning and filing needs, even during HMRC investigations, many of whom remain our loyal clients. Talk to one of our tax accountants today!
