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  • Basic rate 20%: if you earn between £12,501 and £50,000
  • Higher rate 40%: if you earn between £50,001 and £150,000
  • Additional rate 45%: if you earn over £150,000

Once you earn £100,000, your Personal Allowance amount reduced by £1 for every £2 extra you earn. By the time you earn £125,000, your Personal Allowance is completely cancelled out. This means that those earning from £125,000 are not receiving any tax free Personal Allowance on their income.

These tax bands only apply in England, Northern Ireland and Wales. The Scottish Government set their own income tax rates which will be announced on 12th December 2018.