Income Tax Brackets

Taxes are calculated depending on your total income from all sources and collected by HMRC and you will fall into one of many UK tax brackets based upon your earnings.

The new 50% tax bracket remains after the latest budget and personal allowances have also changed which will mean new tax codes and perhaps changes in the amount of tax you pay based on your overall income earned during the year.

Working out your personal tax bracket

To calcuate your overall tax liability first you need to add all your income and earnings together for the past 12 months when the tax year finishes on 6th April of any year. You then get various tax allowances, reliefs and credits which when deducted provides you with the amount in which to calculate your tax liability. The rate of tax is charged in bands or tax brackets and these are shown as follows :

Tax Brackets 2010-2011

For the year 2010-2011 (ending April 5th) the following brackets are used by HMRC to calculate taxes due:

Tax Brackets 2011-2012

For the year 2011-2012 (ending April 5th) the following brackets are used by HMRC to calculate taxes due:

(*) The 10% starting rate is for savings income only. If your non-savings income is above this limit then the 10% starting rate for savings does not apply

History of Tax Brackets

If you want to see how these have changed over the past few years then check out the information below !

Tax YearBand 1Band 2Band 3Band 4
2011/1210% to £2,560 (*)20% to £35,00040% to £150,00050% over £150,000
2010/1110% to £2,440 (*)20% to £37,40040% to £150,00050% over £150,000
2009/1010% to £2,440 (*)20% to £37,40040% to £150,00050% over £150,000
2008/0910% to £2,32022% to £34,80040% over £34,800na
2007/0810% to £2,23022% to £34,60040% over £34,600na
2006/0710% to £2,15022% to £33,30040% over £33,300na
2005/0610% to £2,09022% to £32,40040% over £32,400na
2004/0510% to £2,02022% to £31,40040% over £31,400na
2003/0410% to £1,96022% to £30,50040% over £30,500na
2002/0310% to £1,92022% to £29,90040% over £29,900na
2001/0210% to £1,88022% to £29,40040% over £29,400na
2000/0110% to £1,52022% to £28,40040% over £28,400na
1999/0010% to £1,50023% to £28,00040% over £28,000na
1998/9920% to £4,30023% to £27,10040% over £27,100na
1997/9820% to £4,10023% to £26,10040% over £26,100na
1996/9720% to £3,90024% to £25,50040% over £25,500na
1995/9620% to £3,20025% to £24,30040% over £24,300na
1994/9520% to £3,00025% to £23,70040% over £23,700na

(*) for savings income only - not other earnings.