Income tax bands (no, not the music kind)
Lesson 5 of 16 in our free Work, Payslips & Tax guide: a 5-minute money game with the key points below.
Shown for England. Some rules here are different in Scotland, Wales and Northern Ireland: the lesson shows your nation's version.
This lesson is in the full version.
Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Work, Payslips & Tax is free for everyone.
Got a code? Unlock this lesson
Questions you'll answer
Mo's salary is £30,000 (England, tax code 1257L). Roughly how much income tax per year?
A pay rise takes you from £50,000 to £52,000. What happens?
Mo works part-time while studying and earns £11,000 this tax year from one job, on code 1257L. How much income tax should Mo pay overall?
Quick facts
- Fact: “Scotland has its own income tax bands, including 19%, 21% and 42% rates.” — Scottish taxpayers have six bands: starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%.
- Fact: “Where you live, not where your employer is, decides if you pay Scottish income tax.” — It's about your main home. Work in Carlisle, live in Dumfries? Scottish rates.
- Myth: “Students don't pay income tax.” — Same rules as everyone. Most students just earn under £12,570 a year, so pay none.
- Fact: “Income tax rates in Wales are currently the same as in England.” — Wales can set its own rates (C codes), but they currently match.
