The Chancellor Rishi Shunak of the Exchequer delivered his Budget to Parliament on 11 March 2020 here is all you need to know about tax
Current rates and allowances
How much Income Tax you pay in each tax year depends on:
Some income is tax-free.
The current tax year is from 6 April 2019 to 5 April 2020.
Your tax-free Personal Allowance
The standard Personal Allowance is £12,500, which is the amount of income you do not have to pay tax on.
Your Personal Allowance may be bigger if you claim Marriage Allowance or Blind Person’s Allowance. It’s smaller if your income is over £100,000.
Income Tax rates and bands
The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,500.
Income tax bands are different if you live in Scotland.
Band Taxable income Tax rate
Personal Allowance – Up to £12,500 – 0%
Basic rate – £12,501 to £50,000 – 20%
Higher rate – £50,001 to £150,000 – 40%
Additional rate over – £150,000 – 45%
You can also see the rates and bands without the Personal Allowance. You do not get a Personal Allowance on taxable income over £125,000.
If you’re employed or get a pension
Check your Income Tax to see:
You have tax-free allowances for:
You may also have tax-free allowances for:
Find out whether you’re eligible for the trading and property allowances.
You pay tax on any interest, dividends or income over your allowances.
Paying less Income Tax
You may be able to claim Income Tax reliefs if you’re eligible for them.
If you’re married or in a civil partnership
You may be able to claim Marriage Allowance to reduce your partner’s tax if your income is less than the standard Personal Allowance.
If you do not claim Marriage Allowance and you or your partner were born before 6 April 1935, you may be able to claim Married Couple’s Allowance.
Click here to view full tax rate document