Income Tax Bands 2018/2019

    The Income Tax Bands for 2018/2019 in the UK are set as:

    BandTaxable IncomeTax rate
    Personal AllowanceUp to £11,8500%
    Basic rate£11,851 to £46,35020%
    Higher rate£46,351 to £150,00040%
    Additional rateover £150,00045%

    What is the Personal Allowance

    The personal allowance is the amount everyone in the UK is allowed to earn tax free. It changes every year and this is announced as part of the Governments Autumn Budget.

    What is Taxable Income

    Taxable income is the term given to earnings which UK individuals need to tell HMRC about.  It includes things like self employment profits, rental income and dividend income.

    How to Use the Income Tax Bands 2018/2019

    Louise receives a salary of £30,000 per year from her employer.  She will therefore pay income tax for 2018/2019 of £3,630.

    This can be worked out using the income tax bands in the table above:

    On the first £11,850 0%
    On the next £18,150 20% = £3,630

    Louise will also pay Class 1 National Insurance on her earnings and this is worked out separately.

    Anita Forrest
    About Anita Forrest

    Anita is a Chartered Accountant with over a decade of working with small business owners. She is the creator of the ‘Go Self Employed’ website, where she simplifies complicated self-employment topics such as taxes, bookkeeping, banking and insurance.