Income Tax Bands 2018/2019

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

Band Taxable Income Tax rate
Personal Allowance Up to £11,850 0%
Basic rate £11,851 to £46,350 20%
Higher rate £46,351 to £150,000 40%
Additional rate over £150,000 45%

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.

About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of - the UK small business finance blog for the self-employed community. Here she shares simple, straight-forward guides to make self-employment topics like taxes, bookkeeping and banking easy to understand.