Learn how to calculate your UK income tax before you move to the UK with this comprehensive guide, including a quick reference table for take home pay, income tax, and national insurance contributions.
For individuals considering a move to the United Kingdom, understanding the intricacies of the UK tax system is essential. Income tax and National Insurance Contributions (NICs) are two major components of the UK's revenue collection system, funding public services and welfare programs. In this article, we'll explore the UK income tax and NICs system from the perspective of someone planning to relocate, helping you grasp the basics and anticipate how much you may pay in these financial obligations.
Quick Reference Table: Take Home Pay, Income Tax, and National Insurance
For those seeking a convenient reference for calculating take-home pay, income tax, and National Insurance, please consult the table provided below. It's important to bear in mind that this table is primarily intended for individual taxpayers, as the Married Persons Allowance can vary depending on spousal income and personal circumstances. While this table will offer a rough estimate of your take-home pay, please be aware that it does not encompass additional deductions like pension contributions.
UK Income Tax Quick Reference Table (Excluding Scotland):
Annual Income | Monthly Pay | Monthly Income Tax | Monthly National Insurance | Monthly Estimated Take Home Pay |
|---|---|---|---|---|
£20,000 | £1,666.67 | £123.68 | £74.30 | £1,468.69 |
£25,000 | £2083.83 | £207.02 | £124.30 | £1752.01 |
£30,000 | £2500 | £290.35 | £174.30 | £2,035.35 |
£35,000 | £2,916.67 | £373.68 | £224.30 | £2,318.69 |
£40,000 | £3,333.33 | £457.02 | £274.30 | £2,602.01 |
£45,000 | £3,750 | £540.35 | £324.30 | £2,885.35 |
£50,000 | £4,166.67 | £623.68 | £374.30 | £3,168.69 |
£55,000 | £4,583.33 | £785.70 | £384.88 | £3,412.75 |
£60,000 | £5,000 | £952.37 | £393.22 | £3,654.41 |
£65,000 | £5,416.67 | £1,119.03 | £401.55 | £3,896.09 |
£70,000 | £5,833.33 | £1,285.70 | £409.88 | £4,137.75 |
£75,000 | £6,250 | £1,452.37 | £418.22 | £4,379.31 |
£80,000 | £6,666.67 | £1,619.03 | £426.55 | £4,621.09 |
£90,000 | £7,500 | £1,952.37 | £443.22 | £5,104.41 |
£100,000 | £8,333.33 | £2,285.70 | £459.88 | £5,587.75 |
£110,000 | £9,166.67 | £2,619.03 | £476.55 | £6,071.09 |
£120,000 | £10,000 | £2,952.37 | £493.22 | £6,554.41 |
£130,000 | £10,833.33 | £3,285.70 | £509.88 | £7,037.75 |
£150,000 | £12,500 | £4,003.54 | £543.22 | £7,953.24 |
It's essential to take into account that tax bands in Scotland vary, and as such, we have separate quick reference table for Scotland.
Scottish Income Tax Quick Reference Table:
Annual Income | Monthly Pay | Monthly Income Tax | Monthly National Insurance | Monthly Estimated Take Home Pay |
|---|---|---|---|---|
£20,000 | £1,666.67 | £121.88 | £74.30 | £1,470.49 |
£25,000 | £2083.83 | £205.22 | £124.30 | £1753.81 |
£30,000 | £2500 | £292.13 | £174.30 | £2,033.57 |
£35,000 | £2,916.67 | £379.63 | £224.30 | £2,312.74 |
£40,000 | £3,333.33 | £467.13 | £274.30 | £2,591.90 |
£45,000 | £3,750 | £577.89 | £324.30 | £2,847.81 |
£50,000 | £4,166.67 | £752.89 | £374.30 | £3,039.48 |
£55,000 | £4,583.33 | £927.89 | £384.88 | £3,270.56 |
£60,000 | £5,000 | £1,102.89 | £393.22 | £3,503.89 |
£65,000 | £5,416.67 | £1,277.89 | £401.55 | £3,737.23 |
£70,000 | £5,833.33 | £1,452.89 | £409.88 | £3,970.56 |
£75,000 | £6,250 | £1,627.89 | 418.22 | £4,203.89 |
£80,000 | £6,666.67 | £1,802.89 | £426.55 | £4,437.23 |
£90,000 | £7,500 | £2,152.89 | £443.22 | £4,903.89 |
£100,000 | £8,333.33 | £2,502.89 | £459.88 | £5,370.56 |
£110,000 | £9,166.67 | £2,852.89 | £476.55 | £5,837.23 |
£120,000 | £10,000 | £3,202.89 | £493.22 | £6,303.89 |
£130,000 | £10,833.33 | £3,552.89 | £509.88 | £6,770.56 |
£150,000 | £12,500 | £4,304.06 | £543.22 | £7,652.72 |
To estimate your UK income tax try the income tax and NI calculator.
Income Tax Rates and Bands
The UK income tax system is divided into various tax bands, each with its own corresponding tax rate. Below are the tax bands and rates for the current tax year which runs from 6 April 2023 to 5 April 2024.
Band | Taxable Income | Tax Rate | Notes | |
|---|---|---|---|---|
Personal Allowance | £12,570 | 0% | This is your tax free allowance and you do not pay tax on income up to £12,570. | |
Basic Rate | £12,571 to £50,270 | 20% | You pay 20% on income between £12,571 and £50,270 | |
Higher Rate | £50,271 to £125,140 | 40% | You pay 50% on income between £50,271 and £125,140 | |
Additional Rate | Over £125,140 | 45% | You pay 45% tax on income over £125,140 | |
If you live in Scotland, you income bands and rates differ:
Band | Taxable Income | Tax Rate | Notes | |
|---|---|---|---|---|
Personal Allowance | £12,570 | 0% | This is your tax free allowance and you do not pay tax on income up to £12,570. | |
Starter rate | £12,571 to £14,732 | 19% | You pay 19% on income between £12,571 and £14,732 | |
Basic Rate | £14,733 to £25,688 | 20% | You pay 20% on income between £14,733 and £25,688 | |
Intermediate Rate | £25,689 to £43,662 | 21% | You pay 21% on income between £25,689 and £43,662 | |
Higher Rate | £43,663 to £125,140 | 42% | You pay 42% on income between £43,663 and £125,140 | |
Top Rate | Over £125,140 | 47% | You pay 45% tax on income over £125,140 | |
National Insurance Contribution
In addition to income tax, you'll also need to contribute to the National Insurance system if you are working in the UK. NICs fund social welfare programs such as the National Health Service (NHS) and provide a safety net for individuals. There are different classes of NICs, and the amount you pay depends on your employment status, income, and other factors.
If you possess a Biometric Residence Permit (BRP), there's a possibility that you already have a National Insurance (NI) number, as it is typically printed on the back of your BRP. However, if you do not have an NI number, you will be obligated to pay emergency tax until one is assigned to you. The good news is that any extra tax paid during this period can be reclaimed at the conclusion of the tax year, provided you are subsequently assigned an NI number.
To calculate your exact contribution try this NI contribution calculator or refer to the quick reference tables above.
Exploring Tax Credits and Deductions
Apart from income tax, the UK offers various tax credits and deductions that can reduce your tax liability. Some common examples include the Marriage Allowance, which allows the transfer of a portion of your Personal Allowance to your spouse or civil partner, and the Working Tax Credit for those with lower incomes and families. If you are interested in understanding what tax credits which might be available to you, try the official tax credits calculator.
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