Do you or your employees earn over £100,00.00 through PAYE
If so, read below and call HMRC on 0300 200 3200 to let them know your earnings for the year. They will adjust your tax code accordingly to save any issues down the line.
Alternatively, sign into your Personal Tax Account
Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £125,140 or above.
You’ll also need to do a Self Assessment tax return.
Register for Self-Assessment (or speak to your Accountant)
Current rates and allowances
How much Income Tax you pay in each tax year depends on:
How much of your income is above your Personal Allowance
How much of your income falls within each tax band
Your Tax-Free Personal Allowance
The standard Personal Allowance is £12,570, 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 Personal Allowance
The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,570. Income tax bands are different if you live in Scotland.
Band Taxable Income Tax Rate
Personal Allowance Up to £12,570.00 0%
Basic Rate £12,571 to £50,270 20%
Higher Rate £50,271 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 £125,140.
If you’re employed or get a pension Check your Income Tax to see:
your Personal Allowance and tax code
how much tax you’ve paid in the current tax year
how much you’re likely to pay for the rest of the year
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.