UK Tax Bands 2024/25

Income Tax Bands

Personal allowance (0% tax): first £12,570. Basic rate (20%): £12,571–£50,270. Higher rate (40%): £50,271–£125,140. Additional rate (45%): over £125,140. The personal allowance tapers to £0 between £100,000 and £125,140.

National Insurance

Employees pay 8% NI on earnings between £12,570 and £50,270, and 2% above £50,270 (2024/25 rates). Employers also pay 13.8% above £9,100, but this doesn't affect take-home pay.

Salary Sacrifice Pensions

Pension contributions via salary sacrifice reduce your gross pay before tax and NI calculations, making them highly tax-efficient. A 5% contribution on a £45,000 salary reduces your taxable income by £2,250, saving both income tax and NI.

Income Tax Calculator

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