29 articles tagged with Income Tax.
Quick reference for UK income tax 2025/26: rates and bands for England/Wales/NI and Scotland, plus Personal Allowance, NI thresholds, dividend rates, savings allowance and student loan thresholds
Between £100,000 and £125,140 your UK personal allowance tapers away, creating a 60% effective tax rate. How the trap works, who hits it, and how pension salary sacrifice can claw back £5,000+ a year.
£125,000 a year after tax in 2025/26 is about £77,032 net (£6,419/month). Full UK breakdown: personal allowance fully tapered, the 60% trap, when the additional rate begins and why £125,140 is the most expensive £1 in UK pay.
On a £150,000 UK salary you take home roughly £91,883 net (£7,657/month). The £100k–£125,140 band costs you 60% effective tax. Full 2025/26 breakdown and the pension salary-sacrifice fix.
£200,000 a year after tax in 2025/26 is about £117,335 net (£9,778/month). Full UK breakdown: 45% additional rate, lost personal allowance, NI, pension tapering risk and the real tax cost on a £200k salary.
£25,000 a year after tax in 2025/26 is £21,540 net (£1,795/month). Roughly what a 40-hour National Living Wage worker earns. Full breakdown of income tax, NI, Universal Credit interaction and the marginal rate that really matters at this salary.
£35,000 a year after tax in 2025/26 is £28,966 net (£2,414/month). Full breakdown of income tax, NI, pension and student loan deductions on a £35k salary — close to the UK median full-time wage.
£45,000 a year after tax in 2025/26 is £35,966 net (£2,997/month). Full UK breakdown of income tax, NI, student loan and pension on a £45k salary — squarely inside the basic rate band but close to the higher-rate threshold.
£55,000 a year after tax in 2025/26 is £42,936 net (£3,578/month). Full UK breakdown of income tax, NI and pension on a £55k salary — your first £4,730 inside the 40% higher-rate band.
£60,000 a year after tax in 2025/26 is £45,320 net (£3,777/month). Full breakdown of income tax, NI, pension and student loan deductions — and why every extra £1,000 above £50,270 only lands £580 in your bank account.
£70,000 a year after tax in 2025/26 is about £51,540 net (£4,295/month). Full UK breakdown: full personal allowance, basic and higher-rate income tax, employee NI, and how a £3,000 pension contribution reclaims a 42% marginal rate.
£75,000 a year after tax in 2025/26 is £53,820 net (£4,485/month). Of your salary £24,730 sits in the 40% higher-rate band — every extra £1,000 above £50,270 only nets £580. Full breakdown for 2025/26.
On an £80,000 UK salary you take home £56,003 net (£4,667/month) under the 1257L tax code with no student loan. Full breakdown of income tax, NI and pension trade-offs for 2025/26.
An £85,000 UK gross salary nets £59,143 take-home (£4,929/month) in 2025/26 — comfortably in the higher-rate band but well clear of the £100k taper. Full breakdown, Scotland comparison and pension tactics.
Sacrificing a £25,000 bonus into your pension at £105k income saves £15,000+ in the 60% tax trap. Full worked examples, employer NI passback, and how to time bonus sacrifice for 2025/26.
From April 2024 the UK aligned CGT on residential property and other assets at 18% basic / 24% higher. Side-by-side worked examples on a £40,000 share gain and a £40,000 BTL gain — same headline rate, different reliefs, different reporting deadlines.
Crystallise crypto losses to offset gains and shrink your Capital Gains Tax bill. With the CGT annual exempt amount cut to £3,000 in 2025/26, harvesting losses against share or property gains can save £720 (basic rate) or £1,440 (higher rate).
HMRC has sent you a new tax code on a P2 Coding Notice — here is what every line means, why your code changed, the 7 most common reasons, and how to challenge a wrong code in 2025/26.
The £1.073m Lifetime Allowance was abolished from 6 April 2024 and replaced by three new limits in 2025/26: Lump Sum Allowance (£268,275), Lump Sum and Death Benefit Allowance (£1,073,100), and an Overseas Transfer Allowance. Here's how the new framework works.
The tapered annual allowance starts at £260,000 threshold income and £260,000 adjusted income, cutting your £60,000 pension allowance by £1 for every £2 over the threshold — down to a £10,000 floor. Worked examples for 2025/26.
The UK personal allowance has been frozen at £12,570 since April 2021 and stays frozen until April 2028. Here's how fiscal drag quietly takes a four-figure bite out of your take-home pay.
Salary sacrifice cuts your taxable pay and adds employer NI savings. Pension, EV lease and Cycle to Work each have different mechanics — at £60k a year, a £400/month EV lease costs as little as £232 net; a £6,000 pension sacrifice costs £3,480.
Missing the 31 January Self Assessment deadline triggers an instant £100 penalty even if you owe no tax — then £10/day from day 90, plus 5% surcharges at 6 and 12 months. Late payment adds 7.75% interest in 2026. Full penalty schedule.
The triple lock will lift the State Pension in April 2026 by the highest of CPI, wage growth or 2.5%. Full forecast of the new weekly rate, annual uplift, and what it means for retirees.
You can't claim both. Tax-Free Childcare tops up your childcare account by 25% (up to £2,000 per child per year); the Universal Credit childcare element repays 85% of costs up to £1,031 per month for one child. Which suits which family in 2025/26?
Your effective tax rate is what you actually pay on average; your marginal rate is what the next £1 costs. Both matter — but for different decisions. Worked examples at £30k, £55k, £105k and £130k.
The 2025/26 personal allowance is £12,570 — but it tapers off above £100,000, varies if you claim Marriage Allowance, and behaves oddly with side income. Here's how it works.
Scottish income tax has 6 bands at 19%/20%/21%/42%/45%/48% — England's 3 bands run 20%/40%/45%. Worked comparison at £25k, £35k, £50k, £75k and £125k. Plus the Personal Allowance, LBTT and Plan 4 differences.
Part 1 of our Spring Budget 2026 deep-dive: how the Chancellor's income tax and personal allowance decisions reshape take-home pay for 2026/27, with worked examples at £25k, £45k, £75k and £125k.