Introduction to Income Tax and NICs Pay As You Earn and income tax
These tax periods are reflected in the tax tables, which are discussed later.
5.3
Frequency and date of payment
Usually, the frequency at which an employee is paid does not affect the overall income tax due in total for the tax year. However, the tax tables can be used to accommodate employees paid at frequencies such as fortnightly, four weekly or quarterly.
Generally, the date when the employee is paid determines the tax week or tax month.
Example 1 An employee paid monthly is paid June ’s salary on 23 June. This is in Month 3, which runs from 6 June to 5 July.
5.4
Tax rates and bands
Rest of the UK
There are three income tax rates and bands for England, Wales and Northern Ireland (rUK). The bands have been frozen up to and including tax year 2027-28.
rUK tax rates and bands
2022-23 £
2023-24 £
Taxable bands
Rates
Rest of the UK
Basic
20%
1 to 37,700
1 to 37,700
40%
37,701 to 150,000
37,701 to 150,000
Higher
Additional
45%
above 150,000
above 125,140
Higher Rate Threshold
50,270
50,270
From 6 April 2023, the additional rate tax threshold will be lowered from £150,000 to £125,140.
Scottish income tax
Power has been devolved to the Scottish Government that allows it to set the level of tax rates as well as the tax bands from the tax year 2017-18 onwards. After a few years of mirroring the rest of the UK (rUK), the Scottish Government introduced different bands and rates for Scottish taxpayers in April 2019.
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