The amount of income tax you deduct from your employees depends on their tax code

( and how much of their taxable income is above their personal allowance (

The tax thresholds and rates for England and Wales from 6 April 2018 up until 5 April 2019 are: -

Personal allowance

£228 per week

£988 per month

£11,850 per year



UK basic tax rate


20% on annual earnings above the PAYE tax threshold and up to £34,500


UK higher tax rate


40% on annual earnings from £34,501 to £150,000


UK additional tax rate


45% on annual earnings above £150,000


There are different rates for Scotland.

The emergency tax codes from 6 April 2018 are:

  • 1185L W1
  • 1185L M1
  • 1185L X

To find out more about emergency tax codes please visit

For more detailed information on this, please visit


Helen Fielding 19 February 2018