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2019-2020 Tax Rates and Thresholds

Not sure how much income tax to deduct from your employees? 

The amount of income tax you deduct from your employees depends on their tax code (https://www.gov.uk/employee-tax-codes) and how much of their taxable income is above their personal allowance (https://www.gov.uk/income-tax-rates/current-rates-and-allowances).

The tax thresholds and rates for England and Wales from 6 April 2019 up until 5 April 2020 are: -

Personal allowance

£240 per week

£1,042 per month

£12,500 per year

 

 

UK basic tax rate

 

20% on annual earnings above the PAYE tax threshold and up to £37,500

 

UK higher tax rate

 

40% on annual earnings from £37,501 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 2019 are:

  • 1250L W1
  • 1250L M1
  • 1250L X

To find out more about emergency tax codes please visit https://www.gov.uk/tax-codes/emergency-tax-codes.

For more detailed information on this, please visit https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2019-to-2020.