Understanding Tax Rates and Allowances: A Guide for Businesses and Individuals.

UK-wide tax allowances

Allowance	2022-23	2023-24
Personal Allowance (regardless of age)	£12,570 pa	£12,570 pa
Income limit for Personal	£100,00	£100,00
Blind person's allowance	£2,600	£2,870
Marriage allowance	£1,260	£1,260

Income tax bands

Income tax band	2022-23	2023-24
Basic rate (20%)	£1 - £37,700	£1 - £37,700
Higher rate (40%)	£37,701 - £150,000	37,701 - £125,140
Additional rate (45%)	Over £150,00	Over £125,140
Emergency tax code	1257L	1257L

Emergency tax code

The emergency tax code is used when the UK tax authority (HMRC) doesn't have enough information to calculate your correct tax code. This is usually because you're a new employee, you've changed jobs, or you've claimed certain tax allowances or reliefs.

If you've been given an emergency tax code, it's important to act quickly to ensure you're not paying more tax than necessary. While you can contact HMRC directly, let Ben Accounting take the hassle out of the process for you