top of page

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


man sitting reviewing tax documents with his colleague

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



Comments


Commenting has been turned off.
bottom of page