UK tax brackets for 2023?

What are the UK tax brackets for 2023?

Curious about the UK tax brackets for 2023? The UK tax system follows a progressive structure, featuring multiple brackets that levy higher rates as income rises. It is HMRC’s way of ensuring that you pay tax according to the income you generate. Register for self assessment and begin filing your self assessment tax return. Any miss from your end will result in hefty penalties.

How much is the Personal Allowance for 2023?

It serves as a government-set threshold, representing the annual income amount exempt from income tax. For the fiscal year 2023/24, the standard Personal Allowance is £12,5700. If you qualify for Marriage Allowance or Blind Person’s Allowance, this allowance might be even higher.

2023 Income Tax Rates

The tax brackets for the 2023/24 tax year:

2023 Income tax brackets

2022 Income Tax Rates

There has not been an increase or decrease from the previous year’s income tax rates or personal allowance.

In the 2022/23 tax year, the basic rate remained at 20%, applicable to income spanning £12,571 to £50,270. The higher rate, at 40%, was levied on income ranging from £50,271 to £150,000. Any income surpassing £150,000 incurred an additional rate of 45%.

Tax-Free Allowances for Individuals

Beyond the tax-free Personal Allowance, additional allowances exist for individuals in the UK. These cover savings interest and dividend income for shareholders. There are also tax-free allowances for the initial £1,000 of self-employment income (known as the ‘trading allowance’) and the first £1,000 of rental income (excluding the Rent a Room Scheme). You also have marriage allowances which reduces the tax burden. These are few of the allowances available for you.

Do you have other incomes and are you confused on your taxes? Do you need help in filing your tax return? Book a free consultation and clear any queries you have before signing up.

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