United Kingdom Income Tax Rates for 2014
United Kingdom Income Tax Brackets
|Tax Bracket (yearly earnings)||Tax Rate (%)|
|£0 - £37,400||20.00%|
|£37,400 - £150,000||40.00%|
|£150,000 and up||50.00%|
United Kingdom has a bracketed income tax system with three income tax brackets, ranging from a low of 20.00% for those earning under £37,400 to a high of 50.00% for those earning more then £150,000 a year.
How does the United Kingdom Income Tax compare to the rest of the world?
The maximum income tax rate in United Kingdom of 50.00% ranks United Kingdom as one of the ten highest taxed countries in the world. Countries with similar tax brackets include Netherlands with a maximum tax bracket of 52.00%. Keep in mind that our ranking measures only nationwide income taxes, and does not account for local income taxes at state, province, or municipal levels.
|Maximum Income Tax||Income Tax Allowance||World Tax Rank|
|50.00%||£6,475 ($10,388 USD)||2nd of 34|
What is the United Kingdom Income Tax?
United Kingdom's personal income tax is a bracketed income tax that must be paid yearly by all citizens to the government of United Kingdom. Failure to pay, or underpayment of, the United Kingdom income tax can result in high fees, fines, or jail time.
In addition to United Kingdom's income tax, other taxes may apply to wages or profits earned, including social services, medical care, and capital gains taxes.
United Kingdom Income Tax Allowance
United Kingdom provides most taxpayers with an income tax allowance of £6,475, which can be kept as a tax-free personal allowance. United Kingdom's tax credit is a basic (fixed) tapered tax allowance available to all (single) taxpayers without dependents.
A tax credit is a fixed amount of money that may be kept by taxpayers without paying any income taxes. Generally, a tax credit is subtracted from your gross income before your taxable income is calculated.
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