Question 1

What are the UK income tax rates for 2025?

Accepted Answer

UK income tax rates for 2025 are: Personal Allowance (0%) up to £12,570, Basic Rate (20%) from £12,571 to £50,270, Higher Rate (40%) from £50,271 to £125,140, and Additional Rate (45%) above £125,140. The Personal Allowance reduces by £1 for every £2 earned above £100,000.

Question 2

What is the UK Personal Allowance for 2025?

Accepted Answer

The UK Personal Allowance for 2025 is £12,570. This is the amount you can earn tax-free. However, if your income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 above this threshold, reaching zero at £125,140.

Question 3

How is National Insurance calculated in the UK?

Accepted Answer

Class 1 National Insurance Contributions (NICs) for employees in 2025 are: 0% on earnings up to £12,570 (Primary Threshold), 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Self-employed individuals pay Class 2 and Class 4 NICs at different rates.

Question 4

What is the higher rate tax threshold in the UK?

Accepted Answer

The higher rate tax threshold in the UK for 2025 is £50,271. Income between £50,271 and £125,140 is taxed at 40% (the higher rate). Below this threshold, the basic rate of 20% applies to income above the Personal Allowance of £12,570.

Question 5

What is the UK tax-free allowance for 2025?

Accepted Answer

The UK tax-free allowance (Personal Allowance) for 2025 is £12,570. Additionally, you may qualify for other allowances: Marriage Allowance (transfer £1,260 to spouse), Blind Person's Allowance (£3,070), and tax-free savings allowances for savings interest depending on your tax band.

🇬🇧 UK Tax Calculator 2025 - Income Tax & National Insurance

Calculate Your UK Tax Liability

🇬🇧 UK Tax Calculator 2025 - Income Tax & National Insurance

Calculate Your UK Tax Liability

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