The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on.
The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,570.
Band | Taxable income | Tax rate |
Personal Allowance | Up to £12,570 | 0% |
Basic rate | £12,571 to £50,270 | 20% |
Higher rate | £50,271 to £150,000 | 40% |
Additional rate | over £150,000 | 45% |
An employee’s Class 1 National Insurance is made up of contributions:
The amounts deducted and paid depend on:
This table shows how much employers deduct from employees’ pay for the 2020 to 2021 tax year.
Category letter | £120 to £183 (£520 to £792 a month) | £183.01 to £962 (£792.01 to £4,167 a month) | Over £962 a week (£4,167 a month) |
A | 0% | 12% | 2% |
B | 0% | 5.85% | 2% |
C | N/A | N/A | N/A |
H | 0% | 12% | 2% |
J | 0% | 2% | 2% |
M | 0% | 12% | 2% |
Z | 0% | 2% | 2% |
Example If you’re in category A and you earn £1,000 in a week you’ll pay:
This means your National Insurance payment will be £94.24 for the week.
This table shows how much employers pay towards employees’ National Insurance for the 2020 to 2021 tax year.
Category letter | £120 to £169 (£520 to £732 a month) | £169.01 to £962 (732.01 to £4,167 a month) | Over £962 a week (£4,167 a month) |
A | 0% | 13.8% | 13.8% |
B | 0% | 13.8% | 13.8% |
C | 0% | 13.8% | 13.8% |
H | 0% | 0% | 13.8% |
J | 0% | 13.8% | 13.8% |
M | 0% | 0% | 13.8% |
Z | 0% | 0% | 13.8% |