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 2022 to 2023 tax year.
Category letter | £123 to £242 (£533 to £1,048 a month) | £242.01 to £967 (£1048.01 to £4,189 a month) | Over £967 a week (£4,189 a month) |
A | 0% | 13.25% | 3.25% |
B | 0% | 7.1% | 3.25% |
C | N/A | N/A | N/A |
H | 0% | 13.25% | 3.25% |
J | 0% | 3.25% | 3.25% |
M | 0% | 13.25% | 3.25% |
Z | 0% | 3.25% | 3.25% |
Example If you’re in category A and you earn £1,000 in a week you’ll pay:
This means your National Insurance payment would be £97.13 for the week.
This table shows how much employers pay towards employees’ National Insurance for the 2022 to 2023 tax year.
Category letter | £123 to £175 (£533 to £758 a month) | £175.01 to £481 (£732.01 to £2,083 a month) | £481.01 to £967 (£732.01 to £4,189 a month) | Over £967 a week (£4,189 a month) |
A | 0% | 15.05% | 15.05% | 15.05% |
B | 0% | 15.05% | 15.05% | 15.05% |
C | 0% | 15.05% | 15.05% | 15.05% |
H | 0% | 0% | 0% | 15.05% |
J | 0% | 15.05% | 15.05% | 15.05% |
M | 0% | 0% | 0% | 15.05% |
Z | 0% | 0% | 0% | 15.05% |