2025/26 Income Tax

lastbigspender

Hi

Can anyone help, I have just notice on the Gov.uk website the income tax thresholds are changing for April 2025 

20% £37,700
40% £37,701 to £125,140
45% £125,141 above

Yes this correct and will it have big impact if you earn say £8k above the £37,701 as this year it was 20% up to £50,270.

Thanks

Dazed_and_C0nfused

lastbigspender said:

Hi

Can anyone help, I have just notice on the Gov.uk website the income tax thresholds are changing for April 2025 

20% £37,700
40% £37,701 to £125,140
45% £125,141 above

Yes this correct and will it have big impact if you earn say £8k above the £37,701 as this year it was 20% up to £50,270.

Thanks

You have completely misunderstood!

They are also this years rate bands, nothing has changed.

You need to add in the Personal Allowance (assuming your adjusted net income is less than £100,002).

lastbigspender

So these bands are actually in place at the moment then?

Dazed_and_C0nfused

lastbigspender said:

So these bands are actually in place at the moment then?

Yes.

Say you have a very simple tax position. 2025-26 tax year.  Taxable earnings of £55,000, no other income, allowances or reliefs and not Scottish resident.

£12,570 covered by Personal Allowance 
£37,700 taxed at 20% 
£4,730 taxed at 40%

NoMore

Surprised it took so long to appear here, been fighting this BS all day on Social Media, appears this Rates and thresholds for employers 2025 to 2026 - GOV.UK has gone viral and people are either deliberately misrepresenting it or accidentally misunderstanding it. 

This is for the employers and the important bit on the table (which everybody ignores) is ABOVE THE PAYE THRESHOLD. The PAYE threshold is still £12570, so the 40% tax band still kicks in at £50270 (£12570 + £37700). No surprise as nothing at all has changed!

NoMore

Just to prove nothing has changed here's the same page for 2024/25 

Rates and thresholds for employers 2024 to 2025 - GOV.UK

and for 2023/24

Rates and thresholds for employers 2023 to 2024 - GOV.UK

lastbigspender

NoMore said:

Surprised it took so long to appear here, been fighting this BS all day on Social Media, appears this Rates and thresholds for employers 2025 to 2026 - GOV.UK has gone viral and people are either deliberately misrepresenting it or accidentally misunderstanding it. 

This is for the employers and the important bit on the table (which everybody ignores) is ABOVE THE PAYE THRESHOLD. The PAYE threshold is still £12570, so the 40% tax band still kicks in at £50270 (£12570 + £37700). No surprise as nothing at all has changed!

Well explained thank you

eskbanker

NoMore said:

Surprised it took so long to appear here, been fighting this BS all day on Social Media, appears this Rates and thresholds for employers 2025 to 2026 - GOV.UK has gone viral and people are either deliberately misrepresenting it or accidentally misunderstanding it.

Fiscal knuckle-draggers?

Albermarle

Surprised it took so long to appear here, been fighting this BS all day on Social Media, appears this Rates and thresholds for employers 2025 to 2026 - GOV.UK has gone viral and people are either deliberately misrepresenting it or accidentally misunderstanding it. 

If you read any media story along these lines and read the comments ( if there is a facility to make comments), you can see a sizeable minority immediately jump to the most negative possible conclusion.

Dazed_and_C0nfused

Albermarle said:

Surprised it took so long to appear here, been fighting this BS all day on Social Media, appears this Rates and thresholds for employers 2025 to 2026 - GOV.UK has gone viral and people are either deliberately misrepresenting it or accidentally misunderstanding it. 

If you read any media story along these lines and read the comments ( if there is a facility to make comments), you can see a sizeable minority immediately jump to the most negative possible conclusion.

Often coupled with a complete lack of any actual knowledge about what they are commenting on!

uknick

Dazed_and_C0nfused said:

Often coupled with a complete lack of any actual knowledge about what they are commenting on!

Are we still talking about tax payers, or have we moved onto politicians?