Marginal Tax Rate

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The tax you’ll pay on an additional £1 of income earned. This really depends on the income that falls into your personal allowance and the amount of remaining income you have in each tax band.
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Current income tax rates and bands:

• 0% if income <£12,570
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• 20% if income is between £12,571-£50,270
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• 40% if income is between £50,271-£150,000
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• 45% if income >£150,001
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Note, once your income exceeds £125,140 you lose your tax-free personal allowance.
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It’s important to know your marginal tax rate to know how much extra tax you’ll pay if you earn more money.

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