Additional Tax Rate

The additional tax rate is the highest level of income tax in the UK and is payable when you earn over £125,140 per year. For the 2023/2024 tax year, the additional tax rate is 45% of your earnings over the threshold. If you are earning below £125,140, your tax obligations will be different, so please ensure that you check our tax calculator to get full information about your own payments.

Income Tax is obligatory and paid by everyone in the UK earning over £12,570 per year. The first £12,570 is tax-free and is called the Personal Allowance. However, when you earn over £100,000 per year, you gradually lose your eligibility for this allowance, £1 at a time. Different brackets of your income will be taxed at different rates, so contact our accountants for more advice, or take a look at our guide to the tax implications of earning over £100,000 per year to learn more.

If an individual has in excess of £125,140 and the dividends are above the threshold then the 39.35% rate will apply rather than the 45% rate.