Currently income tax kicks in on earnings above £12,570 — anything you earn under that amount is tax free. After that, you pay 20 per cent income tax on your salary. The higher-rate threshold is £50,270 — and you pay 40 per cent income tax on earnings above this amount. But the income tax bands are set to remain at these levels until April 2026, eating into pay as inflation rockets. The rate of dividend tax paid on share income will also rise an extra 1.25 per cent.

Source: Daily Mail December 29, 2021 03:07 UTC