UK Income Tax (P.A.Y.E)

Tax is a something everyone in the UK and NHS have to pay. It is also called P.A.Y.E, meaning you pay it as you earn it (Pay As You Earn). In the case of the NHS it is automatically deducted from pay alongside Pension and National Insurance contributions.

This years UK Tax 2022/23

If you earn £12,570 a year (or less) you will pay Zero income tax;
If you earn over £12,570.01 and less than £50,270 a year you will have to pay 20% on anything earned between these figures;
If you earn over £50,270.01 a year you will be taxed at 40% on all earnings over that amount and also 20% on earnings between £12,570.01 & £50,270.00 a year;
If you earn over £150,000.00 you will pay the amount in the 20% bracket, 40% bracket and 45% on anything over £150,000 a year .

The following table also outlines what is stated above:

Band	Earnings	% of Tax
Tax Free	Up to £12,570.00 a year or £1,047.50 a month	Zero
Basic Rate	Up to £50,270.00 a year or £4,189.17 a month	20%
Higher	Up to £150,000.00 a year or £12,500.00 a month	40%
Additional	Up to £150,000.01 a year or over £12,500 a month	45%

Last years UK Tax 2020/21

In 2020/21 income Tax fell into four brackets and related to earnings from April 6th 2020 to April 5th 2021.

If you earned £12,500 a year or less you would not have paid any income tax;
If you earned over £12,500 and less than £50,000 a year you would have paid 20% on anything earned between these figures;
If you earned over £50,000 a year you would have been taxed at 40% on all earnings over £50,000 and also the 20% for earnings between £12,500 & £50,000;
If you earned over £150,000 you would have paid the amount owed in the 20% bracket, the 40% bracket and would have had to pay 45% on anything earned over £150,000.

The above is also shown in the following simplified table:

Band	Earnings	% of Tax
Tax Free	Up to £12,500 a year or up to £1,041 a month	No Tax
Basic Rate	Between £12,5001 & £50,000 a year or £1,041.75 & £4,166.67 a month	20%
Higher	Between £50,001 & £150,000 a year or £4,166.68 & £12,500 a month;	40%
Additional	Anything over £150,001 a year or over £12,500.01 a month	45%

The above is intended to be used as a guide, that applies for most people working in the NHS however there will be individuals who have a different tax code (for example, they may be paying back Tax arrears or have been put onto an emergency Tax code). If you are unsure it is always best to check with your relevant Payroll Department.

Sourced and simplified from the UK Government tax website including previous tax years and current 2022/23 tax years.