Basic Rate of Income Tax  

In the UK, the basic rate of income tax is 22%. It is the rate than most taxpayers will pay.

It is important to note that this is a marginal tax rate and so is only paid on income above the tax threshold.

In the UK, the tax threshold is £5,225 for 07-80

In the UK the tax threshold is about £5,225. Therefore, if you earn £6,225. You will pay tax at 22% on that first £1,000 of earnings. Therefore, with a salary of £6,225 you pay £100 tax.

10% Tax Rate

Note there used to be a 10% tax rate for income between £5226-£7455 But, this was scrapped in the 2007 budget as the chancellor cut basic rate from 24% to 22%

History of basic Rate of Income tax

Income Tax was introduced in 1799 by William Pitt the Younger to pay for the Napoleonic Wars, initially it was 2d in the pound for incomes over £60

In recent years, mid 1980s, the basic rate reached 33%

 

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