Tax band意思
"Tax band" is a term used in the context of income tax in the United Kingdom. It refers to the range of income levels that are taxed at a particular rate. The UK tax system is progressive, meaning that as your income increases, you move into higher tax bands and pay a higher percentage of tax on the portions of your income that fall into those higher bands.
Here's a simplified example of how tax bands work in the UK:
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Personal Allowance: This is the amount of income you can earn tax-free. In the 2022/23 tax year, the personal allowance is £12,570.
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Basic Rate Band: Income above the personal allowance up to a certain threshold (£50,270 in the 2022/23 tax year) is taxed at the basic rate of 20%.
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Higher Rate Band: Income above the basic rate band threshold is taxed at the higher rate of 40%.
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Additional Rate Band: Income above a certain very high threshold (£150,000 in the 2022/23 tax year) is taxed at the additional rate of 45%.
When you earn income, it is divided into these tax bands, and the appropriate percentage of tax is applied to each portion. For example, if your income is £30,000, the first £12,570 is tax-free (Personal Allowance), and the remaining £17,430 is taxed at 20% (Basic Rate Band).
It's important to note that tax bands and rates can change, so it's always a good idea to check the latest information from HM Revenue and Customs (HMRC) or a tax professional for the most accurate and up-to-date information.