Question 1

How much tax do I pay on a £30,000 salary in the UK?

Accepted Answer

On a £30,000 salary in 2025/26, you pay £3,486 in income tax (20% on earnings above the £12,570 personal allowance) and £1,394.40 in National Insurance (8% on earnings between £12,570 and £50,270). Your total take-home pay is approximately £25,119.60 per year or £2,093.30 per month.

Question 2

What is the personal allowance for the 2025/26 tax year?

Accepted Answer

The personal allowance for 2025/26 is £12,570. This is the amount you can earn before paying any income tax. If you earn over £100,000, your personal allowance is reduced by £1 for every £2 earned above £100,000, meaning it reaches zero at £125,140.

Question 3

How does National Insurance affect my take-home pay?

Accepted Answer

In 2025/26, you pay 8% National Insurance on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. For example, on a £40,000 salary, you pay £2,194.40 in NI contributions, reducing your monthly take-home pay by about £182.87.

Question 4

Do I pay more tax in Scotland than England?

Accepted Answer

Scotland has different income tax rates with five bands: starter (19%), basic (20%), intermediate (21%), higher (42%), and top (47%). Lower earners may pay slightly less tax in Scotland, while higher earners generally pay more. For example, someone earning £50,000 pays around £600 more in Scotland than in England.

Question 5

What is the £100,000 tax trap?

Accepted Answer

When you earn over £100,000, your £12,570 personal allowance is reduced by £1 for every £2 earned above £100,000. This creates an effective 60% tax rate on income between £100,000 and £125,140. For every additional £100 earned in this range, you lose £50 of personal allowance plus pay 40% tax on the £100, keeping only about £40.

Question 6

How do pension contributions reduce my tax bill?

Accepted Answer

Pension contributions are deducted from your gross salary before tax is calculated, reducing your taxable income. A 5% pension contribution on a £40,000 salary saves £400 in tax for a basic rate taxpayer. Higher rate taxpayers save even more — a £2,000 contribution at 40% saves £800 in tax. Salary sacrifice pension contributions also reduce National Insurance.

Question 7

How much National Insurance was cut in 2025/26?

Accepted Answer

The employee National Insurance rate dropped from 10% to 8% in the 2025/26 tax year. On a £35,000 salary, this saves approximately £449.40 per year compared to 2024/25 rates. The NI threshold remains at £12,570, aligning with the personal allowance for income tax.