Taxable Bands
The Chancellor announces the taxable bands and the rates of tax at the Budget Report which precedes the start of the tax year to which they relate. Generally speaking, Budget takes place in March.
Taxable Bands table Taxable Bands Allowances
2006-07 (£)
2007-08 (£)
Personal allowance
5,035
5,225
Starting rate 10%
0 - 2,150
0 - 2,230
Basic rate 22%
2,151 - 33,300
2,231 - 34,600
Higher rate 40%
over 33,300
over 34,600
Taken from the UM Revenue site - the table didn't transfer so the top line is this year and the bottom line next.
Basically you don't pay tax on the first £5000, 10% on the next £2000, 22% of the next £3000 and 40% of everything above that
You also have to pay National Insurance - which is basically another form of income tax and is a few percent.
(The Govt haven't updated the site -in the last budget the chancellor abolished the 10% rate, dropped the middle rate to 20% and changed the National insurance rates (which are pretty complicated) - bottom line is pretty similar to the above
And the rates on PPJN don't take tax into account