Tax Bands

Generally tax bands in the United Kingdom cover three distinct areas.

Earnings
The tax system is called PAYE (Pay As You Earn). Usually your employer will sort out your tax due to HMRC (Her Majestys Revenue & Customs). The tax band depends on the amount you earn.

Property
This is usually called council tax and it varies across the country and depends on the rateable value of your home to what tax band it falls

Cars
As of 2001 all cars in the UK are taxed on their engine size and CO2 emissions.

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Tax bands for cars

Calculate the cost of vehicle tax for your vehicle using the car tax band calculator. Need to quickly understand how much your road tax price will increase (or decrease!) over the next few years? Look no further, all the info you need on road tax bands and road tax prices is here.

Cars registered on or after 1 March 2001 (based on fuel type and CO2 emissions)

The rates shown only apply to cars that have been type approved in category M1 and registered on the basis of CO2 emissions measured in grams per kilometre (g/km) driven. These details are shown on the registration certificate (V5C).

Vehicle tax rates for cars registered on or after 1 March 2001 are split into 13 bands depending on CO2 emissions. The amount you'll pay depends on which band your car is in. The lower a car’s emissions, the lower the vehicle tax payable on it.

Tax bands for houses

Council Tax Rates vary dependent on which area you live, and is set by the valuation of your property. There are certain exceptions which may apply to council tax costs but to confirm if you may be eligible for a Discount or Exception you must check with your local council.

Generally in England and Wales, Council Tax is applied as follows and is based on house prices as at April 1991:

Tax Bands for earnings

Income Tax is a tax on income. Not all income is taxable - and you're only taxed on 'taxable income' above a certain level. Even then, there are other reliefs and allowances that can reduce your Income Tax bill - and in some cases mean you have no tax to pay.