In tonight’s episode of Big Brother, the conversation among the housemates briefly turned to money and tax rates.
While Jenkin expressed that he was uncomfortable discussing the topic, Kerry was keen to engage in the conversation with others.
She told the housemates that she comes under the higher tax bracket with her managerial role in the NHS.
Big Brother viewers said she was “moaning” about coming under this tax bracket but what does it mean?
What does being in the highest tax bracket mean?
According to the government website, these are the “tax rates you pay in each band if you have a standard Personal Allowance of £12,570.”
This is the amount you can earn before you need to pay tax.
For those living in Scotland, these income tax bands are different.
Personal allowance
- Taxable income: up to £12,570
- Tax rate: 0%
Basic rate
- Taxable income: £12,571 to £50,270
- Tax rate: 20%
Higher rate
- Taxable income: £50,271 to £125,140
- Tax rate: 40%
Additional rate
- Taxable income: over £125,140
- Tax rate: 45%
Rates and bands without the Personal Allowance can also be found via the government website.
Personal Allowance isn’t available on taxable income over £125,140.
More information can be found via the government website.
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