The short version: Basic rate is 20% Income Tax. You pay it on earnings between £12,571 and £50,270. Below that is your tax free Personal Allowance. Above that, you move into higher rates.
How Income Tax bands work
Your first £12,570 is tax free. From £12,571 to £50,270 you pay 20%. From £50,271 to £125,140 you pay 40%. Above £125,140 you pay 45%.
It’s not one flat rate on everything. If you earn £55,000, you pay 20% on £37,700 (the basic rate chunk) and 40% on the £4,730 that falls into the higher rate band.
What about Scotland?
Scotland has its own rates. They start lower but have more bands. If you’re based there, your tax code will start with S.
Does this apply to all income?
Income Tax applies to employment income, self employment profits, pensions, and most other earnings. Dividends and capital gains have their own separate rates.
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