Income tax uses progressive bands (20%, 40%, 45%) on taxable income above your personal allowance (£12,570 in 2024/25). Frozen thresholds since 2021 drag more pay into higher bands without a headline rate rise.
Class 1 employee NI is 8% between primary and upper limits, then 2% above. It is the second-largest payroll deduction for most workers after income tax.
Employers pay 13.8% Class 1 NI above the secondary threshold. The 2024 employer rate rise is widely treated as a hidden labour tax.
Dividends above the £500 allowance face 8.75%, 33.75% or 39.35% rates depending on income band. The allowance halving in 2023/24 raised effective investment taxes.
Savings interest is taxable once it exceeds the Personal Savings Allowance. Higher market rates since 2022 brought more savers into scope.
Earn over £60,000 and you may repay child benefit at 1% per £200 of income up to £80,000 — an extra marginal charge on families.
When thresholds are frozen but wages rise, you pay more tax in real terms. UK freezes run to at least 2028 — a major stealth tax.
Plan 2 repayments are 9% above £27,295 via PAYE. For many graduates this stacks on top of income tax and NI for decades.
Late Self Assessment penalties can exceed tax owed. Avoidable with on-time filing but a real cost for the self-employed and landlords.
VAT is embedded in almost everything you buy. Average households pay thousands yearly — a large stealth component of spending.
Fuel duty applies per litre before VAT. It remains one of the largest excise taxes on households who drive.
Structured by drink type and strength; built into shelf prices so consumers rarely see the tax split.
Among the highest effective tax rates in the UK; duty plus VAT dominate cigarette prices.
Charged per passenger leaving UK airports by distance band. Family holidays can incur hundreds in APD.
Paid by manufacturers on sugary drinks; passed through to retail prices as a health-motivated stealth charge.
Duties on betting and gaming reduce returns rather than appearing on payslips — a hidden cost for gamblers.
Required for live TV and BBC iPlayer (£169.50 from April 2024). A household levy separate from general taxation.
Based on 1991 property bands; funds local services. Annual increases add steady pressure on budgets.
Slice-based charge on purchases with first-time buyer relief and additional-property surcharges.
40% above nil-rate bands (£325k plus possible residence relief). Frozen thresholds catch more estates as prices rise.
18% or 24% on residential gains outside main-home relief; tight reporting deadlines for disposals.
Stacks on standard SDLT for second homes and buy-to-let purchases.
Mandatory fees when registering ownership changes — part of transaction costs.
10% or 20% on shares and funds outside wrappers after the annual exempt amount (greatly reduced in recent years).
Contributions above £60,000 (or tapered limits) face a charge reclaiming relief — key for high earners.
Income, dividends and gains outside ISAs face full tax. The £20,000 ISA allowance is the main shelter.
Trusts have dedicated income and CGT rules — powerful for estate planning but costly if misused.
Rates by emissions or list price for newer vehicles — fixed annual motoring cost.
VAT applies to the duty-inclusive price — a tax on a tax for drivers.
London ULEZ, Congestion Charge and city zones can cost commuters thousands yearly.
MOT testing and DVLA registration are mandatory ownership costs.
Fees and penalty notices paid to local authorities — material for urban drivers.
25% on profits over £250,000. Ultimately borne by workers, customers and shareholders via wages and prices.
Non-domestic rates on business premises — often passed into shop and service prices.
Employers with £3m+ pay bills pay 0.5% for apprenticeship funding.
Targets large digital platforms; incidence on ads and platform prices is debated.
Sector-specific charges that may flow through to loan pricing and fees.
Charged on business energy; much passes to household bills through suppliers.
Manufacturers pay on low-recycled plastic packaging — embedded in retail prices.
Escalating duty to discourage landfill — reflected in waste and council costs.
Passport and visa fees are mandatory payments for travel and immigration services.