How Tax Brackets Work - Income Tax Explained

A quick explanation of how income tax works and how much tax you pay. If you've ever wondered how tax brackets work, I try and explain it in the simplest form for everyone to understand :)

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[RetroDodo]

A very simple image, i like that! What get's people confused also i the national insurance contributions ON TOP of the tax. So I think (i may be wrong) from April 2022, if you earn £100k, you have to pay approx £7k of NI contributions, making your £100k profit come down to 66.5k approx in earnings (after tax and ni). Maybe that's why people are getting the 40% tax on all earnings concept wrong, because after tax + NI it's not far off?

[JesseNyberg]

Nice video Oliur! As a freelance designer, knowing about taxes is super important.

[jayb]

I did not know about how they tax your income! Thank you for clearing up how it works

[heinrichpistorius]

Great video. They really need to teach this in schools.

[ManchesterTechGuy]

Straight to the point and simple to understand. Thank you!

[zayaanzakir]

They don’t teach everyone income tax in school but hey “Mitochondria is the power house of the cell” 🙂

[jayb]

Can i ask 1 question? If you have a 1million pound a year income, what is the tax going to be?

[eddie]

Original image credit goes to Mona Chalabi