03/11/2026
🇬🇧 UK AUTUMN BUDGET 2026 – INCOME TAX UPDATE!
💷 Got a pay rise? You could be paying more tax than you think!
The Government has kept Income Tax rates unchanged, but tax thresholds remain frozen.
Here's what you need to know:
✅ Personal Allowance: £12,570
✅ Higher-rate threshold: £50,270
✅ Basic Income Tax rate: 20%
✅ Higher Income Tax rate: 40%
📊 Let's look at an example:
If your salary increases from £45,000 to £52,000:
Before: £6,486 Income Tax
After: £8,178 Income Tax
That's £1,692 MORE in Income Tax on a £7,000 pay rise!
This is an example of fiscal drag — as salaries increase while tax thresholds remain frozen, more of your earnings can fall into higher tax brackets.
⚠️ Remember, these calculations exclude National Insurance, pension contributions and other deductions.
A higher salary doesn't always mean you'll keep as much of your pay rise as you expect!
📍 LDN Financial Limited – Making UK Tax Simple!
📞 020 4619 7660
✉️ [email protected]
TaxUpdates LDNFinancial UKAccountant PersonalFinance AutumnBudget2026