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In short
- Higher rate starts at £50,270 of taxable income in England, Wales and Northern Ireland; Scotland's 42% band starts at £43,663.
- Only income above the line is taxed at 40%.
- Your expenses claim is worth twice as much: 40p back per pound of relief instead of 20p.
- Pension contributions and Gift Aid need a claim to get the extra 20%.
Where it starts
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic | £12,571 to £50,270 | 20% |
| Higher | £50,271 to £125,140 | 40% |
| Additional | Over £125,140 | 45% |
What it does to your expenses claim
Relief is given at your marginal rate. A band 7 nurse or a senior offshore technician in the higher band gets 40% of their reliefs back. Nurses' NMC, RCN and uniform of about £450 becomes £180 a year rather than £90.
Pension and Gift Aid
Relief at source pensions and Gift Aid only give 20% automatically. The extra 20% is claimed through Self Assessment or by asking HMRC to adjust your code. Salary sacrifice and net pay pensions already give full relief.
Worked example
An offshore technician on £58,000 with £2,760 of travel and certificate relief a year: £1,104 back at 40%, £4,416 over 4 years before fee.
Questions
Child Benefit charge?
The High Income Child Benefit Charge starts at £60,000, separate from the 40% line.
Overtime pushed me over once.
Only the amount over the line is taxed at 40%, and only for that year.
This guide is general information, not advice about your circumstances. Figures use HMRC rates for the 2026 to 2027 tax year. We are a paid tax agent and not HMRC.
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