NHS employees are required to pay Income Tax and National Insurance from their wages via the PAYE system. Overseas doctors are also required to contribute tax. How much you pay however, depends on how much you earn.
PAYE (Pay As You Earn)
Whilst working within the UK, you receive a certain amount of tax free income, also referred to as a personal allowance. In England, Scotland, Wales and Northern Ireland, the personal allowance is set at £12,500. Though if you earn over £125,000 you are not eligible for personal allowance. Any further pay earned is then taxed at the following amounts:
Current tax rates for England, Wales and Northern Ireland
| Band | Taxable Income | Tax Rate |
| Personal Allowance | Up to £12,500 | 0% |
| Basic Rate | £12,501 to £50,000 | 20% |
| Higher Rate | £50,001 to £150,000 | 40% |
| Additional Rate | Over £150,001 | 45% |
Current tax rates for Scotland
In Scotland the tax rates vary from the rest of the UK.
| Band | Taxable Income | Tax Rate |
| Personal Allowance | Up to £12,500 | 0% |
| Starter Rate | £12,501 to £14,549 | 19% |
| Basic Rate | £14,550 to £24,944 | 20% |
| Intermediate Rate | £24,945 to £43,430 | 21% |
| Higher Rate | £43,413 to £150,000 | 41% |
| Top Rate | Over £150,000 | 46% |
If you’d like to work out the exact amount of tax you’d be expected to pay, you can use this tool from the UK Government. It’s important to ensure that your tax code is correct as this will vary as your salary changes.
You will receive tax relief on pension payments as the NHS pension scheme is one of the best in the UK.
Choosing Your Next Role
Now you know more about the tax rates you’ll be expected to pay working for the NHS, it’s time to find your next role. Get in touch with our specialist consultants to take the first step towards your next job.