Scotland overtime after tax →6 bands: 19%-48%, Higher Rate at £43,663
Wales overtime after tax →Same rates as England, Higher Rate at £50,270
Northern Ireland overtime after tax →Same rates as England, Higher Rate at £50,270
How is overtime taxed in the UK?
Overtime pay is taxed as ordinary income under PAYE, there's no special overtime tax rate. Your overtime earnings are added to your regular salary and taxed at your marginal rate for that pay period.
For a basic rate taxpayer (salary below £50,270), overtime is taxed at 20% Income Tax and 8% NI, meaning you keep roughly 72p of every extra £1 earned. If overtime pushes you into the higher rate band (above £50,270), you'll pay 40% tax and 2% NI on the portion above the threshold, keeping around 58p per £1.
Salary sacrifice (e.g. pension contributions) can reduce your taxable income and marginal rate.
The figures above use time-and-a-half (1.5× your hourly rate), based on a standard 37.5-hour week. Actual overtime rates vary by employer, some pay double time or flat rate supplements.