Putting the facts at your fingertips

Tax Rates & Tables

Five Rivers Chartered Accountant Tax Tables

2018/
2019

2019/
2020

2020/
2021

2021/
2022

2022/
2023

Class 1 NIC Thresholds

Lower Earnings Limit (LEL)

Monthly

£503

£512

£520

£520

£533

Annual

£6,036

£6,144

£6,240

£6,240

£6,396

Primary Threshold (PT)
(Employees start paying NI)

Monthly

£702

£719

£792

£797

£823

Annual

£8,424

£8,628

£9,500

£9,568

£9,880
£12,570
from 6th July

Secondary Threshold (ST)
(Employers start paying NI)

Monthly

£702

£719

£732

£737

£758

Annual

£8,424

£8,628

£8,784

£8,840

£9,100

Upper Earnings Limit (UEL)

Monthly

£3,863

£4,167

£4,167

£4,189

£4,189

Annual

£46,356

£50,000

£50,000

£50,270

£50,270

Upper Secondary Threshold (UST)
(Employers of employees under 21 don’t pay NI up to this point)

Monthly

£3,863

£4,167

£4,167

£4,189

£4,189

Annual

£46,356

£50,000

£50,000

£50,270

£50,270

Class 1 NIC Rates – EMPLOYERS

Above Secondary Threshold

Employers

13.8%

13.8%

13.8%

13.8%

15.05%

Rate below Upper Secondary Threshold

Employers

Nil

Nil

Nil

Nil

Nil

Class 1A rate on Expenses and Benefits

Employers

13.8%

13.8%

13.8%

13.8%

15.05%

Employment Allowance

Employers

£3,000

£3,000

£4,000

£4,000

£5,000

Class 1 NIC Rates – EMPLOYEES

Between PT and UEL

Employees

12%

12%

12%

12%

13.25%

Above UEL

Employees

2%

2%

2%

2%

3.25%

Class 2 NIC's

Small Profits Threshold

Annual

£6,205

£6,365

£6,475

£6,515

£6,725

Rate Payable

Weekly

£2.95

£3.00

£3.05

£3.05

£3.05

Class 4 NIC's

Lower Profits Limit (LPL)
Self employed start paying Class 4 NIC’s

£8,428

£8,632

£9,500

£9,568

£9,880
£12,570
from 6th July

Upper Profits Limit (UPL)
Self employed pay a lower rate

£46,350

£50,000

£50,000

£50,270

£50,270

Rate between LPL and UPL

9%

9%

9%

9%

10.25%

Rate above UPL

2%

2%

2%

2%

3.25%

National Minimum Wage Rates

Aged 25 and Over to March 2021
- Aged 23 and above from April 2021

£7.83

£8.21

£8.72

£8.91

£9.50

Aged 21-24 inclusive to March 2021
– Aged 21-22 inclusive from April 2021

£7.38

£7.70

£8.20

£8.36

£9.18

Aged 18-20 inclusive

£5.90

£6.15

£6.45

£6.56

£6.83

Aged under 18 but above school leaving age

£4.20

£4.35

£4.55

£4.62

£4.81

Apprentices aged under 19

£3.70

£3.90

£4.15

£4.30

£4.81

Apprentices aged 19 and over but in first year of apprenticeship

£3.70

£3.90

£4.15

£4.30

£4.81

Income Tax Rates and Allowances (Note - rates in Scotland are different)

Personal Allowance (PA) *

£11,850

£12,500

£12,500

£12,570

£12,570

Basic Rate Band Up to

£46,350

£50,000

£50,000

£50,270

£50,270

Higher Rate Band Up to

£150,000

£150,000

£150,000

£150,000

£150,000

*The personal allowance is restricted for adjusted net income above £100k by £1 for every £2 of additional income

Earnings above which No PA Available

£123,700

£125,000

£125,000

£125,140

£125,140

Basic Rate Tax (BRT)

20%

20%

20%

20%

20%

Higher Rate Tax (HRT)

40%

40%

40%

40%

40%

Additional Rate Tax (ART)

45%

45%

45%

45%

45%

Trading Allowance - no tax paid on trading income below this level

£1,000

£1,000

£1,000

£1,000

£1,000

Blind Persons Allowance

£2,390

£2,450

£2,500

£2,520

£2,520

Married Couples Allowance
(Born fefore 6th Apr 1935)

Max

£8,695

£8,915

£9,075

£9,125

£9,415

Min

£3,360

£3,450

£3,510

£3,530

£3,640

MCA is reduced by £1 for every £2 of income exceeding

£28,900

£29,600

£30,200

£30,400

£31,400

Transferable Marriage Allowance

£1,190

£1,250

£1,250

£1,260

£1,260

A spouse or civil partner who is not liable to income tax above the basic rate may transfer their Marriage Allowance to their spouse/civil partner provided that the recipient of the transfer is not liable to income tax above the basic rate. Taxpayers have up to 4 years in which to make the election

Child benefit claimants:
From 7/1/2013, the High Income Child Benefit Tax Charge provisions claw back child benefit when a claimant or their partner’s income exceeds £50,000

Other Rates and Allowances

De-Minimis Allowance for Self Employed Income

£1,000

£1,000

£1,000

£1,000

£1,000

Personal Savings Allowance

Basic Rate

£1,000

£1,000

£1,000

£1,000

£1,000

Higher Rate

£500

£500

£500

£500

£500

Additional rate

Nil

Nil

Nil

Nil

Nil

Starting Rate Band for Savings
(Reduced £ for £ on income above PA)

£5,000

£5,000

£5,000

£5,000

£5,000

Tax on savings income is calculated by first of all determining the amount of the SRB available (by reference to the taxpayers other income) and then allowing the Personal Savings Allowance (even if no SRB is available)

Dividends Allowance

£2,000

£2,000

£2,000

£2,000

£2,000

Dividend Tax Rate

Basic Rate

7.5%

7.5%

7.5%

7.5%

8.75%

Higher Rate

32.5%

32.5%

32.5%

32.5%

33.75%

Additional rate

38.1%

38.1%

38.1%

38.1%

39.35%

Pension Contribution Limit

Annual

£40,000

£40,000

£40,000

TBC

TBC

Lifetime

£1,030,000

£1,055,000

£1,073,000

TBC

TBC

ISA Investment Limit

£20,000

£20,000

£20,000

£20,000

£20,000

Annual allowance is reduced by £1 for every £2 of income above £150,000 to a minimum allowance of £10,000

Help to Buy ISA

Only avialable on properties with a pucrhase price of upto £250k (£450k in London)

£200/mth
+ £1000

£200/mth
+ £1000

£200/mth
+ £1000

£200/mth
+ £1000

£200/mth
+ £1000

Rent a Room Relief

£7,500

£7,500

£7,500

£7,500

£7,500

Capital Gains Tax

Capital Gains Tax annual Exempt Amount

£11,700

£12,000

£12,300

£12,300

£12,300

Standard CGT

Residential Property

18%

18%

18%

18%

18%

Other property

10%

10%

10%

10%

10%

Higher Rate CGT

Residential Property

28%

28%

28%

28%

28%

Other property

20%

20%

20%

20%

20%

Business Assets Disposal (Entrepreneurs) Relief

Rate

10%

10%

10%

10%

10%

Lifetime Allowance

£10m

£10m
until 11/3/2020

£1m

£1m

£1m

Inheritance Tax

Nil Band

£325,000

£325,000

£325,000

£325,000

£325,000

Residence Nil Band (Additional)

£125,000

£150,000

£175,000

£175,000

£175,000

IHT Rate

40%

40%

40%

40%

40%

Lifetime gifts charged to IHT if made within 7 years of death – tax rates taper from 40% to 8% depending on no. years before death that the gift is made

Business Tax

Corporation Tax Rate

19%

19%

19%

19%

19%

Annual Investment Allowance

£1,000,000

£1,000,000

£1,000,000

£1,000,000

£1,000,000

First Year Allowances

100%

100%

100%

100%

100%

WDA – Integral features, long life plant and certain cars (Reducing Balance)

8%

6%

6%

6%

6%

WDA – Structures and Buildings (Reducing Balance)

2%

2%

2%

2%

2%

WDA – Other Plant and Machinery (Reducing Balance)

18%

18%

18%

18%

18%

Changes in the rate of Corporation Tax effective from 1st April 2023 were announced in last years Budget which will see the main rate of Corporation Tax rise to 25% for companies with profits above £250k. For businesses with profits of less than £50k, the rate will remain at 19%, whilst for businesses making profits of between £50k and £250k, a system of tapering relief is introduced to smooth the transition in tax rates to the higher rate.

The budget also introduced special capital allowances of 130% which are available for the same kinds of assets that would have qualified for Annual Investment Allowances. These rates are available for assets purchased between 1st April 2021 and 31st March 2023.

VAT

VAT registration threshold

£85,000

£85,000

£85,000

£85,000

£85,000

Standard Rate of VAT

20%

20%

20%

20%

20%

Reduced Rate of VAT

5%

5%

5%

5%

5%

Mileage Allowances

Car/Van

First 10k miles


45p

45p

45p

45p

Over 10k miles


25p

25p

25p

25p

Standard Rate of VAT

First 10k miles


24p

24p

24p

24p

Over 10k miles


24p

24p

24p

24p

Bicycle


20p

20p

20p

20p

Class 1 NIC Thresholds

Lower Earnings Limit (LEL)

Monthly

£512

£520

£520

£520

Annual

£6,144

£6,240

£6,240

£6,240

Primary Threshold (PT)
(Employees start paying NI)

Monthly

£719

£792

£797

£797

Annual

£8,628

£9,500

£9,568

£9,568

Secondary Threshold (ST)
(Employers start paying NI)

Monthly

£719

£792

£797

£797

Annual

£8,628

£8,784

£8,840

£8,840

Upper Earnings Limit (UEL)

Monthly

£4,167

£4,167

£4,189

£4,189

Annual

£50,000

£50,000

£50,270

£50,270

Upper Secondary Threshold (UST)
(Employers of employees under 21 don’t pay NI up to this point)

Monthly

£4,167

£4,167

£4,189

£4,189

Annual

£50,000

£50,000

£50,270

£50,270

Class 1 NIC Rates – EMPLOYERS

Above Secondary Threshold

Employers

13.8%

13.8%

13.8%

13.8%

Rate below Upper Secondary Threshold

Employers

Nil

Nil

Nil

Nil

Class 1A rate on Expenses and Benefits

Employers

13.8%

13.8%

13.8%

13.8%

Employment Allowance

Employers

£3,000

£4,000

£4,000

£4,000

Class 1 NIC Rates – EMPLOYEES

Between PT and UEL

Employees

12%

12%

12%

12%

Above UEL

Employees

2%

2%

2%

2%

Class 2 NIC's

Small Profits Threshold

Annual

£6,365

£6,475

£6,515

£6,515

Rate Payable

Weekly

£3.00

£3.05

£3.05

£3.05

Class 4 NIC's

Lower Profits Limit (LPL)
Self employed start paying Class 4 NIC’s

£8,632

£9,500

£9,568

£9,568

Upper Profits Limit (UPL)
Self employed pay a lower rate

£50,000

£50,000

£50,270

£50,270

Rate between LPL and UPL

9%

9%

9%

9%

Rate above UPL

2%

2%

2%

2%

National Minimum Wage Rates

Aged 25 and Over to March 2021
- Aged 23 and above from April 2021

£8.21

£8.72

£8.91

£8.91

Aged 21-24 inclusive to March 2021
– Aged 21-22 inclusive from April 2021

£7.70

£8.20

£8.36

£8.36

Aged 18-20 inclusive

£6.15

£6.45

£6.56

£6.56

Aged under 18 but above school leaving age

£4.35

£4.55

£4.62

£4.62

Apprentices aged under 19

£3.90

£4.15

£4.30

£4.30

Apprentices aged 19 and over but in first year of apprenticeship

£3.90

£4.15

£4.30

£4.30

Income Tax Rates and Allowances

Personal Allowance (PA) *

£12,500

£12,500

£12,570

£12,570

Basic Rate Band Up to

£50,000

£50,000

£50,270

£50,270

Higher Rate Band Up to

£150,000

£150,000

£150,000

£150,000

*The personal allowance is restricted for adjusted net income above £100k by £1 for every £2 of additional income

Earnings above which No PA Available

£125,000

£125,000

£125,140

£125,140

Basic Rate Tax (BRT)

20%

20%

20%

20%

Higher Rate Tax (HRT)

40%

40%

40%

40%

Additional Rate Tax (ART)

45%

45%

45%

45%

Transferable Marriage Allowance

£1,250

£1,250

£1,250

£1,250

Blind Persons Allowance

£2,450

£2,500

£2,520

£2,520

Married Couples Allowance
(Born fefore 6th Apr 1935)

Max

£8,915

£9,075

£9,125

£9,125

Min

£3,450

£3,510

£3,530

£3,530

MCA is reduced by £1 for every £2 of income exceeding

£29,600

£30,200

£30,400

£30,400

Transferable Marriage Allowance

£1,250

£1,250

£1,250

£1,250

A spouse or civil partner who is not liable to income tax above the basic rate may transfer their Marriage Allowance to their spouse/civil partner provided that the recipient of the transfer is not liable to income tax above the basic rate. Taxpayers have up to 4 years in which to make the election

Child benefit claimants:
From 7/1/2013, the High Income Child Benefit Tax Charge provisions claw back child benefit when a claimant or their partner’s income exceeds £50,000

Other Rates and Allowances

De-Minimis Allowance for Self Employed Income

£1,000

£1,000

£1,000

£1,000

Personal Savings Allowance

Basic Rate

£1,000

£1,000

£1,000

£1,000

Higher Rate

£500

£500

£500

£500

Additional rate

Nil

Nil

Nil

Nil

Starting Rate Band for Savings
(Reduced £ for £ on income above PA)

£5,000

£5,000

£5,000

£5,000

Tax on savings income is calculated by first of all determining the amount of the SRB available (by reference to the taxpayers other income) and then allowing the Personal Savings Allowance (even if no SRB is available)

Dividends Allowance

£2,000

£2,000

£2,000

£2,000

Dividend Tax Rate

Basic Rate

7.5%

7.5%

7.5%

7.5%

Higher Rate

32.5%

32.5%

32.5%

32.5%

Additional rate

38.1%

38.1%

38.1%

38.1%

Pension Contribution Limit

Annual

£40,000

£40,000

TBC

TBC

Lifetime

£1,055,000

£1,073,000

TBC

TBC

ISA Investment Limit

£20,000

£20,000

£20,000

£20,000

Annual allowance is reduced by £1 for every £2 of income above £150,000 to a minimum allowance of £10,000

Help to Buy ISA

£200/mth
+ £1000

£200/mth
+ £1000

N/A

N/A

Rent a Room Relief

£7,500

£7,500

TBC

TBC

Capital Gains Tax

Capital Gains Tax annual Exempt Amount

£12,000

£12,300

TBC

TBC

Standard CGT

Residential Property

18%

18%

TBC

TBC

Other property

10%

10%

TBC

TBC

Higher Rate CGT

Residential Property

28%

28%

TBC

TBC

Other property

20%

20%

TBC

TBC

Business Assets Disposal (Entrepreneurs) Relief

Rate

10%

10%

TBC

TBC

Lifetime Allowance

£10m
until 11/3/2020

£1m

£1m

£1m

Inheritance Tax

Nil Band

£325,000

£325,000

£325,000

£325,000

Residence Nil Band (Additional)

£150,000

£175,000

£175,000

£175,000

IHT Rate

40%

40%

40%

40%

Lifetime gifts charged to IHT if made within 7 years of death – tax rates taper from 40% to 8% depending on no. years before death that the gift is made

Business Tax

Corporation Tax Rate

19%

19%

19%

19%

Annual Investment Allowance

£1,000,000

£1,000,000

£1,000,000

£1,000,000

First Year Allowances

100%

100%

100%

100%

WDA – Integral features, long life plant and certain cars (Reducing Balance)

6%

6%

6%

6%

WDA – Structures and Buildings (Reducing Balance)

2%

2%

2%

2%

WDA – Other Plant and Machinery (Reducing Balance)

18%

18%

18%

18%

Changes in the rate of Corporation Tax effective from 1st April 2023 were recently announced in the Budget which will see the main rate of Corporation Tax rise to 25% for companies with profits above £250k. For businesses with profits of less than £50k, the rate will remain at 19%, whilst for businesses making profits of between £50k and £250k, a system of tapering relief is introduced to smooth the transition in tax rates to the higher rate.

The budget also introduced special capital allowances of 130% which are available for the same kinds of assets that would have qualified for Annual Investment Allowances

VAT

VAT registration threshold

£85,000

£85,000

£85,000

£85,000

Standard Rate of VAT

20%

20%

20%

20%

Reduced Rate of VAT

5%

5%

5%

5%

Mileage Allowances

Car/Van

First 10k miles

45p

45p

45p

45p

Over 10k miles

25p

25p

25p

25p

Standard Rate of VAT

First 10k miles

24p

24p

24p

24p

Over 10k miles

24p

24p

24p

24p

Bicycle

20p

20p

20p

20p