Tax Rates and Tables

  2018/
2019
2019/
2020
2020/
2021
2021/
2022
Class 1 NIC Thresholds
Lower Earnings Limit (LEL)Monthly£503£512£520£520
Annual£6,036£6,144£6,240£6,240
Primary Threshold (PT)
(Employees start paying NI)
Monthly£702£719£792£797
Annual£8,424£8,628£9,500£9,568
Secondary Threshold (ST)
(Employers start paying NI)
Monthly£702£719£732£737
Annual£8,424£8,628£8,784£8,840
Upper Earnings Limit (UEL)Monthly£3,863£4,167£4,167£4,189
Annual£46,356£50,000£50,000£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
Annual£46,356£50,000£50,000£50,270
Class 1 NIC Rates – EMPLOYERS
Above Secondary ThresholdEmployers13.8%13.8%13.8%13.8%
Rate below Upper Secondary ThresholdEmployersNilNilNilNil
Class 1A rate on Expenses and BenefitsEmployers13.8%13.8%13.8%13.8%
Employment AllowanceEmployers£3,000£3,000£4,000£4,000
Class 1 NIC Rates – EMPLOYEES
Between PT and UELEmployees12%12%12%12%
Above UELEmployees2%2%2%2%
Class 2 NIC’s
Small Profits ThresholdAnnual£6,205£6,365£6,475£6,515
Rate PayableWeekly£2.95£3.00£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
Upper Profits Limit (UPL)
Self employed pay a lower rate
£46,350£50,000£50,000£50,270
Rate between LPL and UPL9%9%9%9%
Rate above UPL2%2%2%2%
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
Aged 21-24 inclusive to March 2021 – Aged 21-22 inclusive from April 2021£7.38£7.70£8.20£8.36
Aged 18-20 inclusive£5.90£6.15£6.45£6.56
Aged under 18 but above school leaving age£4.20£4.35£4.55£4.62
Apprentices aged under 19£3.70£3.90£4.15£4.30
Apprentices aged 19 and over but in first year of apprenticeship£3.70£3.90£4.15£4.30
Income Tax Rates and Allowances
Personal Allowance (PA) *£11,850£12,500£12,500£12,570
Basic Rate Band Up to£46,350£50,000£50,000£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 Available123,700125,000125,000125,140
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£1,190£1,250£1,250£1,250
Blind Persons Allowance£2,390£2,450£2,500£2,520
Married Couples Allowance (Born fefore 6th Apr 1935)Max£8,695£8,915£9,075£9,125
Min£3,360£3,450£3,510£3,530
MCA is reduced by £1 for every £2 of income exceeding£28,900£29,600£30,200£30,400
Transferable Marriage Allowance£1,190£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 upto 4 years in which to make the election
Chilld benefit claimantsFrom 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 AllowanceBasic Rate£1,000£1,000£1,000£1,000
Higher Rate£500£500£500£500
Additional rateNilNilNilNil
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 rateBasic Rate7.5%7.5%7.5%7.5%
Higher Rate32.5%32.5%32.5%32.5%
Additional rate38.1%38.1%38.1%38.1%
Pension Contribution LimitAnnual£40,000£40,000£40,000To be confirmed
Lifetime£1,030,000£1,055,000£1,073,000To be confirmed
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/mnth
+ £1000
£200/mnth
+ £1000
£200/mnth
+ £1000
N/A
Rent a Room Relief£7,500£7,500£7,500TBC
Capital Gains Tax
Capital Gains Tax annual Exempt Amount£11,700£12,000£12,300TBC
Standard CGTResidential Property18%18%18%TBC
Other property10%10%10%TBC
Higher Rate CGTResidential Property28%28%28%TBC
Other property20%20%20%TBC
Business Assets Disposal (Entrepreneurs) ReliefRate10%10%10%TBC
Lifetime Allowance£10m£10m until 11/3/2020£1m£1m
Inheritance Tax
Nil Band£325,000£325,000£325,000£325,000
Residence Nil Band (Additional)£125,000£150,000£175,000£175,000
IHT Rate40%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 Rate19%19%19%19%
Annual Investment Allowance£1,000,000£1,000,000£1,000,000£1,000,000
First Year Allowances100%100%100%100%
WDA – Integral features, long life plant and certain cars (Reducing Balance)8%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 VAT20%20%20%20%
Reduced Rate of VAT5%5%5%5%
Mileage Allowances
Car/VanFirst 10k miles45p45p45p
Over 10k miles25p25p25p
MotorcycleFirst 10k miles24p24p24p
Over 10k miles24p24p24p
Bicycle20p20p20p

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