Key Tax Rates

 

 

Rates & Allowances          
  2016/2017 2017/2018 2018/2019 2019/2020 2020/2021
Income Tax          
Personal Allowances          
Annual allowance 11,000 11,500 11,850 12,500 12,500
Age-related income limit 27,700 28,000 28,900 29,600 29,600

 *Age allowance reduced by £1 for every £2 over the above income limit

            
Married couples - age 75+ 8,355 8,445 8,695 8,915 8,915
Transferable marriage allowance 1,100 1,150 1,190 1,250 1,250
Income limit for personal allowance 100,000 100,000 100,000 100,000 100,000
Income Tax Bands          
20% Basic rate up to 32,000 33,500 34,500 37,500 37,500
40% higher rate up to 32,001 - 150,000

33,501 -

150,000

 34,501 - 150,000 37,501 - 150,000 37,501 - 150,000
Income limit on married couples allowance

 

27,700

 

 28,000 28,900 29,600

29,600
           
Dividends          
Basic rate / over  ( 5,000 / 2,000 ) ( 7.5% ) ( 7.5% ) ( 7.5% ) ( 7.5% ) ( 7.5% )
Higher rate 32.5% 32.5% 32.5% 32.5% 32.5%
Tax free dividend 5,000 5,000 2,000 2,000 2,000
           
National Insurance          
Class 1 - Employee          
No NIC's on the first £156 pw £157 pw £162 pw £166 pw £183 pw
Percentage payable 12% 12% 12% 12% 12%
Upper earnings limit £827 pw £866 pw £892 pw £962 pw £962 pw
Percentage payable 2% 2% 2% 2% 2%
           
Class 2 - Self Employed          
Flat rate per week £2.80 £2.85 £2.95 £3.00 £3.05
Small earnings exemption

5,965

 6,025 6,205 6,365 6,475
           
Class 3 - Voluntary          
Flat rate per week £14.10 £14.25 £14.65 £15.00 £15.30
           
Class 4 - Self Employed          
Lower Limit 8,060 8,164 8,424 8,632 9,500
Percentage payable 9% 9% 9% 9% 9%
Upper Profits Limit 43,000 45,000 46,350 50,000 50,000
Percentage payable 2% 2% 2% 2% 2%
           
Capital Gains Tax          
Annual exempt amount 11,100 11,300 11,700 12,000 12,300
Basic rate taxed at 18% 18% 18% 18% 18%
Higher rate taxed at 28% 28% 28% 28% 28%
Entrepreneurs Relief 10% 10% 10% 10% 10%
           
Corporation Tax          
Small companies rate 20% 19% 19% 19% 19%
           
Capital Allowances          
Written down allowance 8 / 18% 8 / 18% 8 / 18% 6 / 18% 6 / 18%
Annual investment allow. 100% 100% 100% 100% 100%
           
Mileage Allowances          
Up to 10,000 miles 45p 45p 45p 45p 45p
Over 10,000 miles 25p 25p 25p 25p 25p