Personal Tax

Income tax2023/242022/232021/222020/21
Personal Allowance12,57012,57012,57012,500
Transferable marriage allowanceTBC1,2571,2571,250
Savings rate band5,0005,0005,000 5,000
Savings rate (from 6 April 2016 0% PSA*)0%0%0%0%
Basic rate band (20%)
Start to lose child benefit (from 7/1/13)50,00050,00050,000 50,000
Lose all child benefit above60,00060,00060,000 60,000
Lose personal allowance at100,000100,000100,000 100,000
Additional rate on earnings over (45%)125,140
150,000150,000 150,000
Rent a room limit 7,500 7,500 7,500 7,500
Trading allowance1,0001,0001,0001,000
Property allowance1,0001,0001,0001,000

Salary and Dividends

Salary and dividends2023/242022/232021/222020/21
Employers NI threshold (per month)758758736732
Optimum annual salary [A]11,90411,9048,8328,784
Personal allowance + basic rate50,27050,27050,27050,000
Remaining after deducting [A]38,36638,366
Net dividends (within basic rate)38,36638,36641,43841,216
Dividend Tax Allowance1,0002,0002,0002,000
Dividend tax rate basic rate taxpayers8.75%8.75%7.5%7.5%
Dividend tax rate higher rate taxpayers33.75%33.75%32.5%32.5%
Dividend tax rate additional rate taxpayers39.35%39.35%38.1%38.1%

National Insurance

National Insurance2023/242022/232021/222020/21
Employees NI rate12%12% (13.25% between July and October)12%12%
Employers NI rate13.8%13.8% (15.05% between July and October)13.8%13.8%
Lower earnings limit6,3966,3966,2406,240
Upper earnings limit50,27050,27050,27050,000
Primary threshold12,57012,5709,5689,500
Secondary threshold9,0969,0968,8408,788
Self employed NI rate9%9%9%9%
Self employed NI lower limit12,57012,5709,5689,500
Self employed NI upper limit (2% NI above this)50,27050,27050,27050,000
Small earnings exemption6,7256,7256,5156,475
Class 2 (per week)3.453.153.053.05
Student loan threshold (pre-2012) Plan 1TBC20,18419,88419,390
Student loan threshold (post-2012, England and Wales only) Plan 2TBC27,28827,28826,575
Student loan rate (pre-2012)9%9%9%9%
Employment Allowance (deduction from Employers NI)5,0005,0004,0004,000

Capital Gains Tax

Capital Gains Tax2023/242022/232021/222020/21
Capital gains tax annual exemption6,00012,30012,30012,300
Capital gains tax rates (Residential property)18%/28%18%/28%18%/28%18%/28%
Capital gains tax rates (Other)10%/20%10%/20%10%/20%10%/20%


VAT thresholds:2023/242022/232021/222020/21
Flat rate scheme: Joining (excluding VAT) 150,000 150,000 150,000 150,000
Flat rate scheme: Leaving (including VAT) 230,000 230,000 230,000 230,000
Cash accounting: Joining 1,350,000 1,350,000 1,350,000 1,350,000
Cash accounting: Leaving 1,600,000 1,600,000 1,600,000 1,600,000
VAT rate: 20%20%20%20%

Company Tax

Corporation tax rates2023/242022/232021/222020/21
Main rate (Rate to increase from 1 April 2023 up to 25% if profits over £250,000)25% (Over £250k profit)
25% minus marginal relief (Between £50k and £250k profit)
19% (Up to £50k profit)
Capital Allowances2023/242022/232021/222020/21
AIA limit1,000,0001,000,0001,000,0001,000,000
Standard main pool rate18%18%18%18%
Special rate (integral features and long term)8%8%8%6%
Small pool write off1,0001,0001,0001,000