Personal Tax

Income tax2020/212019/202018/192017/18
Personal Allowance12,50012,50011,85011,500
Transferable marriage allowance1,2501,2501,1851,150
Savings rate band 5,000 5,0005,0005,000
Savings rate (from 6 April 2016 0% PSA*)0%0%0%0%
Basic rate band (20%)
37,50037,50034,50033,500
Start to lose child benefit (from 7/1/13) 50,000 50,00050,00050,000
Lose all child benefit above 60,000 60,00060,00060,000
Lose personal allowance at 100,000 100,000100,000100,000
Additional rate on earnings over (45%) 150,000 150,000150,000150,000
Rent a room limit 7,500 7,5007,500 7,500
Trading allowance1,0001,0001,0001,000
Property allowance1,0001,0001,0001,000

Salary and Dividends

Salary and dividends2020/212019/202018/192017/18
Employers NI threshold (per month)732719702680
Optimum annual salary [A]8,7848,6288,4248,160
Personal allowance + basic rate50,00050,00046,35045,000
Remaining after deducting [A]41,21641,37237,92636,840
Net dividends (within basic rate)41,21641,37237,92636,840
Dividend Tax Allowance2,0002,0002,0005,000
Dividend tax rate basic rate taxpayers7.5%7.5%7.5%7.5%
Dividend tax rate higher rate taxpayers32.5%32.5%32.5%32.5%
Dividend tax rate additional rate taxpayers38.1%38.1%38.1%38.1%

National Insurance

National Insurance2020/212019/202018/192017/18
Employees NI rate12%12%12%12%
Employers NI rate13.8%13.8%13.8%13.8%
Lower earnings limit6,2406,1366,0325,876
Upper earnings limit50,00050,00046,38445,000
Primary threshold9,5008,6328,4248,164
Secondary threshold8,7888,6328,4248,164
Self employed NI rate9%9%9%9%
Self employed NI lower limit9,5008,6328,4248,164
Self employed NI upper limit (2% NI above this)50,000 50,00046,35045,000
Small earnings exemption6,4756,3656,2056,025
Class 2 (per week)3.053.002.952.85
Student loan threshold (pre-2012) Plan 119,39018,93518,33017,775
Student loan threshold (post-2012, England and Wales only) Plan 226,57525,72525,00021,000
Student loan rate (pre-2012)9%9%9%9%
Employment Allowance (deduction from Employers NI)4,000 3,0003,0003,000

Capital Gains Tax

Capital Gains Tax2020/212019/202018/192017/18
Capital gains tax annual exemption12,30012,00011,70011,300
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

VAT thresholds:2020/212019/202018/192017/18
Registration85,00085,00085,00085,000
Deregistration83,00083,00083,00083,000
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 rates2020/212019/202018/192017/18
Main rate (17% from 1/4/20)19%19%19%19%
Capital Allowances2020/212018/192018/192017/18
AIA limit (£200,000 from 1 January 2021)1,000,0001,000,000200,000200,000
Standard main pool rate18%18%18%18%
Special rate (integral features and long term)6%8%8%8%
Small pool write off1,0001,0001,0001,000
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