Rates and bands (other than savings and dividend income)
2020/21 | 2019/20 | ||
---|---|---|---|
Band £ | Rate % | Band £ | Rate % |
0 – 37,500 | 20 | 0 – 37,500 | 20 |
37,501 – 150,000 | 40 | 37,501 – 150,000 | 40 |
Over 150,000 | 45 | Over 150,000 | 45 |
Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.
Savings income | 2020/21 and 2019/20 |
---|---|
Savings allowance basic rate | £1,000 |
Savings allowance higher rate | £500 |
A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.
Dividend income | 2020/21 and 2019/20 |
---|---|
Dividend allowance | £2,000 |
Dividend ordinary rate | 7.5% |
Dividend upper rate | 32.5% |
Dividend additional rate | 38.1% |
2020/21 | 2019/20 | |
---|---|---|
Personal allowance | £12,500 | £12,500 |
Personal allowance income limit | £100,000 | £100,000 |
Marriage allowance | £1,250 | £1,250 |
Married couple’s allowance | £9,075 | £8,915 |
– minimum amount | £3,510 | £3,450 |
– income limit | £30,200 | £29,600 |
Blind person’s allowance | £2,500 | £2,450 |
2020/21 | 2019/20 | |
---|---|---|
Overall investment limit | £20,000 | £20,000 |
Junior account investment limit | £9,000 | £4,368 |
2020/21 | Cars registered pre 6.4.20 | Cars registered after 5.4.20 |
---|---|---|
CO2 emissions g/km | % of list price taxed | % of list price taxed |
0 | 0 | 0 |
1-50 | ||
Electric range – 130 or more | 2 | 0 |
70 – 129 | 5 | 3 |
40 – 69 | 8 | 6 |
30 – 39 | 12 | 10 |
under 30 | 14 | 12 |
51-54 | 15 | 13 |
For every extra 5 | +1 | +1 |
160 and above | 37 | n/a |
170 and above | n/a | 37 |
For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.
2020/21 | |
---|---|
Car fuel benefit | £24,500 |
Van benefit | £3,490 |
Van fuel benefit | £666 |
Employee Earnings per week | % | Employer Earnings per week | % |
---|---|---|---|
Up to £183 | Nil | Up to £169 | Nil |
£183.01 – £962 | 12 | Over £169 | 13.8 |
Over £962 | 2 |
Entitlement to contribution-based benefits for employees retained for earnings between £120 and £183 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 per week.
Class 1A (employers) | 13.8% on employee taxable benefits |
---|---|
Class 1B (employers) | 13.8% on PAYE Settlement Agreements |
Class 2 (self-employed) | flat rate per week £3.05 small profits threshold £6,475 per annum |
Class 3 (voluntary) | flat rate per week £15.30 |
Class 4 (self-employed) | 9% on profits between £9,500 and £50,000 plus 2% on profits over £50,000 |
Residential rates may be increased by 3% where further residential properties are acquired.
Residential (£) | Rate % | Non-residential (£) | Rate % |
---|---|---|---|
0 – 500,000 | 0 | 0 – 150,000 | 0 |
500,001 – 925,000 | 5 | 150,001 – 250,000 | 2 |
925,001 – 1,500,000 | 10 | Over 250,000 | 5 |
Over 1,500,000 | 12 |
Residential rates apply from 8 July 2020 to 31 March 2021.
2020/21 | 2019/20 | |
---|---|---|
Individuals | ||
Exemption | £12,300 | £12,000 |
Standard rate | 10% | 10% |
Higher/additional rate | 20% | 20% |
Trusts | ||
Exemption | £6,150 | £6,000 |
Rate | 20% | 20% |
Higher/additional rate | 20% | 20% |
Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest.
The first £10m of qualifying gains are charged at 10%. This is reduced to £1m for disposals on or after 11 March 2020 subject to certain transitional rules.
Death rate | Lifetime rate | Chargeable transfers 2020/21 and 2019/20 |
---|---|---|
Nil | Nil | 0 – £325,000 (nil rate band) |
40% | 20% | Over £325,000 |
A further nil rate band of £175,000 (£150,000 for 2019/20) may be available in relation to current or former residences.
Rate % | Rate % | ||
---|---|---|---|
Year to 31.3.21 | 19 | Year to 31.3.21 | 19 |
Different rates apply for ring-fenced (broadly oil industry) profit.
First Year Allowance (FYA) on certain plant, machinery and cars up to 50g/km | 100% |
Annual Investment Allowance (AIA) £1,000,000 (£200,000 from 1 January 2021) Excludes cars and expenditure already qualifying for FYA |
|
Writing Down Allowance Expenditure not qualifying for AIA or FYA: |
|
Long-life assets, integral features of buildings, cars over 110g/km | 6% |
Other plant and machinery | 18% |
Structures and Buildings Allowance From April 2020 |
3% |
2020/21 | 2019/20 | |
---|---|---|
Lifetime Allowance limit | £1,073,100 | £1,055,100 |
Annual Allowance limit | £40,000 | £40,000 |
Money Purchase Annual Allowance | £4,000 | £4,000 |
From 1.4.20 | From 1.4.19 | |
---|---|---|
Standard rate | 20% | 20% |
Reduced rate | 5% | 5% |
Annual Registration Limit | £85,000 | £85,000 |
Annual Deregistration Limit | £83,000 | £83,000 |
Disclaimer: Rates are for guidance only. No responsibility for loss occasioned by any person acting/ refraining from action as a result of this information can be accepted by the authors or firm
2020/21 | 2019/20 | |
---|---|---|
Weekly benefit | ||
Basic State Pension | £134.25 | £129.20 |
New State Pension | £175.20 | £168.60 |
Statutory pay standard rates – average weekly earnings £120 (£118) or over | ||
Sick Pay | £95.85 | £94.25 |
Maternity/Adoption Pay | £151.20 | £129.20 |
Shared Parental Pay | £151.20 | £129.20 |
Paternity Pay | £151.20 | £129.20 |
Age | NLW | 21-24 | 18-20 | 16-17 | Apprentices |
From 1 April 2020 | £8.72 | £8.20 | £6.45 | £4.55 | £4.15 |
Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 25 and over.
Payment Dates | 2020/21 | 2019/20 | |
---|---|---|---|
Income Tax and Class 4 NIC | |||
– 1st payment on account | 31 January | 2021 | 2020 |
– 2nd payment on account | 31 July | 2021 | 2021 |
– Balancing payment | 31 January | 2022 | 2020 |
Class 2 NIC | 31 January | 2022 | 2021 |
Capital Gains Tax | 31 January | 2022 | 2021 |
Class 1A NIC | 19 July | 2021 | 2020 |
Corporation Tax – 9 months and one day after the end of accounting period (quarterly instalments if large company)
2019/20 Returns Filing Deadlines: