Tax data 2020/21

Income Tax

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%

Income Tax Reliefs

	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

Individual Savings Accounts

	2020/21	2019/20
Overall investment limit	£20,000	£20,000
Junior account investment limit	£9,000	£4,368

Car, Van and Fuel Benefits

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

National Insurance

2020/21 Class 1 (employed) rates

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

Stamp Duty Land Tax

Land and buildings in England and N. Ireland

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.

Capital Gains Tax

	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.

Entrepreneurs’ Relief

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.

Inheritance Tax

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.

Corporation Tax

	Rate %		Rate %
Year to 31.3.21	19	Year to 31.3.21	19

Different rates apply for ring-fenced (broadly oil industry) profit.

Capital Allowances

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%

Pensions

	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

Value Added Tax

	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

Selected Rates

	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

National Living Wage and National Minimum Wage

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.

Key Dates and Deadlines

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:

31 May 2020 – P60s to employees
6 July 2020 – P11D and P11D(b) and copies to employees 31 October 2020 – paper Self Assessment Tax Return (SATR)
30 December 2020 – SATR Online where outstanding tax (subject to cap) to be included in 2021/22 PAYE code
31 January 2021 – SATR Online