Personal Allowances & Rates

  2018/19 2019/20
Personal Allowance £11,850 £12,500
 Income limit for Personal Allowance –The level of earnings at which the Personal Allowance reduces. For each £2 in earnings above £100,000, you lose £1 of Personal Allowance.

In 2019/20, you don’t receive any personal allowance when you earn over £125,000 (2018/19 equivalent is £123,700

 £100,000 £100,000

Income Tax Rates (England & Wales)

  2018/19 2019/20
Basic rate – The lowest level of income tax paid above the personal allowance.

 

 20% on earnings between £11851 and £46,3501 (you pay tax on £34,500)  

20% on earnings between £12,501 and £50,0001 (you pay tax on £37,500)

 
Higher rate – The middle tier of income tax.  

40% on earnings between £46,351 and £150,000

 

 40% on earnings between £50,001 and £150,000
Additional rate – The top rate of income tax for high earners.  

45% on earnings above £150,000

  

45% on earnings above £150,000

 

Scottish Income Tax Rates & Thresholds

    Bands and Thresholds*
Band name Tax Rate 2018/19 2019/20
Starter rate 19% £11,850 – £13,850 £12,500* – £14,549
Basic rate 20% £13,851 – £24,000 £14,550 – £24,944
Intermediate 21% £24,001 – £44,273 £24,945 – £43,430
Higher rate 41% £44,274 – £150,000 £43,431 – £150,000
Additional rate 46% Over £150,000 Over £150,000

 

Dividend tax rates

There is no change to dividend tax rates in 2019/20:

  • The tax-free dividend allowance is £2,000
  • Basic-rate taxpayers pay 7.5% on dividends
  • Higher-rate taxpayers pay 32.5% on dividends
  • Additional-rate taxpayers pay 38.1% on dividends.

Employee National Insurance contributions

2018/19 2019/20
Weekly Annually Weekly Annually
Lower Earnings Limit – Earnings below this limit will incur no NICs £116 £6,032 £118 £6,136
Primary Threshold – Earnings below this limit will incur no NICs £162 £8,424 £166 £8,632
Upper Earnings Limit – Earnings above the Primary Threshold and below the Upper Earnings Limit will be taxed at 12%. £892 £46,350 £962 £50,000
Any earnings above the Upper Earnings Limit are taxed at 2%

Employer National Insurance contributions

2018/19 2019/20
Weekly Annually Weekly Annually
Secondary Threshold – Salary payments above this threshold will incur Employer NICs at 13.8%. £162 £8,424 £166 £8,632

 

Self Employed NI Contributions

  2018/19 2019/20
Small profits threshold – Earnings below this threshold incur no NICs. £6,205 £6,365
Class 2 NICs – for those earning above the Small profits threshold £2.95 per week £3.00 per week
Lower Profits Limit – Earnings up to this limit incur only Class 2 NICs. Over this limit incurs Class 4 NICs. £8,424 £8,632
Upper Profits Limit – Earnings up to this limit incur:

·       Class 2 NICs

·       Class 4 NICs at 9% of the profit between the Lower Profits Limit and Upper Profits Limit.

 £46,350 £50,000
Earnings above the Upper Profits Limit

Any earnings above this limit incur:

·       Class 2 NICs

·       Class 4 NICs at 9% of the profit between the Lower Profits Limit and Upper Profits Limit

·       Class 4 NICs at 2% of the profit above the Upper Profits Limit.

 Over £46,350 Over £50,000

 

Capital Gains Tax

  2018/19 2019/20
Annual exemption from capital gains £11,700 £12,000
As a basic ratetaxpayer Gains from other residential property  18% 18%
Gains from other chargeable assets  10% 10%
As a higher ratetaxpayer Gains from other residential property  28% 28%
Gains from other chargeable assets 20% 20%
Entrepreneurs’ Relief (the lifetime limit on relief is £10 million) 10% 10%

 

Company Tax Rates

  2018/19 2019/20
Corporation Tax rate 19% 19%
VAT Registration £85,000 £85,000

 

Mileage Rates

  First 10,000 Over 10,000
Car / van £0.45 £0.25
Motorcycle £0.24 £0.24
Bicycle £0.20 £0.20

 

Directors Loans

  2018/19 & 2019/20
If loaned amount exceeds £10,000 at any point during the year 2.5% nominal interest on the whole amount plusClass 1A National Insurance contributions (13.8%), and may need to be reported on your P11D