Personal Allowances & Rates

 2018/192019/20
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)

 2018/192019/20
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 nameTax Rate2018/192019/20
Starter rate19%£11,850 – £13,850£12,500* – £14,549
Basic rate20%£13,851 – £24,000£14,550 – £24,944
Intermediate21%£24,001 – £44,273£24,945 – £43,430
Higher rate41%£44,274 – £150,000£43,431 – £150,000
Additional rate46%Over £150,000Over £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

2018/192019/20
WeeklyAnnuallyWeeklyAnnually
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

2018/192019/20
WeeklyAnnuallyWeeklyAnnually
Secondary Threshold – Salary payments above this threshold will incur Employer NICs at 13.8%.£162£8,424£166£8,632

 

Self Employed NI Contributions

 2018/192019/20
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 £46,350Over £50,000

 

Capital Gains Tax

 2018/192019/20
Annual exemption from capital gains£11,700£12,000
As a basic ratetaxpayerGains from other residential property 18%18%
Gains from other chargeable assets 10%10%
As a higher ratetaxpayerGains from other residential property 28%28%
Gains from other chargeable assets20%20%
Entrepreneurs’ Relief (the lifetime limit on relief is £10 million)10%10%

 

Company Tax Rates

 2018/192019/20
Corporation Tax rate19%19%
VAT Registration£85,000£85,000

 

Mileage Rates

 First 10,000Over 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 year2.5% nominal interest on the whole amount plusClass 1A National Insurance contributions (13.8%), and may need to be reported on your P11D