Tax Tables


Band 2021 – 22 2022 – 23
Taxable Income Rate % Dividend Rate % Taxable Income Rate % Dividend Rate %
Personal Allowance £12,570 0% 0% £12,570 0% 0%
Basic rate £37,700 20.0% 7.5% £37,700 20.0% 8.75%
Higher rate £37,701 to £150,000 40.0% 32.5% £37,701 to £150,000 40.0% 33.75%
Additional rate Over £150,000 45.0% 38.1% Over £150,000 45.0% 39.35%
Personal Savings Allowance (PSA)
Basic rate taxpayer £1,000 £1,000
Higher rate taxpayer £500 £500
Allowances 2021-22 2022-23
Dividend Allowance (DA) £2,000 £2,000
Personal Allowance (PA) (A) £12,570 £12,570
Marriage Allowance (B) £1,260 £1,260
Blind Person’s Allowance £2,520 £2,600
Rent a room relief (C) £7,500 £7,500
Trading Income (C) £1,000 £1,000
Property Income (C) £1,000 £1,000
(A) PA is withdrawn at £1 for every £2 by which ‘adjusted income’ exceeds £100,000. There is no allowance given above £125,140.
(B) The part of the PA that is transferable to a spouse or civil partner who is not a higher or additional rate taxpayer.
(C) If gross income exceeds this, the limit may be deducted instead of actual expenses.
BRB and additional rate threshold are increased by personal pension contributions (up to permitted limit) and Gift Aid donations.
 
General income (salary, pensions, business profits, rent) usually uses personal allowance, basic rate and higher rate bands before savings income (mainly interest).
To the extent that savings income falls in the first £5,000 of the basic rate band, it is taxed at nil rather than 20%.
The PSA taxes interest at nil, where it would otherwise be taxable at 20% or 40%. Dividends are normally taxed as the ‘top slice’ of income. The DA taxes the first £2,000 of dividend income at nil, rather than the rate that would otherwise apply.
Class 1 (Employees) Employee Employer
Main NIC rate 13.25% 15.05%
No NIC on first £190pw £175pw
Main rate charged up to (A) £967pw no limit
2% rate on earnings above £967pw N/A
Employment allowance per business (B) N/A £4,000
(A) Nil rate of employer NIC on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment.
(B) Some businesses do not qualify, including certain sole director companies and employers who have an employer’s Class 1 NIC liability of £100,000 or more for 2021/22.
Employer contributions (at 15.05%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).
 
Class 2 (Self-employed)
Flat rate per week £3.15
Small profits threshold £6,725
 
Class 3 (Voluntary)
Class 3: Flat rate per week £15.85
 
Class 4 (Self-employed)
On profits £9,880 – £50,270 10.25%
On profits over £50,270 3.25%
Details 2021-22 2022-23
Annual exempt amount
Individuals, estates, etc 12,300 12,300
Trusts generally 6,150 6,150
Tax rate
Individual (to basic rate limit) 10% (A) 10% (A)
Individual (above basic rate limit) 20% (A) 20% (A)
Trusts, estates 20% (A) 20% (A)
Business Asset Disposal Relief (BADR) 10% (B) 10% (B)
Investors’ Relief (IR) 10% (C) 10% (C)
(A) Individuals are taxed at 18%/28% on gains on residential property and receipts of carried interest. Trusts and estates are taxed at 28% in these circumstances.
(B) BADR is available on qualifying gains of up to £1m.
(C) Shares in an unquoted trading company may qualify on lifetime gains up to £10m.
Year to 31-3-2022 31-3-2023
Corporation Tax rate 19.00% 19.00%
Research and development relief
31-3-2022 31-3-2023
SME enhanced expenditure deduction scheme (1) 130% 130%
Large company R&D Expenditure Credit (RDEC) scheme (2) 13% 13%
(1) Additional deduction for qualifying R&D.
(2) Taxable expenditure credit for qualifying R&D. SMEs that make losses can surrender the deduction to HMRC in exchange for a payment of 14.5% of the loss (capped at £20,000 plus 3 x PAYE & NIC for periods beginning from 1.4.21).
Details Current Rate
Standard rate (1/6 of VAT-inclusive price) 20%
Tourism and hospitality sector reduced rate – from 1.10.21-31.3.22 12.5%
Taxable Turnover Limits
Registration level - Taxable turnover £85,000 per annum
Deregistration level - Taxable turnover £83,000 per annum
Flat Rate Scheme (FRS)
Annual taxable turnover to enter scheme Up to £150,000
Must leave scheme if annual gross turnover Exceeds £230,000
If using FRS, the VAT paid by the business is a fixed percentage (based on business category) of ‘FRS turnover’ rather than the net of output tax over input tax. Input tax is usually not recoverable.
Cash accounting and Annual accounting schemes
Annual taxable turnover to enter scheme Up to £1.35m
Must leave scheme if annual taxable turnover Exceeds £1.60m
State pension (per week) 2021 – 22 2022 – 23
Old state pension £137.60 £141.85
New state pension * £179.60 £185.15
* Applies to those reaching state retirement age after 5 April 2016.
Taxable benefit: List price of car multiplied by chargeable percentage.

CO2
g/km

Electric
Range
miles

2021-22
chargeable percentage for cars first registered

2022-23

Pre
6-04-2020
Post
5-04-2020
All Cars
0 N/A 1% 1% 2%
1-50 >130 2% 1% 2%
1-50 70-129 5% 4% 5%
1-50 40-69 8% 7% 8%
1-50 30-39 12% 11% 12%
1-50 <30 14% 13% 14%
51-54 N/A 15% 14% 15%
Then a further 1% for each 5g/km CO2 emissions, up to a maximum of 37%.
Diesel cars that are not RDE2 standard suffer a 4% supplement on the above figures but are still capped at 37%.
FUEL BENEFIT

2021-22

2022-23

 

 

 

Multiply the CO2% used for the car benefit by

£24,600

£25,300

Vans – Fixed charge

£3,500

£3,600

Vans – Fuel benefit  (if fuel is provided by the employer for private travel)

£669

£688

Zero-emission vans charged

£0

£0

The Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011.
The money in the CTF account belongs to the child but can’t be taken out until they are 18.
Parents, family and friends can add money to the account up to a limit of £9,000 in the 2021 to 2022 tax year.


You can’t apply for a new Child Trust Fund because the scheme is now closed. You can apply for a Junior ISA instead.


JUNIOR ISA

You can’t have a Junior ISA as well as a Child Trust Fund. If you want to open a Junior ISA ask the provider to transfer the trust fund into it.
The money in the Junior ISA account belongs to the child. The child can take control of the account when they’re 16 but can’t withdraw until they are 18.


Your child can only have:

  • 1 cash Junior ISA
  • 1 stocks and shares Junior ISA

Anyone (including child) can pay money into a Junior ISA, but the total amount paid in can’t go over £9000 in the 2021 to 2022 tax year.

(Effective from 01 December 2021)
for employee private mileage reimbursement or employer reimbursement of business mileage in company cars

 

 

Engine Size

Petrol – rate per mile

1400cc or less

13p

1401cc – 2000cc

15p

Over 2000cc

22p

Engine Size

LPG – rate per mile

1400cc or less

9p

1401cc – 2000cc

10p

Over 2000cc

15p

Engine Size

Diesel – rate per mile

1600cc or less

11p

1601cc – 2000cc

13p

Over 2000cc

16p

 

2021-22

Share incentive plans

 

Employer contributions

£3,600

Employer matching

(2:1)

Employee

£1,800

 

 

Enterprise management incentive option value

£250,000

Approved share option schemes option value

£30,000

Savings-related share options per month (up to)

£500

 

2021-22

2022-23

Overall limit

£20,000

£20,000

Lifetime ISA

£4,000

£4,000

Junior ISA

£9,000

£9,000

Relief

EIS

30%

£2,000,000

£2,000,000

Seed EIS (SEIS)

50%

£100,000

£100,000

Venture Capital Trust (VCT)

30%

£200,000

£200,000

 Description

 

2021-22

2022-23

Nil rate band (NRB)

(1)

£325,000

£325,000

NRB Residential enhancement (RNRB)

(2)

£175,000

£175,000

Tax rate on death

(3)

40%

40%

Tax rate on lifetime transfers to most trusts

 

20%

20%

(1) Up to 100% of the proportion of a deceased spouse’s/civil partner’s unused NRB and RNRB band may be claimed to increment the current NRB and RNRB when the survivor dies.

(2) RNRB is available for transfers of a main residence to (broadly) direct descendants. It tapers away at the rate of £1 for every £2 of estate value above £2m.

(3) Rate reduced to 36% if at least 10% of the relevant estate is left to charity. Unlimited exemption for transfers between spouses/civil partners, except if UK domiciled transferor and foreign domiciled transferee, where maximum exemptio £325,000.

100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland/buildings.

 

Reduced tax charge on gifts within 7 years before death

Years before death

0-3

3-4

4-5

5-6

6-7

% of full death tax charge payable

100

80

60

40

20

Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient.

Plant and machinery allowances

Rate

Expenditure 1.4.21 - 31.3.23 (companies only)

Super-deduction (main pool expenditure)

130%

First-year allowance (special rate pool expenditure)

50%

Annual Investment Allowance (AIA)

expenditure 1.1.19 - 31.3.23 of up to £1,000,000

100%

New electric vans

100%

Writing down allowance: general pool (reducing balance)

18%

Writing down allowance: special rate pool (reducing balance)

6%

Motor cars purchased

From 1.4.21
CO2 (g/km)

1.4.18 to 31.3.21
CO2 (g/km)

Allowance

New cars only

Nil

up to 50

100%

In general pool

up to 50

up to 110

18%

In special rate pool

above 50

above 110

6%

Structures and buildings allowance

Fixed deduction per annum

 

 

3%

 

Payment dates
Self assessment 2021/22 2022/23
1st payment on account 31 January 2022 2023
2nd payment on account 31 July 2022 2023
Balancing payment 31 January 2023 2024
Capital Gains Tax (A) 31 January 2023 2024
(A) UK residential property: CGT due within 60 days of completion. For non-UK residents, this applies for all UK land and buildings.
 
Other payment dates 2021/22 2022/23
Class 1A NIC 19 July 2022 2023
Class 1B NIC 19 October 2022 2023
 
Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a ‘large’ company paying by quarterly instalments.
 
2021/22 Filing deadlines 2021/22 2022/23
Issue P60s to employees 2022 31 May
P11D, P11D(b) 2022 6 July
Self Assessment Tax Return (SATR)
paper version 2022 31 October
Online SATR if outstanding tax to be included in 2023/24 PAYE code (if under £3,000) 2022 30 December
Online SATR 2023 31 January
A CGT return is due within 60 days of completion of sale of UK land and buildings by a non-resident and of sale of UK residential property with a tax liability by a UK resident.

Working Tax Credit for those without Children (£)

Annual income (£)

Single person aged 25 or over working 30 or more hours a week

Couple (working adults aged 25 or over ) working 30 or more hours a week

                  *11,700

                              795

                            2,615

                  12,000

                              485

                            2,495

                  13,000

                                75

                            2,085

                  14,000

                                 –  

                            1,675

                  15,000

                                 –  

                            1,265

                  16,000

                                 –  

                              855

                  17,000

                                 –  

                              445

                  18,000

                                 –  

                                35

                  19,000+

                                 –  

                                 –  

* Someone aged 25 or over, working 30 hours a week on

National Living Wage (Based on April 2017 rates)

would earn £11,700 a year.

If you are in work and responsible for at least one child

Working and Child Tax Credit (£)

Annual income (£)

One child / Young person

Two children / Young person

Three children / Young person

               (*1,*2) 6,240

               7,300

               10,080

               12,865

                11,700

               5,945

               8,725

               11,510

               15,000

                 4,595

                 7,375

               10,155

               20,000

                 2,545

                 5,325

               8,105

               25,000

                 495

                 3,275

                 6,055

               30,000

                      –  

                 1,225

                 4,005

               35,000

                      –  

                      –  

                 1,955

              40,000+

                      –  

                      –  

                      –  

*1 – Those with incomes of £6,240 a year are assumed to work part-time working between 16 and 29 hours a week).

*2 – In families with an income of £11,700 a year or more, at least one adult is assumed to be working 30 hours or more a week (consistent with a minimum adult living wage of £7.50 (based on April 2016 rates) for those aged 25 and over).

Note: If you have a child with a disability you may be entitled to more.

The maximum amounts may be higher if you are entitled to the disability or childcare elements of Working Tax Credit.

If you do not qualify for working tax credit

Child Tax Credit Only (£)

Annual income (£)

One child

Two children

Three children

                    No income

                    3,330

                    6,110

                    8,890

                    5,000

                    3,330

                    6,110

                    8,890

                    8,000

                    3,330

                    6,110

                    8,890

                  10,000

                    3,330

                    6,110

                    8,890

                  15,000

                    3,330

                    6,110

                    8,890

                  20,000

                    1,730

                    4,515

                    7,295

                  25,000

                          –  

                    2,465

                    5,245

                  30,000

                          –  

                       415

                    3,195

                  35,000

                          –  

                          –  

                    1,145

                  40,000

                          –  

                          –  

                          –  

Note: If you have a child with a disability you may be entitled to more.

Using this table, if your income is £15,000 a year and you have 2 children but are not eligible for Working Tax Credit, you could get an annual Child Tax Credit award of £6,110, equivalent to £117.50 a week.

Who is eligible for Jobseeker’s Allowance?

To claim Jobseeker’s Allowance you need to be actively looking for work and:
# over 18 but below State Pension age
# unemployed or working fewer than 16 hours per week
# living in England, Scotland or Wales
Under 18s: you can’t get Jobseeker’s Allowance, except in special circumstances.
Under 20s: you can’t get Jobseeker’s Allowance while you are in education and your parents are receiving Child Benefit for you.
Full time students: you can’t usually get Jobseeker’s Allowance until your course has officially finished – check the date with your college or university.

How much will you get paid?

Depending on your circumstances you may be entitled to the following amounts:

Age

Maximum weekly amount

18 to 24

up to £59.20

25 or over

up to £74.70

Couples (both aged over 18)

up to £117.40 

2021/22

2022/23

Lifetime Allowance (LA)

£1,073,100

£1,073,100

Annual Allowance (AA)*

£40,000

£40,000

Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600.

* Usually tapered down, to a minimum of £4,000, when adjusted income exceeds £240,000.

Transfers of property are subject to stamp duty land tax at the following rates:

 

 

 

Residential

Standard Rate
(Single)

Buy-to-let
(Second home rate)

Value up to to £125,000

0%

3%

Over £125,000* to £250,000

2%

5%

Over £250,000 to £925,000

5%

8%

Over £925,000 to £1,500,000

10%

13%

Over £1,500,000**

12%

15%

The calculation of SDLT on purchase of non-residential property was changed from the whole transaction value to the same basis as residential (consideration falling within each band).

Commercial

 

Tax Rate

Value up to £150,000

 

0%

Over £150,000 to £250,000

 

2%

Over £250,000

 

5%

The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is generally payable at 0.5 per cent. If you buy stocks and shares for £1,000 or less you don’t normally have to pay any stamp duty.

New Leases

 

 

Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV), with a single rate of 1% on residential NPV’s over £125,000

Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV) at 1% on non-residential NPV’s over £150,000 and this rises to 2% on leases with an NPV greater than £5m.

VAT is excluded from treatment as consideration provided the landlord has not opted to charge VAT by the time the lease is granted.

Lease premiums

 

 

Duty on premiums is the same as for transfers of land .

A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows:

Cars and vans:

 

on the first 10,000 miles in the tax year

45p per mile

on each additional mile above this

25p per mile

 

 

Motorcycles

24p per mile

 

 

Bicycles

20p per mile

   

Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.

Rates of up to 5p per mile, per passenger, are also tax and NICs free when paid for the carriage of fellow employees on the same business trip. This also covers volunteers who drive for hospital car services etc, even though they are not strictly employees.