Tax Tables


Income tax rate and Bands

Type 2019 – 20 2020 – 21
Income Band Rate % Dividend Rate % Income Band Rate % Dividend Rate %
Starting rate for Savings Up to £5,000 0.0% N/A Up to £5,000 0.0% N/A
Basic rate Up to £37,500 20.0% 7.5% Up to £37,500 20.0% 7.5%
Higher rate £37,501 to £150,000 40.0% 32.5% £37,501 to £150,000 40.0% 32.5%
Additional rate Over £150,001 45.0% 38.1% Over £150,001 45.0% 38.1%

If an individual's taxable non-savings income exceeds the starting rate limit, then the starting rate will not be available for savings income. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax-free.


First £2,000 you receive in dividends from investments tax free.


From 6 April 2016 onwards the 10% tax credit on dividends is abolished.

Trusts 2019 – 20 2020 – 21
For interest in possession trusts on all income, and other trusts on the first £1,000 of income ("standard rate band"):
Dividend type income – ordinary rate 7.5% 7.5%
Savings income 20% 20%
Other income 20% 20%
Income of other trusts above £1,000 is taxed at the special trust rates:
Rate applicable to trusts for all other income 45% 45%
Dividend type income – trust rate 38.1% 38.1%

Trustees don’t qualify for the new dividend allowance, introduced for individuals from 6 April 2016. This means trustees pay tax on all dividends depending on the tax band they fall within.

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Income Tax Allowance 2019-20 2020-21
Personal allowance A, D £12,500 £12,500
Blind person’s allowance £2,450 £2,500
Married couple’s allowance (MCA)
Either partner born before 6th April 1935.
Maximum B, C £8,915 £9,075
Minimum B, C £3,450 £3,510
Dividend allowance £2,000 £2,000
A. Personal allowance is reduced by £1 for every £2 that net adjusted income exceeds £100,000.
B. Reduced by £1 for each £2 of income (less deductions) which exceeds £30,200 (2019/20: £29,600).
C. Restricted to relief at 10%.
D. Spouses or civil partners will be able to transfer £1,250 (2019/20: £1,250) of their unused Personal Allowance to their partner. This is available provided neither person pays tax at the higher rate. This is not available if the couple are in receipt of married couple’s allowance.

Construction Industry Scheme deduction rate: 2019-20 2020-21
Standard (registered) 20% 20%
Higher (not registered) 30% 30%

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of
Up to £120 (lower earnings limit) Nil Nil
£121 – £183 (primary threshold) 0% 0% (B)
£183.01 – £962 (upper accrual point) 13.80% 12%
Over £962 (upper earnings limit) 13.80% 2%
Over state retirement age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.80% Nil
Class 1B (on PAYE settlement arrangement) 13.80% Nil
Employer allowance Up to £3,000 per year (2019-20)
Class 2 (Self employed) £3.05 per week (2019-20)
Limit of net earnings for exemption £6,475 per annum
Class 3 (Voluntary) £15.30 per week
Class 4 @ (Self employed on profits)
£9,500 to £50,000 9%
Excess over £50,000 2%
@ Exemption applies if state retirement age was reached by 6 April 2017.
Note:

A. For apprentices under the age of 25, the Apprentice Upper Secondary Threshold is also £962 per week. This means that employers will not be required to pay employer Class 1 NICs in respect of the wages they pay to apprentice employees under the age of 25 up to £962 per week.
B. No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects certain basic state benefit entitlements.
C. Employers are not required to pay employer Class 1 NICs in respect of the wages they pay to employees under the age of 21 up to £962 per week.
Details 2019-20 2020-21
Exemptions
Individuals, estates, etc 12,000 12,300
Trusts generally 6,000 6,150
Chattels proceeds (Proceed per item or set) 6,000 6,000
Rates
Standard rates – Up to £37,500 (2018-19: £34,500) 10% or 18% (A) 10% or 18% (A)
Higher rates – From £37,501 (2018-19: £34,501) 20% or 28% (A) 20% or 28% (A)
Entrepreneurs’ Relief
Lifetime limit 10,000,000 1,000,000 (B)
The first gains up to above limit will be charged at following rate. Gains in excess of the exception will be charged at the normal rate.
Entrepreneurs’ Relief Rate 10%
For trading businesses & companies (min 5% employee shareholding) held for 2years.
(A) CGT rates of 10% and 20% introduced for disposals on or after 6 April 2017 do not apply to transactions involving residential property or carried interest. CGT rates for these transactions remain at 18% and 28%
(B) For disposals on or after 11 March 2020 ER lifetime relief is reduced to £1 million.
Profits £ 2019-20 2020-21
Corporation Tax rate 19.00% 17.00%
The rate of corporation tax will remain 19% for 2018/19 and 2019/20, and will decrease further to 17% for 2020/21
Details Current Rate
Standard Rate 20%
Reduced Rate (certain fuel and power, some energy saving materials, some residential property works etc.) 5%
Zero Rate (newspapers, children’s clothes etc.) 0%
Taxable Turnover Limits
Registration – last 12 months or next 30 days over £85,000
from 1 April 2016
Deregistration – next 12 months under £83,000
from 1 April 2016
Cash accounting scheme – up to £1,350,000
Flat rate scheme – up to £150,000
Annual accounting scheme – up to £1,350,000
Type 2019 – 20 2020 – 21
WEEKLY ANNUAL WEEKLY ANNUAL
Single Pension 129.20 6,718.40 134.24 6,981
Dependant’s addition
Total married Pension 258.40 13,436.80 268.50 13,962
New State Pension 168.60 8,767.20 175.18 9,110.40
Chargeable on employees earning £8,632 or over (including benefits), and directors.
Benefit is calculated as a percentage of the Price of the car. This percentage depends upon the rate at which the car emits carbon dioxide (CO2), and the fuel type.

Table for the year 2019 – 20
CO2 emissions Appropriate percentage CO2 emissions Appropriate percentage
(g/km) Petrol % Diesel % (g/km) Petrol % Diesel %
0-50 16 19 145-149 33 36
51-75 19 22 150-154 34 37
76-94 22 25 155-159 35 37
95-99 23 26 160-164 36 37
100-104 24 27 165-169 37 37
105-109 25 28 170 and above 37 37
110-114 26 29
115-119 27 30
120-124 28 31
125-129 29 32
130-134 30 33
135-139 31 34
140-144 32 35
To find CO2 emission of your car check Car registration documents or following website
http://carfueldata.direct.gov.uk
FUEL BENEFIT

2019-20

2020-21

 

 

 

Multiply the CO2% used for the car benefit by

£24,100

£24,500

Vans – Fixed charge

£3,430

£3,490

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

£655

£666

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 £4,368 in the 2019 to 2020 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 £4,368 in the 2019 to 2020 tax year.

(Effective from 01 Mar 2020)
for employee private mileage reimbursement or employer reimbursement of business mileage in company cars

 

 

Engine Size

Petrol

1400cc or less

12p

1401cc – 2000cc

14p

Over 2000cc

20p

Engine Size

LPG

1400cc or less

  8p

1401cc – 2000cc

  10p

Over 2000cc

14p

Engine Size

Diesel

1600cc or less

  9p

1601cc – 2000cc

11p

Over 2000cc

13p

 

2019-20

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

 

 

2019-20

Maximum Investment Component

 

£20,000

Investment can be split in to Cash ISA, Stocks & Shares ISA , innovative finance ISA and Lifetime ISA up to the total limit specified.

 

 

Example: You could save £15,000 in a cash ISA, £2,000 in a stocks and shares ISA, £3,000 in an innovative finance ISA and £4,000 in a Lifetime ISA in one tax year.

 Description

 

 

2019-20

 

2020-21

 

 

 

 

Standard threshold

 

 

£325,000

 

£325,000

Combined threshold maximum for married couples and civil partners

 

£650,000

 

£650,000

 

 

 

 

 

 

Rate of tax on balance:

 

 

 

 

 

Chargeable lifetime transfers

 

 

20%

 

20%

Transfers on, or within 7 years of, death

 

40%

 

40%

 

 

 

 

 

 

100 % Relief :

Business Assets, Unlisted/AIM company shares, Certain farmlands/buildings

50 % Relief :

Certain other business assets and Certain farmlands/buildings

 

Reduced Tax charge on gifts within 7 years of death

Years before death

0-3

3-4

4-5

5-6

6-7

Tax reduced by

0%

20%

40%

60%

80%

Main exemptions

 

 

 

 

 

1. Most transfers between spouses and civil partners.

2. The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.

3. Gifts of up to but not exceeding £250 p.a. to any number of persons.

4. Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent, or up to £1,000 by any other person.

 

5. Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.

6. Gifts to charities, whether made during lifetime or on death.

7. If you give away your home to your children (including adopted, foster or stepchildren) or grandchildren, your threshold will increase to £475,000.

Plant and Machinery and others

 

Energy saving and environmentally beneficial equipment, Zero and low CO2 emission (up to 95g/km) cars, new and unused zero emission goods vehicles, natural gas/hydrogen refuelling equipment: first year allowance (FYA)

100%

Annual investment allowance (AIA) – on first £200,000 of investment (excludes cars and other expenditure already qualifying for 100% FYA)

100%

Writing down allowance on expenditure not qualifying for AIA or FYA:

 

Long-life assets, integral features of buildings, cars over 130g/km

8%

Other plant and machinery, cars between 75g/km to 130g/km

18%

Motor cars : Expenditure on or after 01 April 2015

CO2 emissions of g/km :

75 or less

75-130

131 or more

Capital allowance :

100%

18%

8%

 

Due Dates

Income Tax (including Class 4 NIC)

31 July 2020

2019/20 second payment on account

31 January 2020

2018/19 balancing payment, and 2019/20 first payment on account

31 July 2021

2020/21 second payment on account

31 January 2021

2019/20 balancing payment, and 2020/21 first payment on account

Class 1A NICs

 

19 July 2020

2019/20 payment due

Capital Gains Tax

 

31 January 2021

2019/20 Capital Gains Tax

31 January 2020

2018/19 Capital Gains Tax

Corporation Tax

 

9 months and one day after the end of the accounting period
(or by quarterly instalments if large company)

Inheritance Tax

 

6 months after the end of the month of death.

For chargeable lifetime transfers, due date is six months after the end of the month in which the transfer was made.

Latest Filing/Issuing Deadlines – 2019/20 PAYE Returns

31-May-20

Issue P60s to employees

    6-Jul-20

P9D, P11D and P11Db – also issue copies to employees

 

 

2020 Self Assessment Tax Return

31 October 2020

Last filing date - SATR Paper Version

30 December 2019

SATR Online if outstanding tax (subject to cap) to be included in 2020/21 PAYE code

31 January 2021

Last filing date - SATR Online

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

                              610

                            2,622

                  12,000

                              487

                            2,500

                  13,000

                                77

                            2,089

                  14,000

                                 –  

                            1,680

                  15,000

                                 –  

                            1,270

                  16,000

                                 –  

                              860

                  17,000

                                 –  

                              450

                  18,000

                                 –  

                                40

                  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

                6,240

               7,569

               10,896

               13,678

                11,700

               5,404

               8,731

               11,513

               15,000

                 4,051

                 7,378

               10,160

               20,000

                 2,001

                 5,328

               8,110

               25,000

                      –  

                 3,278

                 6,060

               30,000

                      –  

                 1,228

                 4,010

               35,000

                      –  

                 0

                 1,960

              40,000+

                      –  

                 0

                      –  

*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 £57.90

25 or over

up to £73.10

Couples (both aged over 18)

up to £114.85 

There is no financial limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual’s UK relevant earnings or £3,600.

If total pension input exceeds the annual allowance of £40,000, there may be a tax charge on the excess.

Maximum age for tax relief

74

Minimum age for taking benefits

55

Lifetime allowance charge – lump sum paid

55%

Lifetime allowance charge – monies retained

25%

on cumulative benefits exceeding

£1,000,000*

Maximum tax-free lump sum

25%*

*Subject to transitional protection for excess amount.

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.