Income tax band and rates
Useful Information
2019/20
2018/19
Basic rate
20%
20%
Higher rate
40%
40%
Additional rate
45%
45%
Personal allowance (PA)
£12,500
£11,850
Basic rate band
£1 → £37,500
£1 → £34,500
Higher rate band
£37,501 → £150,000
£34,501→ £150,000
Marriage allowance
£1,250
£1,190
Saving PA – only saving income
£5,000
£5,000
Saving PA – basic rate taxpayer
£1,000
£1,000
Saving PA – higher rate taxpayer
£500
£500
Saving PA – additional rate taxpayer
Nil
Nil
Dividend personal allowance
£2,000
£2,000
Dividend basic rate taxpayer
7.5%
7.5%
Dividend higher rate taxpayer
32.5%
32.5%
Dividend additional rate taxpayer
38.1%
38.1%
National Insurance Contributions
2019/20
2018/19
Class 1 primary (employee) contributions
Lower earning limit (LEL)
£118 weekly
£116 weekly
Primary threshold
£166 weekly
£162 weekly
Upper earning limit (UEL)
£962 weekly
£892 weekly
Rate above primary threshold
12%
12%
Rate above upper earning limit (UEL)
2%
2%
Class 1 secondary (employer) contributions
Secondary earnings threshold (ST)
£166 weekly
£162 weekly
Upper secondary threshold for U21’s (UST)
£962 weekly
£892 weekly
Apprentice upper secondary threshold for U25’s (AUST)
£962 weekly
£892 weekly
Rate above ST / UST / AUST
13.8%
13.8%
Employment Allowance (per year, per employer)
£3,000
£3,000
Class 2 – Self employed
Weekly rate
£3.00
£2.95
Small earning exemption
£6,365
£6,205
Class 4 – Self employed
Rate above upper
2%
2%
Rate above lower before upper
9%
9%
Annual earning upper limit
£45,000
£46,350
Annual earning lower limit
£8,164
£8,424
Capital Gains
2019/20
2018/19
Chattel exemption
£6,000
£6,000
Annual exempt amount
£12,000
£11,700
Higher rate (above income basic tax rate band)
20%
20%
Standard rate (within income basic tax rate band)
10%
10%
Entrepreneurs relief
10%
10%
Corporation Tax
2019/20
2018/19
Main rate
19%
19%
VAT
£
Annual deregistration limit – taxable supplies (from 1st April 2017)
£83,000
Annual registration limit – taxable supplies (from 1st April 2017)
£85,000
Reduced rate
5%
Standard rate (since 4th January 2011)
20%
Minimum Wage
From 1st April 2019
Apprentice
£3.90 per hour
18 years old and under
£4.35 per hour
18 → 20 years old
£6.15 per hour
21 → 24 years old
£7.70 per hour
25 years old and over
£8.21 per hour