Income tax band and rates
Useful Information
2021/22
2020/21
Basic rate
20%
20%
Higher rate
40%
40%
Additional rate
45%
45%
Personal allowance (PA)
£12,570
£12,500
Basic rate band
£1 → £37,700
£1 → £37,500
Higher rate band
£37,701 → £150,000
£37,501→ £150,000
Marriage allowance
£1,260
£1,250
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
2021/22
2020/21
Class 1 primary (employee) contributions
Lower earning limit (LEL)
£120 weekly
£120 weekly
Primary threshold
£184 weekly
£183 weekly
Upper earning limit (UEL)
£967 weekly
£962 weekly
Rate above primary threshold
12%
12%
Rate above upper earning limit (UEL)
2%
2%
Class 1 secondary (employer) contributions
Secondary earnings threshold (ST)
£170 weekly
£169 weekly
Upper secondary threshold for U21’s (UST)
£967 weekly
£962 weekly
Apprentice upper secondary threshold for U25’s (AUST)
£967 weekly
£962 weekly
Rate above ST / UST / AUST
13.8%
13.8%
Employment Allowance (per year, per employer if applicable)
£4,000
£4,000
Class 2 – Self employed
Weekly rate
£3.05
£3.05
Small earning exemption
£6,515
£6,475
Class 4 – Self employed
Rate above upper
2%
2%
Rate above lower before upper
9%
9%
Annual earning upper limit
£50,000
£50,000
Annual earning lower limit
£9,568
£9,500
Capital Gains
2021/22
2020/21
Chattel exemption
£6,000
£6,000
Annual exempt amount
£12,000
£12,000
Higher rate (above income basic tax rate band)
20%
20%
Standard rate (within income basic tax rate band)
10%
10%
Entrepreneurs relief
10% up to £1million
10% up to £1million
Corporation Tax
2021/22
2020/21
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 2021
Apprentice
£4.30 per hour
18 years old and under
£4.62 per hour
18 → 20 years old
£6.56 per hour
21 → 22 years old
£8.36 per hour
23 years old and over
£8.91 per hour