Useful Information

Income tax band and rates

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

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