As we approach the busiest time of year in the financial calendar, we provide a reminder of the key rates and thresholds applicable to those working in England and Northern Ireland.
|Employee personal allowance||£240 per week
£1,042 per month
£12,500 per year
|Basic tax rate||20% on annual earnings above the PAYE tax threshold and up to £37,500|
|Higher tax rate||40% on annual earnings from £37.500 to £150,000|
|Additional tax rate||45% on annual earnings above £150,000|
The amount of gross income you can have before your personal allowance is reduced.
|Income Limit (Born after 5 April 1948)||£100,000|
|Income Limit (Born before 6 April 1948) *||£29,600|
You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL).
|LEL||£118 per week|
|Primary Threshold (PT)||£166 per week|
|Secondary Threshold (ST)||£166 per week|
|Upper Secondary Threshold (under 21) (UST)||£962 per week|
|Apprentice Upper Secondary Threshold (apprentice under 25) (AUST)||£962 per week|
|Upper Earnings Limit (UEL)||£962 per week|
These are deducted from an employee’s pay via PAYE.
|National Insurance category letter||Earnings at or above LEL up to and including PT||Earnings above the PT up to and including UEL||Balance of earnings above UEL|
|H (Apprentice under 25)||0%||12%||2%|
|M (under 21)||0%||12%||2%|
|Z (under 21 – deferment)||0%||2%||2%|
Paid to HMRC as part of your PAYE bill.
|National Insurance category letter||Earnings at or above LEL up to and including ST||Earnings above ST up to and including UEL/UST/AUST||Balance of earnings above UEL/UST/AUST|
|H (Apprentice under 25)||0%||0%||13.80%|
|M (under 21)||0%||0%||13.80%|
|Z (under 21 – deferment)||0%||0%||13.80%|
|Class 4 Lower Profits Limit (Annual)||£8,632|
|Class 4 Upper Profits Limit (Annual)||£50,000|
|Class 4 Rate Between Lower and Upper Profits||9%|
|Class 4 Rate Above Upper Profits||2%|
|Class 2 Earnings Exception Limit||£6,365|
|Class 2 Weekly Amount||£3.00|
|Class 2 Weekly Amount (Share Fisherman)||£3.65|
|Class 2 Weekly Amount (Volunteer Development Workers)||£5.90|
You only pay tax on dividends that go above your dividend allowance in the tax year. The allowance for 2019/2020 is £2,000.
|Basic Rate||£0 – £37,500||7.5%|
|Higher Rate||£37,501- £150,000||32.5%|
|Additional/Top Rate||Over £150,000||38.1%|
|Annual Exempt Amount – Individuals, Personal Reps and Trustees for Disable People||£12,000|
|Annual Exempt Amount – Other Trustees||£6,000|
|CGT Tax Rates|
|Individuals – Basic Rate Taxpayer (Residential Property)||18%|
|Individuals – Higher Rate Taxpayer (Residential Property)||28%|
|Individuals – Basic Rate Taxpayer (Other Gains)||10%|
|Individuals – Higher Rate Taxpayer (Other Gains)||20%|
|Personal Representative of a Deceased Individual (Residential Property)||28%|
|Personal Representative of a Deceased Individual (Other Gains)||20%|
|Gains Qualifying for Entrepreneurs’ Relief||10%|
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As we approach the busiest time of year in the financial calendar, we provide a reminder go the key rates and thresholds applicable to those working in England and Northern Ireland.