Taxable Income bands and corresponding rates

Taxable Income bands and corresponding rates
Basic rate20%20%
Higher rate40%40%
Additional rate45%45%
Starting rate of saving income0%0%
Dividend ordinary rate (effective rate with tax credit)0%0%
Dividend higher rate (effective rate with tax credit)32.5% (25%)32.5%
Dividend additional rate (effective rate with tax credit)37.5% (30.6%)38.1%
Starting rate limit (savings income)£5,000£5,000
Basic rate band£0 – 31,785£0 – 32,000
High rate band£31,786-150,000£31,786-150,000
Additional rate bandOver £150,000Over £150,000
Income Tax Allowances
Personal allowance:
Born before 5 April 1938£10,600£11,000
Born after 5 April 1938£10,660£11,000
Income limit for personal allowances£100,000£100,000
Income limit for personal allowances (born before 6 April 1938)£27,700£27,700
Marriage allowance:
Marriage allowance£1,060£1,100
Married couple’s allowance for those born before 6 April 1935
Maximum amount of MCA£8,355£8,355
Maximum amount of MCA£3,220£3,220
Blind person’s allowance:
Blind person’s allowance2,2902,290
Dividend allowance:
Dividend allowance-£5,000
Personal savings allowance:
For basic rate taxpayer-£1,000
For higher rate taxpayer-£500
National Insurance Contribution Thresholds
£ per week
£ per week
Weekly lower earnings limit (LEL)113112
Weekly primary threshold (PT)157155
Weekly secondary threshold (ST)157156
Upper earnings limit (UEL)866827
Upper profits limit (per year)45,00043,000
Upper Secondary Threshold for U21’s866827
Small Profits Threshold (SPT)6,0255,965
Lower Profits Limit (LPL)8,1648,060
Employment allowance3,000 per year
per employer
3,000 per year
per employer
Apprentice Upper Secondary Threshold (AUST) For under 25s866827
Class 1 National Insurance rates
Employee (Primary)Earnings (£ a week)NIC Rate (%)NIC Rate (%)
Below LEL00
LEL - PT00
PT - UEL1212
Above UEL22
Below ST00
Above ST13.813.8
Self-employed National Insurance contribution rates Class 2 NIC
Annual Profits (£ a year)Class 2 (£ a week)Class 2 (£ a week)
Below SPT0.000.00
Above SPT2.852.80
Class 4 NIC Annual Profits (£ a year)NIC Rate (%)NIC Rate (%)
Below LPL00
Above UPL22

Leave a Reply

Your email address will not be published. Required fields are marked *