Tax Rates & Dates
Some useful information regarding tax rates, key dates, tax codes and minimum wages is provided below for your reference.
- Key Dates
- Tax Codes
- Minimum Wages
More rates can be found at www.hmrc.gov.uk/rates/index.htm
Budget 2020 Tax Rates and Allowances
2020/21 £ |
2019/20 £ |
|
---|---|---|
Income Tax Rates (non-dividend income) | ||
Lower rate tax – savings rate only | 0% up to 5,000 | 0% up to 5,000 |
20% basic rate tax | up to 37,500 | up to 37,500 |
40% higher rate tax | 37,501-150,000 | 37,501-150,000 |
45% additional rate tax | Above 150,000 | Above 150,000 |
Marriage Allowance | 1,250 | 1,250 |
Lower rate tax applies to savings income only and will not apply if non-savings income exceeds threshold. | ||
Income Tax Rates (dividend income) | ||
7.5% rate | 2,001 to 37,500 | 2,001 to 37,500 |
32.5% higher dividend rate | 37,501 – 150,000 | 37,501 – 150,000 |
38.1% higher dividend rate | Above 150,000 | Above 150,000 |
Personal Allowances | ||
Personal allowance | 12,500 | 12,500 |
Rent-a-room relief | 7,500 | 7,500 |
Savings Allowance | 1,000 | 1,000 |
Budget 2020 National Insurance
2020/21 £ |
2019/20 £ |
|
---|---|---|
National Insurance – the Employment Allowance is £3,000 to set against employer’s Class 1 NIC | ||
Lower earnings limit, primary Class 1 (per week) | 120 | 118 |
Upper earnings limit, primary Class 1 (per week) | 962 | 962 |
Primary threshold (per week) | 183 | 166 |
Secondary threshold (per week) | 169 | 166 |
Employee’s primary Class 1 rate between primary threshold and upper earnings limit | 12% | 12% |
Employee’s primary Class 1 rate above upper earnings limit | 2% | 2% |
Married woman’s reduced rate between primary threshold and upper earnings limit (opted in pre April 1977) | 5.85% | 5.85% |
Married woman’s rate above upper earnings limit | 2% | 2% |
Employer’s secondary Class 1 rate above secondary threshold | 13.80% | 13.80% |
Class 2 rate (per week) | 3.05 | 3.00 |
Class 2 small profits threshold (per year) | 6,475 | 6,365 |
Class 3 rate (per week) | 15.30 | 15.00 |
Class 4 lower profits limit | 9,500 | 8,632 |
Class 4 upper profits limit | 50,000 | 50,000 |
Class 4 rate between lower profits limit and upper profits limit | 9% | 9% |
Class 4 rate above upper profits limit | 2% | 2% |
2020/21 £ |
2019/20 £ |
|
---|---|---|
State Pension | ||
New State Pension | 175.20 | 168.60 |
Category A or B basic pension | 134.25 | 129.20 |
Category B basic pension (lower) – husband’s insurance | 80.45 | 77.45 |
Category C or D – non-contributory | 80.45 | 77.45 |
Pension Credit | ||
Standard minimum guarantee – single | 173.75 | 167.25 |
Standard minimum guarantee – couple | 265.20 | 255.25 |
Pensions | ||
Annual allowance | 40,000 | 40,000 |
Lifetime allowance | 1,073,100 | 1,055,000 |
2020/21 £ |
2019/20 £ |
|
---|---|---|
Individual Savings Account (ISA) | ||
Individuals aged 50 years old or above during tax year | ||
total maximum investment | 20,000 | 20,000 |
maximum cash element of ISA | 20,000 | 20,000 |
Junior ISA investment limit | 9,000 | 4,368 |
Capital Gains Tax | ||
Rate – basic rate tax payer | 10% | 10% |
Higher rate tax payer | 20% | 20% |
Individuals exempt limit | 12,300 | 12,000 |
Other trusts | 6,150 | 6,000 |
2020/21 £ |
2019/20 £ |
|
---|---|---|
Inheritance Tax | ||
Single persons nil rate band | 1-325,000 | 1-325,000 |
Single persons 40% band | over 325,000 | over 325,000 |
Married couples or civil partnerships allowance nil rate band | 1,000,000 | 950,000 |
Overseas domiciled spouse exemption | 325,000 | 325,000 |
Residence nil rate band | 175,000 | 150,000 |
Gifts to charities | exempt | exempt |
Small gifts to same person | 250 | 250 |
Marriage/civil partnership gifts by: | ||
Parent | 5,000 | 5,000 |
Grandparent/party | 2,500 | 2,500 |
Other person | 1,000 | 1,000 |
A reduced rate of IHT of 36% applies where 10% or more of the net estate is left to charity. |
2020/21 £ |
2019/20 £ |
|
---|---|---|
Business Property Relief | ||
Business or interest in a business and transfer if unquoted shareholdings | 100% | 100% |
Corporation Tax | ||
Normal main rate | 19% | 19% |
Capital Allowances | ||
Main writing down allowance | 18% | 18% |
Special rate writing down allowance | 6% | 6% |
Annual Investment Allowance, subject to change | 1,000,000 | 1,000,000 |
First year allowances for certain energy-saving/water efficient products | 100% | 100% |
VAT | ||
Standard rate | 20% | 20% |
Registration threshold | 85,000 | 85,000 |
Deregistration threshold | 83,000 | 83,000 |
Cash accounting scheme upper limit | 1,350,000 | 1,350,000 |
Annual accounting scheme upper limit | 1,350,000 | 1,350,000 |
Flat rate scheme upper limit | 150,000 | 150,000 |
Key Dates
HMRC, Companies House and FSA impose various penalties and interest for lateness and inaccuracies.
Payroll Deadlines
05 April – Last day of tax year
19 April – Last date to submit EPS reports under RTI
31 May – P60s due to employees
06 July – P11D, P9D, P11D(b) forms due to HMRC and copies to employees as required
19 July – Class 1A NIC due for year-end 05 April
19 October – Class 1B NIC due for year end 05 April
VAT Deadlines
Quarter end date – one month and seven days to submit online return and send cleared payment
Self Assessment Deadlines
For individuals, sole traders and partnerships
31 July 2020 – second payment on account for 2019/2020
31 October 2020 – submission of paper tax return
31 January 2021 – submission of online return
31 January 2021 – First payment on account for 2020/2021 and any balance due for 2019/2020
Limited Company Deadlines
Within 9 months of year-end date – file company tax return online and pay corporation tax
Within 12 months of year end date file company tax return
Once a year – submit Company Annual Return to Companies House (officers and shareholders details)
Charity Deadlines
Registered charity – Trustees Annual Report to Charity Commission within 10 months of year end
Incorporated charity – submit accounts within 9 months of year end (and pay corporation tax if applicable)
Clubs and Association Deadlines
Registered with FSA – FSA return within 7 months of year end
Tax Codes
BR – earnings taxed at base rate, currently 20%
0T – no personal allowance, taxed at the appropriate rates
D0 – earnings taxed at higher rate, currently 40%
D1 – earnings taxed at second higher rate, currently 45%
NT – no tax is deducted from earnings
L – amount of personal allowance
M – marriage allowance – have received a transfer of 10% of your partner’ personal allowance.
N – marriage allowance – you have transferred 10% of your personal allowance to your partner.
S – Scottish rate of income tax.
T – temporary code
Y – maximum personal allowance for those born before 6 April 1939
K – followed by a number which is the amount to add to earnings to work out taxable pay
National Living Wage – from 1st April 2020
25 and over £8.72 per hour
National Minimum Wage from 1st April 2020
Aged 21 to 24 – £8.20 per hour
Aged 18 to 20 – £6.45 per hour
Aged under 18 – £4.55 per hour
Apprentice – £4.15 per hour