Income Tax
2020/21
Band
Personal Allowance
Basic rate
Higher rate
Additional rate
Taxable Income
Up to £12,500
£12,501 to £50,000
£50,001 to £150,000
over £150,000
Rate
0%
20%
40%
45%
Savings Income
(Interest on savings)
Income below £17,500
Savings rate - Basic Rate
Savings rate - Higher rate
£5,000
£1,000
£500
Dividend income
Dividend allowance
Dividend ordinary rate
Dividend upper rate
Dividend additional rate
2020/21 and 2019/20
£2,000
7.5%
32.5%
38.1%
Income Tax Reliefs
Personal allowance
Personal allowance income limit
6 April 2020 - 5 April 2021
£12,500
£100,000
Individuals Savings Accounts
Overall investment limit
Junior account investment limit
2020/21
£20,000
£9,000
Devolved Income Tax
Scottish rates and bands
Band name
Starter Rate
Scottish Basic Rate
Intermediate Rate
Higher Rate
Top Rate
Bands
Over £12,500*-£14,585
Over £14,585-£25,158
Over £25,158-£43,430
Over £43,430-£150,000**
Over £150,000**
Rate
19%
20%
21%
41%
46%
* assumes individuals are in receipt of the Standard UK Personal Allowance
** those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000
Welsh rates and bands
Band name
Personal Allowance
Basic rate
Higher rate
Additional rate
Taxable income
Up to £12,500
£12,501-£50,000
£50,001-£150,000
Over £150,000
Tax rate
0%
20%
40%
45%
Capital Gains Tax
Individuals
Exemption
Standard rate
Higher/additional rate
Trusts
Exemptions
Rate
2020/21
£12,300
10%
20%
£6,150
20%
Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest.
Entrepeneurs' Relief and Investors' Relief
The first £10m of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.
Inheritance Tax
Lifetime rate
Nil
20%
Estate value thresholds
0 - £325,000
Over £325,000
Death rate
Nil
40%
0 - £325,000
Over £325,000
Mileage Allowances
Current rates of mileage costs
Car / van
Motorcycle
Bicycle
First 10,000 miles
£0.45
£0.24
£0.20
Over 10,000 miles
£0.25
£0.24
£0.20
National Insurance
2020/21 Class 1
Earnings per week
Employee
Up to £183
£166.01-£962
Over £962
%
Nil
12
2
%
Employer
Up to £183
Over £183
%
Nil
13.8
Entitlement to contribution-based benefits for employees retained for earnings between £118 and £166 per week.
The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 per week.
Class 1A (employers)
Class 1B (employers)
Class 2 (self-employed)
Class 3 (voluntary)
Class 4 (self-employed)
13.8% on employee taxable benefits
13.8% on PAYE Settlement Agreements
flat rate per week £3.05
small profits threshold £6,475 per annum
flat rate per week £15.00
9% on profits between £9,501 abd /£50,000 plus 2% on profits over £50,000
Selected Rates
Weekly benefit
Basic State Pension
New State Pension
Statutory Pay Standard Rates
Sick Pay
Maternity/Adoption Pay
Shared Parental Pay
Paternity Pay
2020/21
£
134.25
175.20
- average weekly earnings £118 (£116) or over
94.25
151.20
151.20
151.20
National Living Wage and National Minimum Wage
Age
From 1 April 2021
NLW
£8.91
21-24
£8.36
18-20
£6.56
16-17
£4.62
Apprentices
£4.30
Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 25 and over
Key Dates and Deadlines
Payment Dates
Income Tax and Class 4 NIC
1st payment on account
2nd payment on account
Balancing payment
Class 2 NIC
Capital Gains Tax
Class 1A NIC
2020/21
31st January 2021
31st July 2021
31 January 2022
31st January 2022
31st January 2022
19th July 2021
Corporation Tax - 9 months and one day after the end of accounting period (quarterly instalments if large company)
2020/21 Returns Filing Deadlines
31 May 2020
6 July 2020
31 October 2020
30 December 2020
31 January 2020
P60s to employees
P11D and P11D(b) and copies to employees
Paper Self Assessment Tax Return (SATR)
SATR Online where outstanding tax (subject to cap) to be included in 2021/22 PAYE code
SATR Online
Corporation Tax
Year to 31.03.21 Rate is 19%
Value Added Tax
Standard rate
Reduced rate
Annual Registration Limit
Annual Deregistration Limit
2020/21
20%
5%
£85,000
£83,000