Income Tax allowances 2020/2021

Personal Tax Rates 2020/2021
Starting rate for savings income 0%
Starting rate limit (savings income) £5,000
Basic rate band 20% £0 – 37,500
Higher rate band 40% £37,501 – 150,000
Additional rate band 45% Over £150,000

Personal allowance £12,500

Income limit for personal allowance born after 05/04/1948 £100,000
Income limit for Married couple’s allowance born before 06/04/1948 £30,200
Married couple’s allowance £9,075
Transferable Tax Allowance for married couples and civil partners £1,250
Dividend allowance £2,000
Savings allowance-Basic Rate/Higher Rate £1,000/£500

National Insurance contribution thresholds 2020/2021
Weekly Lower Earnings Limit (LEL) £120
Weekly Primary Threshold (PT) £183
Weekly Secondary Threshold (ST) £169
Upper Earnings (UEL) £962
Small Profits Threshold (SPT) for class 2 nics £6,475(pa)
Lower Profits Limit (LPL) for class 4 nics £9,500 (pa)
Upper Profits Limit (UPL) for class 4 nics £50,000 (pa)

 

Capital Gains Tax*
Annual Exemption 2020/2021 £12,300
Standard rate/Residential standard rate 10%/18%
Higher rate/Residential higher rate 20%/28%
Entrepreneurs’ relief rate 10%

VAT Threshold from 1st April 2018

VAT threshold for Compulsory VAT Registration at £85,000 taxable sales in any 12 month period

CIS- Construction Industry Scheme
Standard rate CIS deductions are 20%, higher rate 30%

 *payment due within 30 days of the sale, completion or disposal