2019-20 Tax & National Insurance Rates
- 17 September 2019
- 0
2019-20 Personal Tax Allowances & Bands
| Allowance | % of income / £ allowance p.a. |
|---|---|
| Basic Rate Tax | 20% |
| Higher Rate Tax | 40% |
| Additional Rate Tax | 45% |
| Dividend Basic Rate | 7.5% |
| Dividend Higher Rate | 32.5% |
| Dividend Additional Rate | 38.1% |
| Basic Rate Tax Band | £12,500 to £50,000 |
| Higher Rate Tax Band | £50,000 to £150,000 |
| Additional Rate Tax Band | > £150,000 |
2019-20 UK Income Tax Rates
| Details | Rate |
|---|---|
| Personal Allowance | £12,500 |
| Limit for Personal Allowance | £100,000 – Personal Allowance reduced by £1 for every £2 above this limit |
| Marriage Allowance | £1,250 |
| Limit for Marriage Allowance | £29,600 – Marriage Allowance reduced by £1 for every £2 above this limit |
| Blind Person’s Allowance | £2,450 |
| Dividend Allowance | £2,000 |
2019-20 National Insurance Allowances
| Band | £ per week / annum |
|---|---|
| Lower Earnings Limit | £118 p/w |
| Primary Threshold (PT) | £166 p/w |
| Secondary Threshold (ST) | £166 p/w |
| Upper Earnings Limit (LEL) | £962 |
| Upper Profits Limit (UPL) | £50,000 |
| Upper Secondary Threshold for Under 21s | £962 |
| Small Profits Threshold (SPT) | £6,205 |
| Lower Profits Limit (LPL) | £8,632 |
| Employment Allowance | £3,000 per employer, per annum |
| Apprentice Upper Secondary Threshold (AUST) for U25s | £962 |
2019-20 National Insurance Rates
Class 1 – Employee Rates
| Earnings | % of Income |
|---|---|
| Below LEL : £118 | 0% |
| Between LEL and PT : £118 – £166 | 0% |
| Between PT and UEL : £166.01 – £962 | 12% |
| Above UEL : £962 | 2% |
Class 1 – Employer Rates
| Earnings | % of Income |
|---|---|
| Below ST : £166 | 0% |
| Above ST : £166 | 13.8% |
2019-20 Self-Employed National Insurance Contribution Rates (Class 2 & 4 NIC)
Two types of National Insurance rates apply for those in self-employment or partnership. Class 2 NIC rate applies for any earnings over £6,205 per annum and is payable for each week. Class 4 applies to profits for the whole year and has it’s own brackets:
| Band | Class 2 £ per week :: Class 4 NIC% of income |
|---|---|
| Below SPT : £6,365 | £0 :: 0% |
| Between SPT and LPL : £6,365 – £8,632 | £3.00 p/w :: 0% |
| Between LPL and UPL : £8,632- £50,000 | £3.00 p/w :: 9% |
| Above £50,000 | £3.00 p/w :: 2% |
2019-20 Corporation (Limited Company) Tax Rates
Corporation Tax rates are generally a lot lower than traditional self-employed UK Income Tax rates. That being said, recent changes to dividend Tax has made this a little more problematic. It maybe worth that you incorporate as a limited company but a detailed review of your Income Tax circumstances should be carried out whilst forecasting future activities.
That being said, Corporation Tax rates are set to be reduced to 17% by 2020. Until then, the rate is 19%
For advice on this matter it is advised that you contact QuickRebates for a free consultation to see how we can help your needs.
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