2019-20 Tax & National Insurance Rates

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 (UEL) £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 £2.95 p/w :: 0%
Between LPL and UPL : £8,632- £50,000 £2.95 p/w :: 9%
Above £46,350 £2.95 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.

Corporation Tax rates are currently 19% and will be for the foreseeable future.

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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