2019-20 Tax & National Insurance Rates

2019-20 Personal Tax Allowances & Bands

Allowance% of income / £ allowance p.a.
Basic Rate Tax20%
Higher Rate Tax40%
Additional Rate Tax45%
Dividend Basic Rate7.5%
Dividend Higher Rate32.5%
Dividend Additional Rate38.1%
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

DetailsRate
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 : £1180%
Between LEL and PT : £118 – £1660%
Between PT and UEL : £166.01 – £96212%
Above UEL : £9622%

Class 1 – Employer Rates

Earnings% of Income
Below ST : £1660%
Above ST : £16613.8%

 

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:

BandClass 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 £50,000£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.

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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