Please use the menu below to view the current tax rates. If you have any questions, you can call on 01234 888703 or send us a message here.
|Personal Allowance (PA) *||£12,570||£12,500|
|Marriage Allowance †||£1,260||£1,250|
|Blind Person's Allowance||£2,500||£2,500|
|Rent a room relief**||£7,500||£7,500|
* PA is withdrawn at £1 for every £2 by which 'adjusted income' exceeds £100,000. There is no allowance above £125,140.
†The part of the PA that is transferable to a spouse or civil partner who is not a higher or additional rate tax payer.
**If gross income exceeds this, the limit may be deducted instead of actual expenses.
|Basic Rate Band (BRB)||£37,700||£37,500|
|Higher Rate Band (HRB)||37,701-150,000||37,501-150,000|
|Additional rate||over £150,000||over £150,000|
|Personal Savings Allowance (PSA)|
|- Basic rate taxpayer||£1,000||£1,000|
|- Higher rate taxpayer||£500||£500|
|Dividend Allowance (DA)||£2,000||£2,000|
BRB and additional rate threshold are increased by personal pension contributions (up to permitted limit) and Gift Aid donations.
|Tax rates||2021/22 & 2020/21|
|Rates differ for General/Savings/Dividend income||G||S||D|
General income (salary, pensions, business profit, rent) usually uses personal allowance, basic and higher rate bands before savings income (interest). Scottish taxpayers are taxed at different rates on general income (see below).
To the extent that savings income falls in the first £5,000 of the basic rate band, it is taxed at nil rather than 20%.
The PSA taxes interest at nil where it would otherwise be taxable at 20% or 40%.
Dividends are normally taxed as the 'top slice' of income. The DA taxes the first £2,000 of dividend income at nil, rather than the rate that would otherwise apply.
|Income tax - Scotland||2021/22||2020/21|
|Basic Rate||20%||2,098 - 12,726||2,086 - 12,658|
|Intermediate Rate||21%||12,727 - 31,092||12,659 - 30,930|
|Higher Rate||41%||31,093 - 150,000||30,931 - 150,000|
|Top Rate||46%||over 150,000||150,000|
The Scottish rates and bands do not apply for savings and dividend income, which are taxed at normal UK rates.
High Income Child Benefit Charge (HICBC
1% of child benefit for each £100 of adjusted net income between £50,000 and £60,000.
|Remittance basis charge||2021/22||2020/21|
|For non-UK domiciled individuals who have been UK resident in at least:|
|7 of the preceding 9 tax years||£30,000||£30,000|
|12 of the preceding 14 tax years||£60,000||£60,000|
|15 of the preceding 20 tax years||Deemed to be UK domiciled.|
|Lifetime allowance (LA)||£1,073,100||£1,073,100|
|Annual allowance (AA) *||40,000||40,000|
Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600
* Usually tapered (down to a minimum of £4,000) when adjusted income exceeds £240,000.
|State pension (per week)||2021/22||2020/21|
|Old state pension - Single person||£137.60||£134.25|
|Old state pension - Married couple||£220.05||£214.70|
|New state pension §||£179.60||£175.20|
§ Applies to those reaching state retirement age after 5 April 2016.
|Individual Savings Account (ISA)|
|- Overall limit||£20,000||£20,000|
|- Lifetime ISA||£4,000||£4,000|
|EIS - 30% relief||£2,000,000||£2,000,000|
|Seed EIS (SEIS) - 50% relief||£100,000||£100,000|
|Venture Capital Trust (VCT) - 30% relief||£200,000||£200,000|
|Class 1 (employees)||Employee||Employer|
|Main NIC rate||12.0%||13.8%|
|No NIC on first||£184pw||£170pw|
|Main rate* charged up to||£967pw||no limit|
|2% rate on earnings above||£967pw||N/A|
|Employment allowance per business**||N/A||£4,000|
* Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £967pw.
** Some businesses do not qualify, including some sole director companies and employers who have an employer's Class 1 NIC liability of £100,000 or more for 2020/21.
Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee's behalf under a PAYE settlement agreement (Class 1B).
Class 2 (Self-employed)
|Flat rate per week||£3.05|
|Small profits threshold||£6,515|
Class 3 (Voluntary)
|Class 3: Flat rate per week||£15.40|
|Class 3A: Contributions vary with age|
Class 4 (Self-employed)
|On profits £9,568 to £50,270||9%|
|On profits over £50,270||2%|
Taxable benefit: List price of car multiplied by chargeable percentage.
|2021/22 chargeable percentage for petrol cars first registered|
|CO2 g/km *||Electric Range Miles||Pre 6.04.2020 %||Post 5.04.2020 %|
Then a further 1% for each 5g/km CO2 emissions, up to a maximum of 37%.
Diesel cars that are not RDE2 standard suffer a 4% supplement on the above figures but are still capped at 37%.
Chargeable value of £3,500 (2020/21 £3,490) if private use is more than home-to-work. Zero-emission vans charged at £Nil (2020/21 £2,792).
Employer provides fuel for private motoring in an employer-owned:
Car: CO2-based percentage from above table multiplied by £24,600 (2020/21 £24,500).
Van: £669 (2020/21 £666).
Employee contributions do not reduce taxable figure unless all private fuel is paid for by the employee (in which case there is no benefit charge).
|Employee's own transport||per business mile|
|Cars first 10,000 miles||45p|
|Cars over 10,000 miles||25p|
|Annual exempt amount||2021/22||2020/21|
|Individual (to basic rate limit)*||10%||10%|
|Individual (above basic rate limit)*||20%||20%|
|Business Asset Disposal Relief (BADR)**||10%||10%|
|Investor' Relief (IR)***||10%||10%|
* Individuals are taxed at 18%/28% on gains on residential property and receipts of carried interest. Trusts and estates are taxed at 28% in these circumstances.
** BADR was called Entrepeneurs Relief prior to 6 April 2020. It is available for qualifying gains of up to £1m.
*** Shares in an unquoted trading company may be qualify on lifetime gains up to £10m. Various conditions apply.
|Corporation tax rate||19%||19%|
|Research and development relief SME enhanced expenditure deduction scheme*||130%||130%|
|Large company R&D expenditure credit (RDEC) scheme**||13%||13%|
* Additional deduction for qualifying R&D.
** Taxable expenditure credit for qualifying R&D.
SMEs that make losses can surrender the deduction to HMRC in exchange for a payment of 14.5% of the loss (capped at £20,000 plus 3 x PAYE & NIC for periods beginning from 1.4.21).
|Plant and machinery allowances||Rate|
|Expenditure 1.4.21 - 31.3.23 (companies only)|
|- Super deduction (main pool expenditure)||130%|
|- First-year allowance (special rate pool expenditure)||50%|
|Annual Investment Allowance (AIA)|
|- expenditure 1.1.19 - 31.12.21 (companies only)||£1,000,000||100%|
|- expenditure from 1.1.22||200,000||100%|
|New electric vans||100%|
|Writing down allowance: general pool (reducing balance)||18%|
|Writing down allowance: special rate pool (reducing balance)||6%|
Motor cars purchased
|New cars only||Nil||Up to 50||100%|
|In general pool||Up to 50||Up to 110||18%|
|In special rate pool||Above 50||Above 110||6%|
* 8% pre 1.4.19 (companies) and pre 6.4.19 (businesses subject to income tax).
|Structures and buildings allowance|
|Fixed deduction per annum||3%|
Annual Tax on Enveloped Dwellings (ATED)
ATED applies to 'high value' residential properties owned via a corporate structure, unless the property is used for a qualifying purpose. The tax applies to properties valued at more than £500,000.
|Property value||Annual charge to|
|£0.5m - £1m||£3,700||£3,700|
|£1m - £2m||£7,500||£7,500|
|£2m - £5m||£25,300||£25,200|
|£5m - £10m||£59,100||£58,850|
|£10m - £20m||£118,600||£118,050|
Stamp Duty Land Tax (SDLT) and Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) from 1 April 2021.
Residential property (1st property only)
* Nil rate band up to 30.6.21 is £500,000 between 1.7.21 - 30.9.21 is £250,000.
** Nil rate band up to 30.6.21 is £250,000.
A supplement applies for all three taxes where an additional residential property is purchased for more than £40,000 (unless replacing a main residence) It is also payable by all corporate purchasers. The rate is 3% (LBTT and LTT: 4%) of the total purchase price.
- From 1.7.21, first-time buyers purchasing a property of up to £500,000 pay a nil rate on the first £300,000 of purchase price.
- A 2% supplement applies where the property is bought by a non-UK resident.
- A rate of 15% may apply to the total purchase price where the property is valued above £500,000 and purchased by a 'non-natural person' (e.g. a company).
For LBTT, first time buyers relief increases the nil rate band to £175,000.
Non residential or mixed use property
|Standard rate (1/6 of VAT-inclusive price)||20%|
|Tourism and hospitality sector reduced rate|
|- up to 30.9.21||5.0%|
|- from 1.10.21 to 31.3.22||12.5%|
|Registration level from 1.4.2017||£85,000 per annum|
|Deregistration level from 1.4.2017||£83,000 per annum|
Flat rate scheme (FRS)
|Annual taxable turnover to enter scheme||Up to £150,000|
|Must leave scheme if annual taxable turnover||Exceeds £230,000|
If using FRS, the VAT paid by the business is a fixed percentage (based on business category) of "FRS Turnover" rather than the net of output tax over input tax. Input tax is usually not recoverable.
Cash accounting and annual accounting schemes
|Annual taxable turnover to enter scheme||Up to £1.35m|
|Must leave scheme if annual taxable turnover||Exceeds £1.60m|
|Nil rate band (NRB)*||£325,000||£325,000|
|NRB Residential Enhancement (RNRB) †*||£175,000||£175,000|
|Tax rate on death**||40%||40%|
|Tax rate on lifetime transfers to most trusts||20%||20%|
* Up to 100% of the proportion of a deceased spouse's/civil partner's unused NRB and RNRB band may be claimed to increment the current NRB and RNRB when the survivor dies.
† RNRB is available for transfers of a main residence to (broadly) direct descendents. It tapers away at the rate of £1 for every £2 of estate value above £2m.
** Rate reduced to 36% if at least 10% of the relevant estate is left to charity. Unlimited exemption for transfers between spouses/civil partners, except if UK domiciled transferor and foreign domiciled transferee, where maximum exemption £325,000.
Unlimited excemption for transfers between spouses/civil partners, except if UK domiciled transferor and foreign domiciled transferee, where maximum exemption £325,000.
100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying incorporated trading businesses and certain farmland/buildings.
Reduced tax charge on gifts within 7 years before death
|Years before death||0 - 3||3 - 4||4 - 5||5 - 6||6 - 7|
|% of full death tax charge payable||100||80||60||40||20|
Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient.
|1st payment on account||31 January||2022||2021|
|2nd payment on account||31 July||2022||2021|
|Balancing payment||31 January||2023||2022|
|Capital gains tax*||31 January||2023||2022|
* UK residential property: CGT due within 30 days of completion.
Other payment dates
|Class 1A NIC||19 July||2022||2021|
|Class 1B NIC||19 October||2022||2021|
Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a 'large' company paying by quarterly instalments.
2020/21 Filing deadlines
|Issue P60s to employees||31 May||2021|
|P11D, P11d)b)||6 July||2021|
|Self assessment tax return (SATR) paper version||31 October||2021|
|Online SATR if outstanding tax to be included in 2022/23 PAYE code (if under £3000)||30 December||2021|
|Online SATR||31 January||2022|
Non-resident CGT return is due within 30 days of completion of sale of UK land and buildings by a non-resident.
|National Minimum Wage||From||From|
|Rates per hour||1.04.21||1.04.20|
|Aged 23 and over (National Living Wage)||£8.91||£8.72|
|Aged 23 - 24||N/A||£8.20|
|Aged 21 -22||£8.36||£8.20|
|Aged 18 -20||£6.56||£6.45|
|Aged 16 -17||£4.62||£4.55|
You are advised to consult us before acting on any information contained herein.
Contact Cox & Co Accountants today on 01234 888703 or 01908 854447 and recieve a free consultation! Our friendly staff are always available to help.
You can also contact us by completing our contact form.