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Admin House, 6 North Street
Droitwich, Worcs, WR9 8JB
Telephones: 01905 770750
07598 403954
Emails: info@paulalton.co.uk
 
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Tax Card

Income Tax

Income Tax Rates: (England, Wales & NI)
2021-2022
%
2020-2021
%
2019-2020
%
2018-2019
%
Basic tax rate
20
20
20
20
Higher tax rate
40
40
40
40
Additional tax rate
45
45
45
45
Basic rate band (above personal allowance)
£0 -
£37,700
£0 -
£37,500
£0 -
£37,500
£0 -
£34,500
Higher rate band
£37,701 to £150,000
£37,501 to £150,000
£37,501 to £150,000
£34,501 to £150,000
Additional rate band
Over £150,000
Over £150,000
Over £150,000
Over £150,000

 

Income Tax Rates: Scotland
2021-2022
%
2020-2021
%
2019-2020
%
2018-2019
%
Starter tax rate
19
19
19
19
Basic tax rate
20
20
20
20
Intermediate tax rate
21
21
11
21
Higher tax rate
41
41
41
41
Top tax rate
46
46
46
46
Starter tax rate band (above personal allowance)
£0 -
£2,097
£0 -
£2,085
£0 -
£2,049
£0 -
£2.000
Basic tax rate band
£2,098 -
£12.726
£2,086 -
£12,658
£2,049 -
£12,444
£2,000 -
£12,150
Intermediate tax rate band
£12,727
£31,092
£12,659 -
£30,930
£12,445 -
£30,930
£12,150 -
£31,580
Higher rate band
£31,093 to £150,000
£30,931 to £150,000
£30,931 to £150,000
£31.580 to £150,000
Top tax rate band
Over £150,000
Over £150,000
Over £150,000
Over £150,000

 

Income on Savings: Restricted to other income of less than £17,500
2021-2022
%
2020-2021
%
2019-2020
%
2018-2019
%
Starting rate for savings
0
0
0
0
Starting rate band for savings
£0 -
£5,000
£0 -
£5,000
£0 -
£5,000
£0 -
£5,000

 

Income on Dividends:
2021-2022
%
2020-2021
%
2019-2020
%
2018-2019
%
Allowance for tax-free dividends
£2,000
£2,000
£2,000
£2,000
Tax on dividends at Basic Effective Rate
7.5
7.5
7.5
7.5
Tax on dividends at Higher Effective Rate
32.5
32.5
32.5
32.5
Tax on dividends at Additional Effective Rate
38.1
38.1
38.1
38.1

Personal Allowances

Personal allowances
2021-2022
 
2020-2021
 
2019-2020
 
2018-2019
 
Standard payroll tax code
1257L
1250L
1250L
1185L
Personal allowance (1)
£12,570
£12,500
£12,500
£11,850
Income limit for Personal Allowance
£100,0000
£100,0000
£100,0000
£100,0000
Marriage Allowance (Tfrs between couples)
£1,250
£1,250
£1,250
£1,250
Marriage Allowance: To benefit - Lower earner's limit
£12,500
£12,500
£12,500
£11,850
Max Married Couples Allowance (2)
£9,075
£9,075
£8,915
£8,445
Min Married Couples Allowance (2)
£3,510
£3,510
£3,450
£3,260
Income limit for Married Couples Allowance (2)
£30,200
£30,200
£29,600
£28,800
Blind person's allowance
£2,500
£2,500
£2,450
£2,390
Dividend allowance (3)
£2,000
£2,000
£2,000
£2,000
Personal Savings Allowance (Basic Rate Taxpayer)
£1,000
£1,000
£1,000
£1,000
Personal Savings Allowance (Higher Rat Taxpayer)
£500
£500
£500
£500
Individual Saving Account (ISA) - Overall annual limit
£20,000
£20,000
£20,000
£20,000
Individual Saving Account (ISA) - Junior account limit
£9,000
£9,000
£4,368
£4,260
Personal Annual Pension Allowance 100% of salary up to:
£40,000
£40,000
£40,000
£40,000
Permitted pension contributions (irrespective of salary)
£4,000
£4,000
£4,000
£3,600
 
Note 1: Where income is above £100,000 the Personal Allowance reduces by £1 for every £2 of income above the £100,000 limit. It can go down to zero. This reduction applies to all people irrespective of age or date of birth.
Note 2: The Married Couples allowances applies to those born before 6 April 1935. The allowance reduces by £1 for every £2 of income above the specified income limit of £27,700, but never falls below the minimum amount specified above. Tax relief for the Married Couples Allowance is given at 10%.
Note 3: From April 2016, the dividend tax credit system was withdrawn. Instead, individuals will be given an annual tax-free allowance.
 
State Pension (from 6th April)
2021-2022
 
2020-2021
 
2018-2019
 
2017-2018
 
Old State Pension - Single allowance
£137.65
£134.25
£129.20
£122.30
New State Pension (applies to those reaching retirement age after 5 April 2016)
£179.60
£175.20
£168.60
£159.55

Key Dates

Key dates in 2021/22 for personal Self Assessment tax payers
31 January 2022 Deadline for submitting online your 2020/2021 self assessment tax return. It is also the date by which the tax payer will be required to settle the 2020/2021 balancing payment and make the first payment on account in respect of 2021/2022.
31 July 2021 The date by which the second payment on account in respect of 2020/2021 must be paid. Consider reducing POA's if last year's income has dropped.
5 October 2021 Deadline for notifying HMRC of new sources of income unless a 2020/2021 tax return has already been issued. Complete form CWF1 for self employment, form SA1 for non self-employed income, or form SA401 for partners.
31 October 2021 Deadline for submission to HMRC of a paper tax return for 2020/2021.
30 December 2021 Deadline for e-filing the tax return where the tax payer requires the 2020/20210 balancing payment to be collected through next year’s tax code (less than £2,000).

Capital Gains Tax

Capital Gains Tax
2021-2022
£
2020-2021
£
2019-2020
£
2018-2019
£
Annual exempt amount:
 
 
 
 
 - Individuals etc
£12,300
£12,300
£12,000
£11,700
 - Other Trustee
£6,150
£6,150
£6,000
£5,850
 - Taxed at Standard Rate
10%
10%
10%
10%
 - Taxed at Higher Rate
20%
20%
20%
20%

From 5 April 2016, certain residential properties may attract a higher rate of capital gains tax.
Entrepreneur's Relief available at 10% with a lifetime limit of £1m from 11-03-2020 (Previously £10m).

Inheritance Tax

Inheritance Tax
2021-22
£
2020-21
£
2019-20
£
2018-19
£
 No tax charge arises up to:
£325,000
£325,000
£325,000
£325,000
Taxed above £325,000 at:
40%
40%
40%
40%
Lifetime transfers to most trusts:
20%
20%
20%
20%
Main exempt lifetime gifts
 
 
 
 
Small gifts (per recipient):
£250
£250
£250
£250
Parent's gift on marriage:
£5,000
£5,000
£5,000
£5,000
Grandparent's gift on marriage:
£2,500
£2,500
£2,500
£2,500
Gifts (per donor):
£3,000
£3,000
£3,000
£3,000

Each individual has a tax-free gift allowance of £3,000 per annum. This means that a donor can give £3,000 in any one tax year without tax implications. Anything larger than £3,000 will be considered a ‘Potentially Exempt Transfer’ (PET) and may be subject to inheritance tax should the donor fail to survive seven years from the date the gift is made.

Tapering relief is given in respect of gifts made between three and seven years before death.
The main 40% IHT rate is reduced to 36% if at least 10% of relevant estate is left to charity.

Stamp Duty

Residential Property Stamp Duty
England & NI
SDLT
Scotland
LBTT
Wales
LTT
  £1 - £125,000
Nil
Nil
Nil
  £125,000 - £145,000
2%
Nil
Nil
  £145.000 - £180,000
2%
2%
Nil
  £180,000 - £250,000
2%
2%
3.5%
  £250,000 - £325,000
5%
5%
5%
  £325,000 - £400,000
5%
10%
5%
  £400,000 - £750,000
5%
10%
7.50%
  £750,000 - £925,000
5%
12%
10%
  £925,000 - £1.5m
10%
12%
10%
  Above £1.5m
12%
12%
12%

Coronavirus Crisis: Temporary Concessions

The Nil rate has been extended to £500,000 until 30 June 2021 in England and Northern Ireland, falling to £250,000 until 30 September 2021.

In England and Northern Ireland there is a 3% supplentary charge for a second house. It is 4% for Wales and Scotland.

First time buyer exemption from SDLT for purchases up to £300,000 and for the first £300,000 of purchases up to £500,000. First time buyer relief from LBTT for the first £175,000 of relevant property purchases.

National Insurance Contributions

National Insurance
Class 1
2021-2022
£
2020-2021
£
2019-2020
£
Class 1
Men over 65, Women over 60, and children under 16 do not pay Class 1 contributions.
 
 
 
Employee's Earnings Limits
Weekly - Monthly - Yearly
Weekly - Monthly - Yearly
Weekly - Monthly - Yearly
- Lower earnings limit (LEL)
The minimum level of earnings employees need to qualify for benefit including State Pension.
£120 - £520 - £6,240
£120 - £520 - £6,240
£118 - £512 - £6,136
- Primary threshold (PT)
The level of earnings above which employees Class 1 contributions become payable.
£184 - £797 - £9,568
£183 - £792 - £9,500
£166 - £719 - £8,632
- Secondary threshold (ST)
The level of earnings above which employers Class 1 contributions become payable.
£170 - £737 - £8,840
£169 - £732 - £8,788
£166 - £719 - £8,632
- Upper earnings limit (UEL)
Employees do not pay Class 1 contributions above this level.
£967 - £4,189 - £50,270
£962 - £4,167 - £50,024
£962 - £4,167 - £50,024
 
Employer's Allowance
£4,000
£4,000
£3,000
 
Employee's Class 1 NI rates
 
 
 
- Primary rate from PT to UEL
12%
12%
12%
- Above UEL
2%
2%
2%
 
Employer's Class 1 NI rates
 
 
 
- Primary rate above ST
13.8%
13.8%
13.8%
 
Employer's Class 1A NI rates on B-I-K
13.8%
13.8%
13.8%

National Insurance Class 2
2021-2022
£
2020-2021
£
2019-2020
£
2018-2019
£
Self-employed National Insurance
 
 
 
 
- on annual earnings over
£6,515
£6,475
£6,365
£6,205
- weekly contribution
£3.05
£3.05
£3.00
£2.95
- maximum annual contribution
£158.60
£158.60
£156.00
£153.40

National Insurance Class 3
2021-2022
£
2020-2021
£
2019-2020
£
2018-2019
£
Voluntary contributions:
 
 
 
 
- weekly contribution
£15.40
£15.30
£15.00
£14.65
- annual contribution
£800.80
£795.60
£780.00
£761.80

National Insurance Class 4
2021-2022
£
2020-2021
£
2019-2020
£
2018-2019
£
Self-employed National Insurance on taxable profits between:
 
 
 
 
- Lower limit (LL)
£9,568
£9,500
£8,632
£8,424
- Upper limit (UL)
£50,270
£50,000
£50,000
£46,350
- Rate applied to earnings above LL to UL
9%
9%
9%
9%
- Rate applied to earnings above UL
2%
2%
2%
2%
- Maximum payable
£3,663 + 2%
£3,645 + 2%
£3,723.12 + 2%
£3,413.34 + 2%

The Authorised Mileage Rates

Mileage Rates to be used for privately owned vehicles from 6 April 2011
First 10,000 miles
Above 10,000 miles
  Cars and vans
45p
25p
  Motorcycles
24p
24p
  Cycles
20p
20p

Compulsory registration for VAT

VAT thresholds and limits
Registration
threshold
Deregistration
limit
 from 1 April 2017
£85,000
£83,000
 01.04.16 to 31.03.17
£83,000
£81,000
 01.04.15 to 31.03.16
£82,000
£80,000
 01.04.14 to 31.03.15
£81,000
£79,000
 01.04.13 to 31.03.14
£79,000
£77,000
 01.04.12 to 31.03.13
£77,000
£75,000
 01.04.11 to 31.03.12
£73,000
£71,000

Van Benefits

Van Benefits
2020-2021
2019-2020
2018-2019
2017-2018
         
Van benefit
£3,490
£3,430
£3,350
£3,230
Zero-emission van benefit
£2,792
£2,058
£1,340
 
Fuel benefit
£666
£655
£633
£610

Corporation Tax

Corporation Tax
From 01-04-20
£
From 01-04-19
£
From 01-04-18
£
From 01-04-17
£
Main rate:
19%
19%
19%
20%
Loans to participators
32.5%
32.5%
32.5%
32.5%
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