Tax Rates & Thresholds 2019/2020
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As we approach the busiest time of year in the financial calendar, we provide a reminder of the key rates and thresholds applicable to those working in England and Northern Ireland.
PAYE Tax Rates and Thresholds
| Employee personal allowance | £240 per week £1,042 per month £12,500 per year |
| Basic tax rate | 20% on annual earnings above the PAYE tax threshold and up to £37,500 |
| Higher tax rate | 40% on annual earnings from £37.500 to £150,000 |
| Additional tax rate | 45% on annual earnings above £150,000 |
INCOME LIMITS FOR TAPERING
The amount of gross income you can have before your personal allowance is reduced.
| Income Limit (Born after 5 April 1948) | £100,000 |
| Income Limit (Born before 6 April 1948) * | £29,600 |
Class 1 National Insurance Thresholds
You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL).
| LEL | £118 per week |
| Primary Threshold (PT) | £166 per week |
| Secondary Threshold (ST) | £166 per week |
| Upper Secondary Threshold (under 21) (UST) | £962 per week |
| Apprentice Upper Secondary Threshold (apprentice under 25) (AUST) | £962 per week |
| Upper Earnings Limit (UEL) | £962 per week |
Class 1 National Insurance Rates (Employee contribution rates)
These are deducted from an employee’s pay via PAYE.
| National Insurance category letter | Earnings at or above LEL up to and including PT | Earnings above the PT up to and including UEL | Balance of earnings above UEL |
| A | 0% | 12% | 2% |
| B | 0% | 5.85% | 2% |
| C | nil | nil | nil |
| H (Apprentice under 25) | 0% | 12% | 2% |
| J | 0% | 2% | 2% |
| M (under 21) | 0% | 12% | 2% |
| Z (under 21 – deferment) | 0% | 2% | 2% |
Class 1 National Insurance Rates (Employer contribution rates)
Paid to HMRC as part of your PAYE bill.
| National Insurance category letter | Earnings at or above LEL up to and including ST | Earnings above ST up to and including UEL/UST/AUST | Balance of earnings above UEL/UST/AUST |
| A | 0% | 13.80% | 13.80% |
| B | 0% | 13.80% | 13.80% |
| C | 0% | 13.80% | 13.80% |
| H (Apprentice under 25) | 0% | 0% | 13.80% |
| J | 0% | 13.80% | 13.80% |
| M (under 21) | 0% | 0% | 13.80% |
| Z (under 21 – deferment) | 0% | 0% | 13.80% |
Self Employed Class 2 and Class 4 NICs
| Class 4 Lower Profits Limit (Annual) | £8,632 |
| Class 4 Upper Profits Limit (Annual) | £50,000 |
| Class 4 Rate Between Lower and Upper Profits | 9% |
| Class 4 Rate Above Upper Profits | 2% |
| Class 2 Earnings Exception Limit | £6,365 |
| Class 2 Weekly Amount | £3.00 |
| Class 2 Weekly Amount (Share Fisherman) | £3.65 |
| Class 2 Weekly Amount (Volunteer Development Workers) | £5.90 |
DIVIDEND TAX BANDS AND PERCENTAGES
You only pay tax on dividends that go above your dividend allowance in the tax year. The allowance for 2019/2020 is £2,000.
| Band | Limits | Percentage |
| Basic Rate | £0 – £37,500 | 7.5% |
| Higher Rate | £37,501- £150,000 | 32.5% |
| Additional/Top Rate | Over £150,000 | 38.1% |
Corporation Tax Rates and Limits
| Main Rate | 19% |
Capital Gains Tax Rates and Annual Exempt Amounts
| Annual Exempt Amount – Individuals, Personal Reps and Trustees for Disable People | £12,000 |
| Annual Exempt Amount – Other Trustees | £6,000 |
| CGT Tax Rates | |
| Individuals – Basic Rate Taxpayer (Residential Property) | 18% |
| Individuals – Higher Rate Taxpayer (Residential Property) | 28% |
| Individuals – Basic Rate Taxpayer (Other Gains) | 10% |
| Individuals – Higher Rate Taxpayer (Other Gains) | 20% |
| Personal Representative of a Deceased Individual (Residential Property) | 28% |
| Personal Representative of a Deceased Individual (Other Gains) | 20% |
| Gains Qualifying for Entrepreneurs’ Relief | 10% |
Articles on this website are offered only for general informational and educational purposes. They are not offered as, and do not constitute, financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.
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Sources:
https://www.uktaxcalculators.co.uk/tax-rates/2019-2020/
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2019-to-2020#tax-thresholds-rates-and-codes
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