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Tax Rates, Bands & Allowances

On this page you will find below details of the most common types of tax rates, bands and allowances for the 2019/20 and 2020/21 tax years. If the particular type of tax you are interested in is not covered by the information given below please contact us and we will try to help. On certain internet browsers the figures shown in the table may not be aligned to the column headings. If you are experiencing this problem and are having difficulty in reading the table as a result please try again using a different browser.

Please note that since 6 April 2018 separate rates of Income Tax apply in Scotland. These are not shown below. If you would like more information about this please contact us.

Income Tax – Allowances

2019/20 2020/21
Personal Allowance £12,500 £12,500
Minimum Married Couples Allowance – people born before 6 April 1935 £3,450 £3,510
Maximum Married Couples Allowance – people born before 6 April 1935 £8,915 £9,075
Income Limit for Personal Allowances £100,000 £100,000
Blind Persons Allowance £2,450 £2,500
Marriage Allowance £1,250 £1,250
Dividend Allowance £2,000 £2,000
Savings Allowance (Basic Rate Taxpayers) £1,000 £1,000
Savings Allowance (Higher Rate Taxpayers) £500 £500

Income Tax – Rates and Bands

2019/20 2020/21
Basic Rate 20% 20%
Higher Rate 40% 40%
Additional Rate 45% 45%
Upper Limit for Basic Rate £50,000 £50,000
Upper Limit for Higher Rate £150,000 £150,000

 National Insurance – Employees and Employers

2019/20 2020/21
Weekly Lower Earnings Limit (LEL) £118  £120
 Employers Threshold (ERT) £166  £169
 Employees Threshold (EET)  £166  £183
 Upper Earnings Limit (UEL)  £962  £962
 Employer Rate – Below ERT  0.0%  0.0%
 Employer Rate – Above ERT 13.8%  13.8%
 Employee Rate – Below EET  0.0%  0.0%
 Employee Rate – EET to UEL 12.0% 12.0%
 Employee Rate – Above UEL  2.0%  2.0%

National Insurance – Self Employed

2019/20 2020/21
Weekly Class 2 Contribution Rate £3.00 £3.05
Class 2 Small Earnings Exception per year £6,365 £6,475
Class 4 Lower Profits Limit (LPL) £8,632 £9,500
Class 4 Upper Profits Limit (UPL) £50,000 £50,000
Class 4 Rate LPL to UPL 9.0% 9.0%
Class 4 Rate above UPL 2.0% 2.0%

Capital Gains and Property

2019/20 2020/21
Capital Gains Annual Allowance £12,000  £12,300
Capital Gains Tax Rate for Basic Rate Taxpayers 18.0% 18.0%
Capital Gains Tax Rate for Higher Rate Taxpayers 28.0% 28.0%
Rent a Room Allowance £7,500 £7,500

Business Taxes

2019/20 2020/21
Value Added Tax (VAT) Registration Threshold £85,000 £85,000
Corporation Tax Rate for Companies 19% 19%


Our clients have said:

“An excellent low cost accounting service for small companies. I would have no hesitation in recommending this service for small enterprises.”

— JF, IT Consultant, London SE23

Get in Touch

If you have any questions or enquiries regarding our services, please feel free to get in contact with us using the details below:

Telephone: 020 7732 8760

Fax: 020 7732 8760

Mobile: 07960 908117

Alternatively please detail your query on our contact form or contact us by e-mail at email@faithinfinance.com

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