Tax Rates and Allowances for the Self Employed

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Key Tax Rates for the UK

Below is a list of the Key tax rates and personal allowances for the self employed.

There are plenty that have not been included in here such as dividend tax, tax on interest, corporation tax etc, but this will get you started. If you want to check out the official HMRC rates, then please go to >>> https://www.gov.uk/income-tax-rates

 

Main tax rates & allowances
2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022
Personal Allowance £11,000 £11,500 £11,850 £12,500 £12,500 £12,570
Personal allowance reduces once taxable income is above £100,000
Marriage allowance £1,100 £1,150 £1,185 £1,250 £1,250 £1,257
10% personal allowance can be transferred between certain spouses where neither pay tax above the basic rate
Income Tax Rates – After personal allowance
Band £
0 to £37,700 20%
£37701 to £150,000 40%
Over £150,000 45%
Band £
0 to £37,500 20% 20%
£37501 to £150,000 40% 40%
Over £150,000 45% 45%
Band £
0 to £34,500 20%
£34,501 to £150,000 40%
Over £150,000 45%
Band £
0 to £33,500 20%
£33,501 to £150,000 40%
Over £150,000 45%
Band £
0 to £32,000 20%
£32,001 to £150,000 40%
Over £150,000 45%
National Insurance
Class 1 12% 12% 12% 12% 12% 12%
Class 2 £145.60 £148.20 £153.40 £156.00 £158.60 £158.60
Class 2 – Small profits £5,965.00 £6,025.00 £6,205.00 £6,365.00 £6,475.00 £6,515.00
Class 3 (per week) £14.10 £14.25 £14.65 £15.00 £15.30 £15.40
Class 4 – lower 9% 9% 9% 9% 9% 9%
Class 4 – upper 2% 2% 2% 2% 2% 2%
Class 4 – Lower Threshold £8,060.00 £9,164.00 £8,424.00 £8,632.00 £9,500.00 £9,568.00
Class 4 – Upper Threshold £43,000.00 £45,000.00 £46,350.00 £50,000.00 £50,000.00 £50,270.00
Income Tax Rates – Scotland only – After personal allowance
Band £
0 to £2,097 19%
£2,098 to £12,726 20%
£12,727 to £31,092 21%
£31,092 to £150,000 41%
Over £150,000 46%
Band £
0 to £2,085 19%
£2,086 to £12,658 20%
£12,659 to £30,930 21%
£30,931 to £150,000 40%
Over £150,000 46%
Band £
0 to £2,049 19%
£2,050 to £12,444 20%
£12,445 to £30,930 21%
£30931 to £150,000 40%
Over £150,000 46%
Band £
0 to £2,000 19%
£2,000 to £12,150 20%
£12,515 to £31,580 21%
£31,581 to £150,000 40%
Over £150,000 46%
Band £
0 to £31,500 20%
£31,501 to £150,000 40%
Over £150,000 45%
Band £
0 to £32,000 20%
£32,001 to £150,000 40%
Over £150,000 45%

 

 

VAT thresholds from:
1st April 2013 £79,000
1st April 2014 £81,000
1st April 2015 £82,000
1st April 2016 £83,000
1st April 2017 £85,000
1st April 2018 £85,000
until 31st March 2024 £85,000

 

Corporation Tax Rates from:
1st April 2016 20%
1st April 2017 19%
1st April 2018 19%
1st April 2019 19%
1st April 2020 – onwards until April 2023 when it depends on profits 19%

 

Student Loan repayments Plan 1 Plan 2 Post Grad
Threshold Threshold Threshold
Tax year 2016/17 £17,495 £21,000
Tax year 2017/18 £17,775 £21,000
Tax year 2018/19 £18,330 £25,000
Tax year 2019/20 £18,935 £25,725 £21,000
Tax year 2020/21 £19,390 £26,575 £21,000
Tax year 2021/22 £19,895 £27,295 £21,000
Repayment rate 9% 9% 6%