tax rates 2020/2021
www.scruttonbland.co.uk
Income Tax
Rates and bands (other than savings and dividend income) 2020/21 2019/20 Band £ Rate % Band £ 45 Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved. Savings income 2020/21 and 2019/20 Savings allowance basic rate £1,000 Savings allowance higher rate £500 A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000. Dividend income 2020/21 and 2019/20 Dividend allowance £2,000 Dividend ordinary rate 7.5% Dividend upper rate 32.5% Dividend additional rate 38.1% Rate % 0 - 37,500 37,501 - 150,000 Over 150,000 20 40 45 0 - 37,500 37,501 - 150,000 Over 150,000 20 40
Income Tax Reliefs
2020/21 2019/20 £100,000 £100,000
Personal allowance Personal allowance income limit Marriage allowance Married couple’s allowance
£12,500 £1,250 £9,075 £3,510 £30,200 £2,500
£12,500 £1,250 £8,915 £3,450 £29,600 £2,450
- minimum amount - income limit
Blind person’s allowance
Individual Savings Accounts
2020/21 2019/20
Overall investment limit Junior account investment limit
£20,000 £9,000
£20,000 £4,368
Car, Van and Fuel Benefits
Cars registered pre 6.4.20 % of list price taxed
Cars registered after 5.4.20 % of list price taxed
2020/21
emissions g/km
CO 2
0
0 2 5 8
0 0 3 6
1-50 Electric range - 130 or more
70 - 129 40 - 69 30 - 39 under 30
12 14 15 +1 37 n/a
10 12 13 +1 n/a
51-54
For every extra 5 160 and above 170 and above
37 For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO 2 figure does not end in a 5 or 0 round down to the nearest 5 or 0. 2020/21 Car fuel benefit £24,500 Van benefit £3,490 Van fuel benefit £666
National Insurance
2020/21 Class 1 (employed) rates Employee Employer Earnings per week % Earnings per week
% Nil
Up to £183 £183.01 - £962 Over £962
Nil Up to £169 12 Over £169
13.8
2 Entitlement to contribution-based benefits for employees retained for earnings between £120 and £183 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 per week. 13.8% on employee taxable benefits 13.8% on PAYE Settlement Agreements small profits threshold £6,475 per annum Class 2 (self-employed) flat rate per week £3.05 flat rate per week £15.30 Class 4 (self-employed) 9% on profits between £9,500 and Class 3 (voluntary) £50,000 plus 2% on profits over £50,000 Class 1A (employers) Class 1B (employers)
Stamp Duty Land Tax
Land and buildings in England and N. Ireland Residential rates may be increased by 3% where further residential properties are acquired. Residential £ Rate % Non-residential £ Rate % 0 - 125,000 0 0 - 150,000 0 125,001 - 250,000 2 150,001 - 250,000 2 250,001 - 925,000 5 Over 250,000 5 925,001 - 1,500,000 10 Over 1,500,000 12 First-Time Buyer relief may apply to residential purchases up to £500,000.
Capital Gains Tax
Individuals Exemption Standard rate
2020/21 2019/20
£12,300 10% 20% £6,150 20%
£12,000 10% 20% £6,000
Higher/additional rate
Trusts Exemption
Rate 20% Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest. Entrepreneurs’ Relief The first £10m of qualifying gains are charged at 10%. This is reduced to £1m for disposals on or after 11 March 2020 subject to certain transitional rules.
Death rate Lifetime rate Inheritance Tax
Chargeable transfers 2020/21 and 2019/20 0 - £325,000 (nil rate band)
Nil 40%
Nil 20%
Over £325,000 A further nil rate band of £175,000 (£150,000 for 2019/20) may be available in relation to current or former residences.
Corporation Tax
Rate %
Rate %
Year to 31.3.21
19 Year to 31.3.20
19
Different rates apply for ring-fenced (broadly oil industry) profit.
Capital Allowances
First Year Allowance (FYA) on certain plant, machinery and cars up to 50g/km Annual Investment Allowance (AIA) £1,000,000 (£200,000 from 1 January 2021) Excludes cars and expenditure already qualifying for FYA Writing Down Allowance Expenditure not qualifying for AIA or FYA: Long-life assets, integral features of buildings, cars over 110g/km
100%
6%
18%
Other plant and machinery
3%
Structures and Buildings Allowance From April 2020
Pensions
2020/21 2019/20 £1,073,100 £1,055,000
Lifetime Allowance limit Annual Allowance limit
£40,000
£40,000 £4,000
Money Purchase Annual Allowance £4,000
Value Added Tax
From 1.4.20 From 1.4.19
Standard rate Reduced rate
20% 5%
20% 5%
Annual Registration Limit Annual Deregistration Limit
£85,000 £83,000
£85,000 £83,000
Disclaimer: Rates are for guidance only. No responsibility for loss occasioned by any person acting/ refraining from action as a result of this information can be accepted by the authors or firm.
Weekly benefit Basic State Pension New State Pension Selected Rates Statutory pay standard rates
2020/21 2019/20
£
£
134.25 175.20
129.20 168.60
- average weekly earnings £120 (£118) or over
Sick Pay
95.85 151.20 151.20 151.20
94.25 148.68 148.68 148.68
Maternity/Adoption Pay Shared Parental Pay Paternity Pay
National Living Wage and National Minimum Wage Age NLW 21-24 18-20 16-17 Apprentices From 1 April 2020 £8.72 £8.20 £6.45 £4.55 £4.15 Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 25 and over.
Key Dates and Deadlines Payment Dates Income Tax and Class 4 NIC 1st payment on account 31 January 2nd payment on account 31 July
2020/21 2019/20
2021 2021 2022 2022 2022 2021
2020 2020 2021 2021 2021
Balancing payment Capital Gains Tax Class 1A NIC Class 2 NIC
31 January 31 January 31 January 19 July
2020 Corporation Tax – 9 months and one day after the end of accounting period (quarterly instalments if large company) 6 July 2020 - P11D and P11D(b) and copies to employees 31 October 2020 - paper Self Assessment Tax Return (SATR) 30 December 2020 - SATR Online where outstanding tax (subject to cap) to be included in 2021/22 PAYE code 31 January 2021 - SATR Online 2019/20 Returns Filing Deadlines: 31 May 2020 - P60s to employees
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6Made with FlippingBook HTML5