This Content Was Last Updated on March 23, 2024 by Jessica Garbett
The main tax rates as they apply to our clients.
| YogaTax | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| The main tax rates as they apply to YogaTax Clients | ||||||||||
| Income Tax | Note | 2024/25 £ | 2023/24 £ | 2022/23 £ | ||||||
| Personal allowance | Tax free (see below) | 12,570 | 12,570 | 12,570 | ||||||
| Basic rate band | 20% | |||||||||
| England and Wales | 1 / 7 | 37,700 | 37,700 | 37,700 | ||||||
| Higher rate band | 40% | 87440 | 87440 | 112,500 | ||||||
| Additional rate | 45% | balance | balance | balance | ||||||
| Personal allowance is abated at £100,000 of income, at the rate of £1 of allowance for each £2 of income over £100,000 | ||||||||||
| Savings and Dividends | Note | 2024/25 £ | 2023/24 £ | 2022/23 £ | ||||||
| Savings starting rate | 6 | 0% | 0% | 0% | ||||||
| Savings starting band | 6 | 5,000 | 5,000 | 5,000 | ||||||
| Personal Savings Allowance - Basic Rate Taxpayers | 1,000 | 1,000 | 1,000 | |||||||
| Personal Savings Allowance - Higher Rate Taxpayers | 500 | 500 | 500 | |||||||
| Personal Savings Allowance - Additional Rate Taxpayers | - | - | - | |||||||
| Savings are otherwise taxed at normal Income Tax rates - http://www.whitefieldtax.co.uk/tax-on-savings/ | ||||||||||
| Dividend Allowance | 500 | 1,000 | 2,000 | |||||||
| Dividend Tax - Basic Rate Taxpayers | 8.75% | 8.75% | 7.5% | |||||||
| Dividend Tax - Higher Rate Taxpayers | 33.75% | 33.75% | 32.5% | |||||||
| Dividend Tax - Additional Rate Taxpayers | 39.35% | 39.35% | 38.1% | |||||||
| Prior to 16/17 the taxation regime for dividend differed - see http://www.whitefieldtax.co.uk/tax-on-savings/ | ||||||||||
| National Insurance | Note | 2024/25 | 2023/24 £ | 2022/23 £ | ||||||
| Lower earnings limit | per week | 123 | 123 | 123 | ||||||
| Primary threshold | per week | 242 | 242 | 229 | ||||||
| Secondary threshold | per week | 175 | 175 | 175 | ||||||
| Upper earnings limit | per week | 967 | 967 | 967 | ||||||
| Employees rate | Class 1 | 2,8,9 | 8.00% | 12%/10% | 12%/13.25% | |||||
| Class 1 surcharge | 2.00% | 2.00% | 2%/3.25% | |||||||
| Employers rate | Class 1 | 3,8 | 13.80% | 13.80% | 13.8%/15.05% | |||||
| Class 1A | 4,8 | 13.80% | 13.80% | 13.8%/15.05% | ||||||
| Self employed | Class 2 - per week £ | 3.45 | 3.45 | 3.15 | ||||||
| Class 2 - Small Profits Threshold | 6,725 | 6,725 | 6,725 | |||||||
| Class 4 - % | 9.00% | 9.00% | 9.73% | |||||||
| Class 4 - due on earnings over and less than | 12,570 | 12,570 | 11,908 | |||||||
| 50,270 | 50,270 | 50,270 | ||||||||
| Class 4 - surcharge - due on earnings over | 2.00% | 2.00% | 2.73% | |||||||
| 50,270 | 50,270 | 50,270 | ||||||||
| Corporation Tax | Note | 2024/25 £ | 2023/24 £ | 2022/23 £ | ||||||
| Main Rate | 25.0% | 25.0% | 19.0% | |||||||
| Small Profits Rate | 19.0% | 19.0% | n/a | |||||||
| Small Profits Rate applies to profits below £50,000. Where profits over £50,000 the full rate applies to all profits, but | ||||||||||
| there is Marginal Small Companies Relief on profits up to £250,000 which smooths the transition into full rate. | ||||||||||
| For most companies this gives a rate of 26.5% between £50,000 and £250,000. | ||||||||||
| Capital Gains Tax | Note | 2024/25 | 2023/24 £ | 2022/23 £ | ||||||
| Annual exemption | 3,000 | 6,000 | 12,300 | |||||||
| Standard CGT rate | Gains in BR tax band | 10% | 10% | 10% | ||||||
| Gains in HR or AR tax band | 18% | 18% | 18% | |||||||
| Residential Property (own home remains exempt) | 20%/24% | 20%/28% | 20%/28% | |||||||
| Entrepreneurs CGT rate | 10% | 10% | 10% | |||||||
| Inheritance Tax | Note | 2024/25 | 2023/24 £ | 2022/23 £ | ||||||
| Exempt Amount | 325,000 | 325,000 | 325,000 | |||||||
| Tax rate | 40% | 40% | 40% | |||||||
| VAT | Note | 2024/25 | 2023/24 £ | 2022/23 £ | ||||||
| Registration Threshold | 90,000 | 85,000 | 83,000 | |||||||
| Deregistration Threshold | 88,000 | 83,000 | 81,000 | |||||||
| VAT rate | 20% | 20% | 20% | |||||||
| Flat rate threshold | 150,000 | 150,000 | 150,000 | |||||||
| 1. Rates are applicable to earned income and savings outside the savings allowance. | ||||||||||
| 2. Rate applies to income per week between primary threshold and upper earnings limit - on income between lower earnings limit and primary threshold the rate is 0% but there is still a credit for state benefit entitlements. | ||||||||||
| 3. Applicable to all earnings over secondary threshold. | ||||||||||
| 4. Applicable to benefits in kind | ||||||||||
| 6. Abated £ for £ as income exceeds Personal Allowance plus Savings Allowance. The Allowance only benefits tax payers with earned and dividend income below £18,570 (2024/25) | ||||||||||
| 7. Scottish and Welsh tax rates not reflected. Check online. | ||||||||||
| 8. In year NI changes 2022/23 | ||||||||||
| - Employees NI 13.25% up to 5 November 2022, then 12% | ||||||||||
| - Employees Surcharge Rate 3.25% up to 5th November 2022, then 2% | ||||||||||
| -Employers NI 15.05% up to 5th November 2022, then 13.8% | ||||||||||
| 9. In year NI changes 2023/24 | ||||||||||
| - Employees NI 12% up to 5th January 2023 then 10% | ||||||||||
