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 | 2025/26 £ | 2024/25 £ | 2023/24 £ | ||||||
| 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% | 87,440 | 87,440 | 87,440 | ||||||
| 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 | 2025/26 £ | 2024/25 £ | 2023/24 £ | ||||||
| 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 | 500 | 1,000 | |||||||
| 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% | |||||||
| National Insurance | Note | 2025/26 £ | 2024/25 £ | 2023/24 £ | ||||||
| Lower earnings limit | per week | 125 | 123 | 123 | ||||||
| Primary threshold | per week | 242 | 242 | 242 | ||||||
| Secondary threshold | per week | 96 | 175 | 175 | ||||||
| Upper earnings limit | per week | 967 | 967 | 967 | ||||||
| Employees rate | Class 1 | 2,8 | 8.00% | 8.00% | 12%/10% | |||||
| Class 1 surcharge | 2.00% | 2.00% | 2.00% | |||||||
| Employers rate | Class 1 | 3 | 15.00% | 13.80% | 13.80% | |||||
| Class 1A | 4 | 15.00% | 13.80% | 13.80% | ||||||
| Employment Allowance | 10,500 | 5,000 | 5,000 | |||||||
| Self employed | Class 2 - per week £ | 3.50 | 3.45 | 3.45 | ||||||
| Class 2 - Small Profits Threshold | 6,845 | 6,725 | 6,725 | |||||||
| Class 4 - % | 6.00% | 6.00% | 9.00% | |||||||
| Class 4 - due on earnings over and less than | 12,570 | 12,570 | 12,570 | |||||||
| 50,270 | 50,270 | 50,270 | ||||||||
| Class 4 - surcharge - due on earnings over | 2.00% | 2.00% | 2.00% | |||||||
| 50,270 | 50,270 | 50,270 | ||||||||
| Corporation Tax | Note | 2025/26 £ | 2024/25 £ | 2023/24 £ | ||||||
| Main Rate | 25.0% | 25.0% | 19.0% | |||||||
| Small Profits Rate | 19.0% | 19.0% | 19.0% | |||||||
| 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 | 2025/26 £ | 2024/25 £ | 2023/24 £ | ||||||
| Annual exemption | 3,000 | 6,000 | 12,300 | |||||||
| Standard CGT rate | Gains in BR tax band | 9 | 18% | 10% | 10% | |||||
| Gains in HR or AR tax band | 24% | 18% | 18% | |||||||
| Residential Property (own home remains exempt) | now standard rate | 20%/28% | 20%/28% | |||||||
| BADR CGT rate | 10 | 14% | 10% | 10% | ||||||
| Inheritance Tax | Note | 2025/26 £ | 2024/25 £ | 2023/24 £ | ||||||
| Exempt Amount | 325,000 | 325,000 | 325,000 | |||||||
| Residence Nil Rate Band | 175,000 | 175,000 | 175,000 | |||||||
| Tax rate | 40% | 40% | 40% | |||||||
| VAT | Note | 2025/26 £ | 2024/25 £ | 2023/24 £ | ||||||
| Registration Threshold | 90,000 | 90,000 | 83,000 | |||||||
| Deregistration Threshold | 88,000 | 88,000 | 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. | ||||||||||
| 7. Scottish and Welsh tax rates not reflected. Check online. | ||||||||||
| 8. In year NI changes 2023/24 | ||||||||||
| - Employees NI 12% up to 5th January 2023 then 10% | ||||||||||
| 9. In year CGT rate changes from 30th October 2024. The 2024-25 column shows the pre 30th October 2024 rates, the 2025-26 column shows the rates after that date. | ||||||||||
| 10. BADR (Business Assets Disposal Relief) rate will rise to 18% from April 2026. Lifetime Allowance for BADR £1m. | ||||||||||