This Content Was Last Updated on November 23, 2023 by Jessica Garbett
The main tax rates as they apply to our clients.
Note this table is not updated NI changes in Autumn Statement 2023. To recap the Autumn Statement provided for:
- 2% cut in Employees NI from 6th January 2024
- 1% cut in Self Employed Class 4 NI from 6th April 2024
- Abolition of Class 2 NI for the Self Employed from 6th April 2024.
Income Tax | Note | 2023/24 £ | 2022/23 £ | 2021/22 £ | ||||||
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 | 112,500 | 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 | 2023/24 £ | 2022/23 £ | 2021/22 £ | ||||||
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 | 2,000 | 2,000 | 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 | 2023/24 £ | 2022/23 £ | 2021/22 £ | ||||||
Lower earnings limit | per week | 123 | 123 | 120 | ||||||
Primary threshold | per week | 242 | 229 | 184 | ||||||
Secondary threshold | per week | 175 | 175 | 170 | ||||||
Upper earnings limit | per week | 967 | 967 | 967 | ||||||
Employees rate | Class 1 | 2 | 12.00% | 12.73% | 12% | |||||
Class 1 surcharge | 2.00% | 2.73% | 2% | |||||||
Employers rate | Class 1 | 3 | 13.80% | 14.53% | 13.8% | |||||
Class 1A | 4 | 13.80% | 14.53% | 13.8% | ||||||
Self employed | Class 2 - per week £ | 3.45 | 3.15 | 3.05 | ||||||
Class 2 - Small Profits Threshold | 6,725 | 6,725 | 6,515 | |||||||
Class 4 - % | 9.00% | 9.73% | 9% | |||||||
Class 4 - due on earnings over and less than | 12,570 | 11,908 | 9,500 | |||||||
50,270 | 50,270 | 50,270 | ||||||||
Class 4 - surcharge - due on earnings over | 2.00% | 2.73% | 2% | |||||||
50,270 | 50,270 | 50,270 | ||||||||
Corporation Tax | Note | 2023/24 £ | 2022/23 £ | 2021/22 £ | ||||||
Main Rate | 25.0% | 19.0% | 19.0% | |||||||
Small Proifits Rate | 19.0% | n/a | n/a | |||||||
Small Profits Rate applies to profits brlow £50,000. Where profits over £50,000 the full rate applies to all profits, but | ||||||||||
there is Marginal Small Companies Releif 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 | 2023/24 £ | 2022/23 £ | 2021/22 £ | ||||||
Annual exemption | 6,000 | 12,300 | 12,000 | |||||||
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%/28% | 20%/28% | 20%/28% | |||||||
Entrepreneurs CGT rate | 10% | 10% | 10% | |||||||
Inheritance Tax | Note | 2023/24 £ | 2022/23 £ | 2021/22 £ | ||||||
Exempt Amount | 325,000 | 325,000 | 325,000 | |||||||
Tax rate | 40% | 40% | 40% | |||||||
VAT | Note | 2023/24 £ | 2022/23 £ | 2021/22 £ | ||||||
Registration Threshold | 85,000 | 83,000 | 82,000 | |||||||
Deregistration Threshold | 83,000 | 81,000 | 80,000 | |||||||
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 (2023/24) | ||||||||||
7. Scottish and Welsh tax rates not reflected. Check online. |