Based on the Budget announcements of 29 October 2018 please see below some of the main tax rates & allowances for the forthcoming 2019/20 tax year.
Income Tax
Personal allowance £12,500
Starting rate £1-£5,000 20% (the rate on non dividend savings income is 0% where taxable non savings income does not exceed £5,000)
Basic rate £5001-£37,500 20%
Higher rate £37,501-£150,000 40%
Additional rate over £150,000 45%
Notes:
Dividends are subject to different rates of tax. The dividend allowance of £2000 is 0%, dividends above this are taxed at 7.5% for starting/basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers.
The basic rate band can be extended by gross Gift Aid donations and most personal pension contributions.
The personal allowance is reduced by £1 for every £2 on income over £100,000.
A high income child benefit charge applies where adjusted net income is in excess of £50,000. The charge is calculated at 1% of the benefit for each £100 of adjusted net income over £50,000 and therefore charges the full amount if adjusted net income exceeds £60,000.
There are differing rates of income tax for Scottish taxpayers which have not been outlined above.
Other allowances:
Married/civil partners transferable allowance £1,250 (available where one partner is a non taxpayer and the other is a basic rate tax payer)
Savings allowance £1,000 (£500 for higher rate tax payers and £nil for additional rate tax payers)
Trading income allowance £1,000 (if gross income is in excess of £1,000 then a deduction of £1,000 permitted if greater than actual expenses)
Property income allowance £1,000 (if gross income is in excess of £1,000 then a deduction of £1,000 permitted if greater than actual expenses)
National Insurance
Self-employed
Class 2 £3.00 per week but can be exempt if profits are below £6,365
Class 4 9% payable on profits between £8,632 and £50,000, 2% payable on profits above £50,000
Employees
Class 1 12% on earnings between £166 and £962 per week, 2% on earnings over £962 per week
Employers
Class 1 13.8% on earnings above £166 per week
Class 1A £13.8%
Voluntary
Class 3 £15 per week
Corporation Tax
Corporation Tax 19%
Tax payable on loans to participators 32.5% (can be recovered once loans have been repaid)
VAT
Compulsory registration if taxable supplies are above £85,000 within the previous 12 months or the next 30 days alone.
Capital Allowances
Plant and machinery
Annual investment allowance 100% (maximum £1m pa from 1.1.2019 to 31.12.2020 (£200,000 pa up to 31.12.2018 and from 1.1.2021)).
Long life assets and integral features 6% (reducing balance basis)
Other assets 18% (reducing balance basis)
First year allowance 100% (only available on certain expenditure)
Cars
CO2 emissions 50 g/km or less 100%
CO2 emissions 51-110 g/km 18% (reducing balance basis)
CO2 emissions over 110 g/km 8% (reducing balance basis)
Structures and buildings
Expenditure on non residential structures and buildings on or after 29.10.2018 2%
Capital Gains Tax
Annual exemption £12,000
Rate payable by basic and starting rate taxpayers 10% (8% surcharge on residential property)
Rate payable by higher and additional rate taxpayers 20% (8% surcharge on residential property)
Entrepreneurs relief lifetime allowance remains at £10m and where entrepreneurs relief applies there is a rate of 10%.
Note: From 6 April 2020 certain disposals of residential property must be reported and the tax paid to HMRC within 30 days of sale. Similar rules for non-residents come into force from 6 April 2019.
