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CLIENTS page
CLIENTS page
Income Tax Rates
|
INCOME TAX RATES - ENGLAND, WALES & NI - non-dividend income |
Tax rate |
2019/20 |
2018/19 |
Notes |
|
Savings starting rate |
0% |
£0-£5,000 |
£0-£5,000 |
Only available if non-savings income is less than this amount. |
|
Basic rate |
20% |
£0-£37,500 |
£0-£34,500 |
The rates of tax are after your Personal Allowances - so in 2019/20, you start paying the 40% higher rate of tax when your income exceeds £37,500 + £12,500 = £50,000 (2018/19 - £46,350). The tax bands are increased by gross pension and gift aid payments, thus giving you tax relief at higher rates. |
|
Higher rate |
40% |
£37,501 -£150,000 |
£34,501 - £150,000 | |
|
Additional rate |
45% |
> £150,000 |
> £150,000 |
|
INCOME TAX RATES - dividend income new rules from 6.4.2016 |
2019/20 |
2018/19 |
Notes |
|
Starting rate |
0% (to £2,000) |
0% (to £2,000) |
From 6.4.2016 the notional tax credit was abolished and new dividend tax rates announced. A dividend allowance of £5,000 taxed at 0% was introduced. Any dividend income over the allowance is treated as the highest part of a taxpayer’s income to determine which tax band it falls into for the purpose of calculating the tax on dividends. |
|
Dividends within basic rate band |
7.5% |
7.5% | |
|
Dividends at higher rate band |
32.5% |
32.5% | |
|
Dividend at additional rate band |
38.1% |
38.1% |
|
SCOTTISH INCOME TAX RATES non-dividend income |
Tax rate |
2019/20 |
2018/19 |
Notes |
|
Starter rate |
19% |
£1-£2,049 |
£0-£2,000 |
The rates of tax are after personal allowances. You pay Scottish rates of income tax if you live in Scotland. |
|
Basic rate |
20% |
£2,050-£12,444 |
£2,001-£12,150 | |
|
Intermediate rate |
21% |
£12,445-£30,930 |
£12,151-£31,580 | |
|
Higher rate |
41% |
£30,931 -£150,000 |
£31,581 - £150,000 | |
|
Additional rate band |
46% |
> £150,000 |
> £150,000 |