Useful updates & information

Useful updates & information

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Tax & NIC Thresholds 2020/21 2021/22
Tax Pers Allow 12,500 12,570
Starting rate for Savings 5,000 5,000
Current Income band 2021/22
Up to 12,570  (2020/21 was 12,500) 0% 0%
12,571 – 37,700  (2020/21 was 12,501 – 37,500) 20% 20%
37,701-150,000  (2020/21 was 37,501 – 150,000) 40% 40%
150,000+ 45% 45%
Dividend allowance 2,000 2,000
Basic/standard taxpayer 7.50% 7.50%
Higher rate taxpayer 32.50% 32.50%
NIC 2020/21 2021/22
Class 1 Lower earnings limit 6,240 6,240
Class 1 Primary threshold 9,500 9,564
Class 1 Rate (between primary & upper threshold) 12% 12%
Class 1 Secondary threshold 8,788 8,844
Class 1 Upper secondary threshold (under 21) 50,000 50,268
Class 1 Apprentice upper secondary threshold (under 25) 50,000 50,268
Class 1 Upper earnings limit 50,000 50,268
Class 2 Lower income threshold 6,475 6,515
Class 2 Per annum 158.60 158.60
Class 4 Rate 9% 9%
Class 4 Lower limit 9,500 9,568
Class 1A 13.80% 13.80%
Capital Gains
Annual allowance 12,300 12,300
Rates on residential property Basic rate taxpayer 18% 18%
Rates on residential property Higher rate taxpayer 28% 28%
Rates on other gains Basic rate taxpayer 10% 10%
Rates on other gains Higher rate taxpayer 20% 20%

From 6 April 2020, where CGT is due on the disposal of UK residential property by a UK resident individual or trustees, a new standalone online return will need to be filed, together with payment on account of CGT, within 30 days of the date of completion of the transaction. (Finance Act 2019 Schedule 2).

Corporation tax profits 2020/21 2021/22
£0-£300,000 19% 19%
£300,000 + 19% 19%
Other Thresholds
Value added tax
Registration limit 85,000 85,000
De-registration limit 83,000 83,000
Student loan & postgraduate loan recovery
Employee earnings threshold for student loan plan 1 per annum  19,390 19,895
Employee earnings threshold for student loan plan 2 per annum 26,575 27,295
Employee earnings threshold for student loan plan 4 per annum 25,000
Student loan deductions 9% 9%
Employee earnings threshold for postgraduate loan per annum 21,000 21,000
Postgraduate loan deductions 6%
Minimum wage
From 1 April 2021
Age 23+ 8.91
Age 21-22 8.36
Age 18-20 6.56
Under 18 4.62
Apprentice 4.30
Employment Allowance 4,000 4,000
Statutory Maternity Pay – per week 151.20 151.97
Statutory Sick Pay – per week 95.85 96.35
Marriage Allowance – per annum 1,250 1,260

Capital Allowances

From 2018/19 Annual Investments Allowance (AIA) limit is £1m from Jan 2019, but decreases to £200,000 from 1 January 2022.

Capital allowances rates 2020/21 2021/22
AIA 100% 100%
Main pool 18% 18%
Special pool 8% 6%
Small pool write off, balance less than £1,000 100% 100%
Structure & Buildings 3% – straight line 3% – straight line