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Income Tax rates and bands

   
Tax is paid on the amount of taxable income remaining after allowances have been deducted.
BandRateIncome after allowances 2020 to 2021Income after allowances 2019 to 2020Income after allowances 2018 to 2019Income after allowances 2017 to 2018
Starting rate for savings10% (0% from 2015 to 2016)Up to £5,000Up to £5,000Up to £5,000Up to £5,000
Starter rate in Scotland19%Up to £2,085Up to £2,049Up to £2,000–
Basic rate in Scotland20%£2,086 to £12,658£2,050 to £12,444£2,001 to £12,150Up to £31,500
Basic rate in England & Northern Ireland20%Up to £37,500Up to £37,500Up to £34,500Up to £33,500
Basic rate in Wales20%Up to £37,500Up to £37,500Up to £34,500Up to £33,500
Intermediate rate in Scotland21%£12,659 to £30,930£12,445 to £30,930£12,151 to £31,580–
Higher rate in Scotland40%£30,931 to £150,000£30,931 to £150,000£31,581 to £150,000£31,501 to £150,000
 (41% from 2018 to 2019)    
Higher rate in England & Northern Ireland40%£37,501 to £150,000£37,501 to £150,000£34,501 to £150,000£33,501 to £150,000
Higher rate in Wales40%£37,501 to £150,000£37,501 to £150,000£34,501 to £150,000£33,501 to £150,000
Top rate in Scotland46%Over £150,000Over £150,000Over £150,000Over £150,000
England & Northern Ireland Additional rate45%Over £150,000Over £150,000Over £150,000Over £150,000
Wales Additional rate45%Over £150,000Over £150,000Over £150,000Over £150,000

Dividends

 
The following rates for tax on dividends apply from 6 April 2020 to 5 April 2021.
BandDividend tax rates
Basic rate (and non-taxpayers)7.50%
Higher rate32.50%
Additional rate (from 6 April 2013)38.10%
Additional rate (dividends paid before 6 April 2013)42.50%

Class 1 National Insurance thresholds

   
Employers and employees pay Class 1 National Insurance depending on how much the employee earns. You can view these earnings thresholds by week (table 1.1) or by month (table 1.2).
1.1 Weekly thresholds    
£ per week2020 to 20212019 to 20202018 to 20192017 to 2018
Lower Earnings Limit (LEL)£120£118£116£113
Employees do not pay National Insurance but    
get the benefits of paying    
Primary Threshold (PT)£183£166£162£157
Employees start paying National Insurance    
Secondary Threshold (ST)£169£166£162£157
Employers start paying National Insurance    
Upper Accrual Point (UAP)N/AN/AN/AN/A
Employees with a contracted-out pension pay a   
lower rate of National Insurance up to this point    
Upper Earnings Limit (UEL)£962£962£892£866
All employees pay a lower rate of National Insurance    
above this point    
Upper Secondary Threshold (UST)£962£962£892£866
Employers of employees who are under 21 pay zero rate    
up to this point    
Apprentice Upper Secondary Threshold (AUST)£962£962£892£866
Employers of certain apprentices who are under 25 pay    
zero rate up to this point    

1.2 Monthly thresholds

    
£ per month2020 to 20212019 to 20202018 to 20192017 to 2018
Lower Earnings Limit (LEL)£520£512£503£490
Employees do not pay National Insurance    
but get the benefits of paying    
Primary Threshold (PT)£792£719£702£680
Employees start paying National Insurance    
Secondary Threshold (ST)£732£719£702£680
Employers start paying National Insurance    
Upper Accrual Point (UAP)N/AN/AN/AN/A
Employees with a contracted-out pension pay   
a lower rate of National Insurance up to this point    
Upper Earnings Limit (UEL)£4,167£4,167£3,863£3,750
All employees pay a lower rate of National Insurance    
above this point    
Upper Secondary Threshold (UST)£4,167£4,167£3,863£3,750
Employers of employees who are under 21 pay zero rate    
up to this point    
Apprentice Upper Secondary Threshold (AUST)£4,167£4,167£3,863£3,750
Employers of certain apprentices who are under 25    
pay zero rate up to this point    

2. Class 1 National Insurance rates

   
2.1 Employer rates    
This table shows how much employers pay towards their employees’ National Insurance.  
 2020 to 20212019 to 20202018 to 20192017 to 2018
Rate above the Secondary Threshold13.80%13.80%13.80%13.80%
Rate below Upper Secondary Threshold0%0%0%0%
Rate below Apprentice Upper Secondary Threshold0%0%0%0%
Rebate for any employees in contracted-out pension schemesN/AN/AN/AN/A
Rebate for any employees in money-purchase schemesN/AN/AN/AN/A
Class 1A rate on expenses and benefits13.80%13.80%13.80%13.80%
2.2 Employee rates    
This table shows how much employers deduct from employees’ pay.   
 2020 to 20212019 to 20202018 to 20192017 to 2018
Between Primary Threshold and Upper Earnings Limit12%12%12%12%
Above Upper Earnings Limit2%2%2%2%
Rebate for employees in contracted-out workplace pension schemesN/AN/AN/AN/A
Married women’s reduced rate between primary threshold and upper earnings limit5.85%5.85%5.85%5.85%
Rate for employees deferring National Insurance2%2%2%2%

3. Class 2 and Class 4 National Insurance (self-employed)

There are 2 types of National Insurance for people who work for themselves, depending on their profits. 
3.1 Class 2    
 2020 to 20212019 to 20202018 to 20192017 to 2018
Small Profits Threshold amount per year£6,475£6,365£6,205£6,025
Rate per week£3.05£3£2.95£2.85
3.2 Class 4    
£ per year2020 to 20212019 to 20202018 to 20192017 to 2018
Lower Profits Limit£9,500£8,632£8,424£8,164
Self-employed people start paying Class 4 National Insurance    
Upper Profits Limit£50,000£50,000£46,350£45,000
Self-employed people pay a lower rate    
Rate between Lower Profits Limit and Upper Profits Limit9%9%9%9%
Rate above Upper Profits Limit2%2%2%2%
3.3 Special rates    
£ per week2020 to 20212019 to 20202018 to 20192017 to 2018
Special Class 2 rate for share fishermen£3.70£3.65£3.60£3.50
Special Class 2 rate for volunteer development workers£6.00£5.90£5.80£5.65
Additional Class 4 rate when deferring National Insurance2%2%2%2%

4. Class 3 National Insurance (voluntary)

You can pay voluntary National Insurance to fill or avoid gaps in your record.
If you’re paying voluntary contributions for the previous 2 tax years (2019 to 2020 or 2018 to 2019), you’ll pay the original rates for those years.
For all other years you’ll pay the current rate (2020 to 2021). 
£ per week2020 to 20212019 to 2020
Class 3 rate£15.30£15
Monthly Direct Debit payments for 2020 to 2021 
How much you pay depends on whether there are 4 or 5 weeks in the month.
Payment dateAmount 
08-May-20£61.20 
12-Jun-20£76.50 
10-Jul-20£61.20 
14-Aug-20£61.20 
11-Sep-20£76.50 
09-Oct-20£61.20 
13-Nov-20£61.20 
11-Dec-20£76.50 
08-Jan-21£61.20 
12-Feb-21£76.50 
12-Mar-21£61.20 
09-Apr-21£61.20 

Corporation Tax rates

       
The rate of Corporation Tax you pay depends on how much profit your company makes.    
Rates for Corporation Tax years starting 1 April      
There are different rates for ring fence companies.      
Rate2020201920182017201620152014
Small profits rate––––––20%
(companies with profits under £300,000)       
Main rate––––––21%
(companies with profits over £300,000)       
Main rate (all profits except ring fence profits)19%19%19%19%20%20%–
Marginal Relief lower limit––––––£300,000
Marginal Relief upper limit––––––£1,500,000
Standard fraction––––––1/400
Special rate for unit trusts and open-ended20%20%20%20%20%20%20%
investment companies       

Ring fence companies

 
There are different Corporation Tax rates for companies that make profits from oil extraction or oil rights in the UK or UK continental shelf. These are known as ‘ring fence’ companies.
Ring fence companies can claim Marginal Relief on profits between £300,000 and £1.5 million.
Rate2014 to 2020
Small profits rate19%
(companies with profits under £300,000) 
Main rate30%
(companies with profits over £300,000) 
Ring fence fraction11/400

VAT rates for goods and services

 % of VATWhat the rate applies to 
Standard rate20%Most goods and services 
Reduced rate5%Some goods and services, eg children’s car seats and home energy 
Zero rate0%Zero-rated goods and services, eg most food and children’s clothes