Clients' area

Tax Data 2019-20

All figures are annual amounts

Allowances
Personal allowance £12,500
Allowance withdrawn from £100,000
Transferable marriage allowance £1,250
Trading income £1,000
Property income £1,000
Rent-a-room £7,500
Tax on earnings
Earnings to £37,500 20%
£37,501 to £150,000 40%
Over £150,000 45%
Thresholds and rates for Scottish taxpayers TBA
Tax on interest
First £5,000 0%
20% taxpayers £1,000@ 0%
40% taxpayers £500 @ 0%
Balance taxed at marginal rates
Tax on dividends
First £2,000 0%
Balance in band to £37,500 7.5%
£37,501 to £150,000 32.5%
above £150,000 38.1%
National Insurance
Class 1 employees
Under 21 (apprentices 25)
13.8% over £8,632;
0% to £50,000
Class 1 employees 12% on £8,632 to £50,000;
2% above £50,000
Class 4 self-employed 9% on £8,632 to £50,000;
2% on profits above £50,000
Class 2 self-employed
£156
Voluntary if profits under £6,365
Class 3 voluntary £780
Employment Allowance
Set against employer's class 1 NIC
(Not available for one-person companies)
£3,000
Inheritance Tax
Nil rate band £325,000
Residence nil rate band £150,000
Excess taxed at 40%
Where 10% left to charity 36%
Pension Contributions
No earnings £3,600 gross
Otherwise 100% of earnings
Annual contribution caps:
No pension taken £40,000
Some pension taken £4,000
Adjusted income over £150,000:
annual cap tapered to
£10,000
Lifetime pension fund cap £1,055,000
Capital Gains Tax
Within basic tax rate 10%
Higher tax bands 20%
Surcharge for residential property and carried interest 8%
Entrepreneurs' relief 10%
Investors' relief 10%
Annual exemption £12,000
Corporation Tax
All profits 19%
VAT
Registration turnover £85,000
Deregistration turnover £83,000
Standard rate 20%
Reduced rate 5%
© Michael Martin Partnership 2018 Limited 2018 V2.0