Doing taxes

UK Income Tax and Allowances

 

How much Income Tax someone pays in each tax year (from 6 April to the 5 April the following year) depends on:

Personal Allowances

The Personal Allowance is the amount of income a person can get before they pay tax.

Allowances2019 to 2020   2018 to 2019        2017 to 2018          2016 to 2017     
Personal Allowance £12,500 £11,850 £11,500 £11,000
Income limit for Personal Allowance £100,000 £100,000 £100,000 £100,000

 

The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.

 

Other allowances

Allowances 2019 to 2020    2018 to 2019        2017 to 2018          2016 to 2017     
Married Couple’s Allowance - maximum amount £8,915 £8,695 £8,445 £8,355
Married Couple’s Allowance - minimum amount £3,450 £3,360 £3,260 £3,220
Blind Person’s Allowance £2,450 £2,390 £2,320 £2,290

 

Tax rates and bands - UK (excluding Scotland)

Tax is paid on the amount of taxable income remaining afteallowances have been deducted. Different rates apply for Scotland.

BandRateIncome after allowances 
2019 to 2020
     Income after allowances 
2018 to 2019
     Income after allowances 
2017 to 2018
     Income after allowances 
2016 to 2017

Starting rate for savings     

10%

(0% from 2015 to 2016)

Up to £5,000 Up to £5,000 Up to £5,000 Up to £5,000

Basic rate in UK

20% Up to £37,500  Up to £34,500 Up to £33,500 Up to £32,000

Higher rate 

40% £37,501 to £150,000  £34,501 to £150,000 £33,501 to £150,000 £32,001 to £150,000

Additional rate

45%  Over £150,000 Over £150,000 Over £150,000 Over £150,000

 

Tax rates and bands - Scotland

Tax is paid on the amount of taxable income remaining after allowances have been deducted. Different rates apply for the rest of the UK.

BandRateIncome after allowances 
2019 to 2020
     Income after allowances 
2018 to 2019
     Income after allowances 
2017 to 2018
     Income after allowances 
2016 to 2017

Starter rate in Scotland

19% Up to £2,049 Up to £2,000 - -

Basic rate in Scotland

20% £2,050 to £12,444 £2,001 to £12,150 Up to £31,500 Up to £32,000

Intermediate rate in Scotland

21% £12,445 to £30,930 £12,151 to £31,580 - -
Higher rate in Scotland 40%
(41% from 2018 to 2019)
£30,931 to £150,000 £31,581 to £150,000 £31,501 to £150,000 £32,001 to £150,000

Top rate in Scotland

46% Over £150,000 Over £150,000 - -

 

Dividends - 6 April 2018 to 5 April 2019

The following rates for tax on dividends apply from 6 April 2017 to 5 April 2018.

The first £2,000 of dividend income is tax free, regardless of the level of non-dividend income.

BandDividend tax rates
Basic rate (and non-taxpayers) 7.5%
Higher rate 32.5%
Additional rate 38.1%

  

Dividends - 6 April 2016 to 5 April 2020

The following rates for tax on dividends apply from 6 April 2016 to 5 April 2020.

The first £2,000 of dividend income is tax free(between 6 April 2018 to 5 April 2020), regardless of the level of non-dividend income.

The first £5,000 of dividend income is tax free(between 6 April 2016 to 5 April 2018), regardless of the level of non-dividend income.

BandDividend tax rates
Basic rate (and non-taxpayers) 7.5%
Higher rate 32.5%
Additional rate 38.1%

  

Dividends - 6 April 2010 to 5 April 2016

The following rates for tax on dividends apply from 6 April 2010 to 5 April 2016.

Add your other taxable income to your dividends to work out the band they’re in. You may pay tax at more than one rate.

BandDividend tax rates
Basic rate (and non-taxpayers) 0%
Higher rate 25.0%
Additional rate (from 6 April 2013) 30.56%
Additional rate (dividends paid before 6 April 2013) 36.11%

 

 

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