If you are looking at Income Tax Rates and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances and tax efficient ways to legally minimise your Income Tax.
Income Tax rates for England and Wales (and Scotland prior to 2018/19)
| Rate | 2020/21 | 2021/22 | 2022/23 | |
| Starting rate for savings: 0%[1] | £0 - £5,000 | £0 - £5,000 | £0 - £5,000 | £0 - £5,000 |
| Basic rate: 20% | £0 - £37,500 | £0 - £37,500 | £0 - £37,700 | £0 - £37,700 |
| Higher rate: 40% | £37,501 - £150,000 | £37,501 - £150,000 | £37,701 - £150,000 | £37,701 - £150,000 |
| Additional rate: 45% | Over £150,000 | Over £150,000 | Over £150,000 | Over £150,000 |
For Scottish Taxpayers, the following proposed rates and bands will apply if the Scottish Budget for 2020-21 is approved by the Scottish Government.
| Rate | 2020/21 | 2021/22 | |
| Starter rate | 19% | Over £12,500 up to £14,585 | Over £12,570 up to £14,667 |
| Basic rate | 20% | Over £14,585 up to £25,158 | Over £14,667 up to £25,296 |
| Higher rate | 21% | Over £25,158 up to £43,430 | Over £25,296 up to £43,662 |
| Additional rate | 41% | Over £43,430 up to £150,000 | Over £43,430 up to £150,000 |
| Top rate | 46% | Above £150,000 | Above £150,000 |
Note: Scottish rates apply to Scottish taxpayers on all non-savings income which includes earned income from employment, self-employment or partnerships and property income, pension income and any other income that is not classed as savings or dividends.
If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.
| Dividend Rates | 2020/21 | 2021/22 | |
| Dividend ordinary rate - for dividends otherwise taxable at the basic rate (effective rate with tax credit) | 7.50% | 7.50% | 8.75% |
| Dividend upper rate - for dividends otherwise taxable at the higher rate (effective rate with tax credit) | 32.50% | 32.50% | 33.75% |
| Dividend additional rate - for dividends otherwise taxable at the additional rate (effective rate with tax credit) | 38.10% | 38.10% | 39.35% |
Disclaimer: This App and its contents have been produced as a helpful reference point. The information should be used as a guide only and your specific circumstances are best discussed directly with us.
No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this App is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this App.