Tax Rates and Allowances for the Self Employed
Key Tax Rates for the UK
Below is a list of the Key tax rates and personal allowances for the self employed.
There are plenty that have not been included in here such as dividend tax, tax on interest, corporation tax etc, but this will get you started. If you want to check out the official HMRC rates, then please go to >>> https://www.gov.uk/income-tax-rates
| Main tax rates & allowances | ||||||
| 2016/2017 | 2017/2018 | 2018/2019 | 2019/2020 | 2020/2021 | 2021/2022 | |
| Personal Allowance | £11,000 | £11,500 | £11,850 | £12,500 | £12,500 | £12,570 |
| Personal allowance reduces once taxable income is above £100,000 | ||||||
| Marriage allowance | £1,100 | £1,150 | £1,185 | £1,250 | £1,250 | £1,257 |
| 10% personal allowance can be transferred between certain spouses where neither pay tax above the basic rate | ||||||
| Income Tax Rates – After personal allowance | ||||||
| Band £ | ||||||
| 0 to £37,700 | 20% | |||||
| £37701 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| Band £ | ||||||
| 0 to £37,500 | 20% | 20% | ||||
| £37501 to £150,000 | 40% | 40% | ||||
| Over £150,000 | 45% | 45% | ||||
| Band £ | ||||||
| 0 to £34,500 | 20% | |||||
| £34,501 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| Band £ | ||||||
| 0 to £33,500 | 20% | |||||
| £33,501 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| Band £ | ||||||
| 0 to £32,000 | 20% | |||||
| £32,001 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| National Insurance | ||||||
| Class 1 | 12% | 12% | 12% | 12% | 12% | 12% |
| Class 2 | £145.60 | £148.20 | £153.40 | £156.00 | £158.60 | £158.60 |
| Class 2 – Small profits | £5,965.00 | £6,025.00 | £6,205.00 | £6,365.00 | £6,475.00 | £6,515.00 |
| Class 3 (per week) | £14.10 | £14.25 | £14.65 | £15.00 | £15.30 | £15.40 |
| Class 4 – lower | 9% | 9% | 9% | 9% | 9% | 9% |
| Class 4 – upper | 2% | 2% | 2% | 2% | 2% | 2% |
| Class 4 – Lower Threshold | £8,060.00 | £9,164.00 | £8,424.00 | £8,632.00 | £9,500.00 | £9,568.00 |
| Class 4 – Upper Threshold | £43,000.00 | £45,000.00 | £46,350.00 | £50,000.00 | £50,000.00 | £50,270.00 |
| Income Tax Rates – Scotland only – After personal allowance | ||||||
| Band £ | ||||||
| 0 to £2,097 | 19% | |||||
| £2,098 to £12,726 | 20% | |||||
| £12,727 to £31,092 | 21% | |||||
| £31,092 to £150,000 | 41% | |||||
| Over £150,000 | 46% | |||||
| Band £ | ||||||
| 0 to £2,085 | 19% | |||||
| £2,086 to £12,658 | 20% | |||||
| £12,659 to £30,930 | 21% | |||||
| £30,931 to £150,000 | 40% | |||||
| Over £150,000 | 46% | |||||
| Band £ | ||||||
| 0 to £2,049 | 19% | |||||
| £2,050 to £12,444 | 20% | |||||
| £12,445 to £30,930 | 21% | |||||
| £30931 to £150,000 | 40% | |||||
| Over £150,000 | 46% | |||||
| Band £ | ||||||
| 0 to £2,000 | 19% | |||||
| £2,000 to £12,150 | 20% | |||||
| £12,515 to £31,580 | 21% | |||||
| £31,581 to £150,000 | 40% | |||||
| Over £150,000 | 46% | |||||
| Band £ | ||||||
| 0 to £31,500 | 20% | |||||
| £31,501 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| Band £ | ||||||
| 0 to £32,000 | 20% | |||||
| £32,001 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| VAT thresholds from: | ||
| 1st April 2013 | £79,000 | |
| 1st April 2014 | £81,000 | |
| 1st April 2015 | £82,000 | |
| 1st April 2016 | £83,000 | |
| 1st April 2017 | £85,000 | |
| 1st April 2018 | £85,000 | |
| until 31st March 2024 | £85,000 | |
| Corporation Tax Rates from: | ||
| 1st April 2016 | 20% | |
| 1st April 2017 | 19% | |
| 1st April 2018 | 19% | |
| 1st April 2019 | 19% | |
| 1st April 2020 – onwards until April 2023 when it depends on profits | 19% | |
| Student Loan repayments | Plan 1 | Plan 2 | Post Grad |
| Threshold | Threshold | Threshold | |
| Tax year 2016/17 | £17,495 | £21,000 | |
| Tax year 2017/18 | £17,775 | £21,000 | |
| Tax year 2018/19 | £18,330 | £25,000 | |
| Tax year 2019/20 | £18,935 | £25,725 | £21,000 |
| Tax year 2020/21 | £19,390 | £26,575 | £21,000 |
| Tax year 2021/22 | £19,895 | £27,295 | £21,000 |
| Repayment rate | 9% | 9% | 6% |
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Key Tax Rates for the UK
Below is a list of the Key tax rates and personal allowances for the self employed. There are plenty that have not been included in here such as dividend tax, tax on interest, corporation tax etc, but this will get you started. If you want to check out the official HMRC rates, then please go to >>> https://www.gov.uk/income-tax-rates| Main tax rates & allowances | ||||||
| 2016/2017 | 2017/2018 | 2018/2019 | 2019/2020 | 2020/2021 | 2021/2022 | |
| Personal Allowance | £11,000 | £11,500 | £11,850 | £12,500 | £12,500 | £12,570 |
| Personal allowance reduces once taxable income is above £100,000 | ||||||
| Marriage allowance | £1,100 | £1,150 | £1,185 | £1,250 | £1,250 | £1,257 |
| 10% personal allowance can be transferred between certain spouses where neither pay tax above the basic rate | ||||||
| Income Tax Rates – After personal allowance | ||||||
| Band £ | ||||||
| 0 to £37,700 | 20% | |||||
| £37701 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| Band £ | ||||||
| 0 to £37,500 | 20% | 20% | ||||
| £37501 to £150,000 | 40% | 40% | ||||
| Over £150,000 | 45% | 45% | ||||
| Band £ | ||||||
| 0 to £34,500 | 20% | |||||
| £34,501 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| Band £ | ||||||
| 0 to £33,500 | 20% | |||||
| £33,501 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| Band £ | ||||||
| 0 to £32,000 | 20% | |||||
| £32,001 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| National Insurance | ||||||
| Class 1 | 12% | 12% | 12% | 12% | 12% | 12% |
| Class 2 | £145.60 | £148.20 | £153.40 | £156.00 | £158.60 | £158.60 |
| Class 2 – Small profits | £5,965.00 | £6,025.00 | £6,205.00 | £6,365.00 | £6,475.00 | £6,515.00 |
| Class 3 (per week) | £14.10 | £14.25 | £14.65 | £15.00 | £15.30 | £15.40 |
| Class 4 – lower | 9% | 9% | 9% | 9% | 9% | 9% |
| Class 4 – upper | 2% | 2% | 2% | 2% | 2% | 2% |
| Class 4 – Lower Threshold | £8,060.00 | £9,164.00 | £8,424.00 | £8,632.00 | £9,500.00 | £9,568.00 |
| Class 4 – Upper Threshold | £43,000.00 | £45,000.00 | £46,350.00 | £50,000.00 | £50,000.00 | £50,270.00 |
| Income Tax Rates – Scotland only – After personal allowance | ||||||
| Band £ | ||||||
| 0 to £2,097 | 19% | |||||
| £2,098 to £12,726 | 20% | |||||
| £12,727 to £31,092 | 21% | |||||
| £31,092 to £150,000 | 41% | |||||
| Over £150,000 | 46% | |||||
| Band £ | ||||||
| 0 to £2,085 | 19% | |||||
| £2,086 to £12,658 | 20% | |||||
| £12,659 to £30,930 | 21% | |||||
| £30,931 to £150,000 | 40% | |||||
| Over £150,000 | 46% | |||||
| Band £ | ||||||
| 0 to £2,049 | 19% | |||||
| £2,050 to £12,444 | 20% | |||||
| £12,445 to £30,930 | 21% | |||||
| £30931 to £150,000 | 40% | |||||
| Over £150,000 | 46% | |||||
| Band £ | ||||||
| 0 to £2,000 | 19% | |||||
| £2,000 to £12,150 | 20% | |||||
| £12,515 to £31,580 | 21% | |||||
| £31,581 to £150,000 | 40% | |||||
| Over £150,000 | 46% | |||||
| Band £ | ||||||
| 0 to £31,500 | 20% | |||||
| £31,501 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| Band £ | ||||||
| 0 to £32,000 | 20% | |||||
| £32,001 to £150,000 | 40% | |||||
| Over £150,000 | 45% | |||||
| VAT thresholds from: | ||
| 1st April 2013 | £79,000 | |
| 1st April 2014 | £81,000 | |
| 1st April 2015 | £82,000 | |
| 1st April 2016 | £83,000 | |
| 1st April 2017 | £85,000 | |
| 1st April 2018 | £85,000 | |
| until 31st March 2024 | £85,000 | |
| Corporation Tax Rates from: | ||
| 1st April 2016 | 20% | |
| 1st April 2017 | 19% | |
| 1st April 2018 | 19% | |
| 1st April 2019 | 19% | |
| 1st April 2020 – onwards until April 2023 when it depends on profits | 19% | |
| Student Loan repayments | Plan 1 | Plan 2 | Post Grad |
| Threshold | Threshold | Threshold | |
| Tax year 2016/17 | £17,495 | £21,000 | |
| Tax year 2017/18 | £17,775 | £21,000 | |
| Tax year 2018/19 | £18,330 | £25,000 | |
| Tax year 2019/20 | £18,935 | £25,725 | £21,000 |
| Tax year 2020/21 | £19,390 | £26,575 | £21,000 |
| Tax year 2021/22 | £19,895 | £27,295 | £21,000 |
| Repayment rate | 9% | 9% | 6% |