Here is a reminder of the thresholds for the current tax year (6th April 2020 - 5th April 2021)
Personal Allowance
You do not have to pay any tax on income up to the amount of £12,500.
|
Band
|
Taxable income
|
Tax rate
|
|
Personal Allowance
|
Up to £12,500
|
0%
|
|
Basic rate
|
£12,501 to £50,000
|
20%
|
|
Higher rate
|
£50,001 to £150,000
|
40%
|
|
Additional rate
|
over £150,000
|
45%
|
National Minimum Wage
It is against the law to pay under the national minimum wage.
|
Year
|
25 and over
|
21 to 24
|
18 to 20
|
Under 18
|
Apprentice
|
|
April 2020 (current rate)
|
£8.72
|
£8.20
|
£6.45
|
£4.55
|
£4.15
|
|
April 2019 to March 2020
|
£8.21
|
£7.70
|
£6.15
|
£4.35
|
£3.90
|
Dividend Allowance
The dividend allowance for this current year is £2,000
|
Tax band
|
Tax rate on dividends over the
allowance
|
|
Basic rate
|
7.5%
|
|
Higher rate
|
32.5%
|
|
Additional rate
|
38.1%
|
There are many more rates and threshold that will be of value when it comes to your tax affairs, we have highlighted the most frequent rates.
