| Allowances | 2021/22 | 2020/21 |
|---|---|---|
| Personal Allowance (PA)* | £12,570 | £12,500 |
| Marriage Allowance† | 1,260 | 1,250 |
| Blind Person’s Allowance | 2,520 | 2,500 |
| Rent a room relief** | 7,500 | 7,500 |
| Rent a room relief** | 1000 | 1000 |
| Property income** | 1000 | 1000 |
* PA will be withdrawn at £1 for every £2 by which ‘adjusted income’ exceeds £100,000.
There is no allowance given above £125,140
† The part of the PA that is transferable to a spouse or civil partner who is not a higher or top rate taxpayer.
** If gross income exceeds it, the limit may be deducted instead of actual expenses.
| Rate bands | 2021/22 | 2020/21 |
|---|---|---|
| Basic rate band (BRB) | £37,700 | £37,500 |
| Higher Rate Band (HRB) | 37,701 – 150,000 | 37,501 – 150,000 |
| Additional rate | Over 150,000 | Over 150,000 |
| Personal Savings Allowance (PSA) | 7,500 | 7,500 |
| – Basic rate taxpayer | 1000 | 1000 |
| – Higher rate taxpayer | 500 | 500 |
| Dividend Allowance (DA) | 2,000 | 2,000 |
BRB and additional rate threshold are increased by personal pension contributions (up to permitted limit) and Gift Aid donations.
| Tax rates | 2021/22 and 2020/21 | ||
|---|---|---|---|
| Rates differ for General, Savings and Dividend income | G | S | D |
| Basic rate | 20% | 20% | 7.5% |
| Higher rate | 40% | 40% | 32.5% |
| Additional rate | 45% | 45% | 38.1% |
General income (salary, pensions, business profits, rent) usually uses personal allowance, basic rate and higher rate bands before savings income (interest). Scottish taxpayers are taxed at different rates on general income (see below).
To the extent that savings income falls in the first £5,000 of the basic rate band, it is taxed at nil rather than 20%.
The PSA taxes interest at nil, where it would otherwise be taxable at 20% or 40%.
Dividends are normally taxed as the ‘top slice’ of income. The DA taxes the first £2,000 of dividend income at nil, rather than the rate that would otherwise apply.
| Income tax – Scotland 2021/22* | Band | Rate |
|---|---|---|
| Starter Rate | £2,097 | 19% |
| Basic Rate | 2,098 – 12,726 | 20% |
| Intermediate Rate | 12,727 – 31,092 | 21% |
| Higher Rate | 31,093 – 150,000 | 41% |
| Top Rate | over 150,000 | 46% |
The Scottish rates and bands do not apply for savings and dividend income, which are taxed at normal UK rates.
1% of child benefit for each £100 of adjusted net income between £50,000 and £60,000.
| Remittance basis charge | 2021/22 | 2020/21 |
|---|---|---|
| For non-UK domiciled individuals who have been UK resident in at least: |
||
| 7 of the preceding 9 tax years | £30,000 | £30,000 |
| 12 of the preceding 14 tax years | 60,000 | 60,000 |
| 15 of the preceding 20 tax years | Deemed to be UK domiciled | |
You are advised to consult us before acting on any information contained herein.
| Registered Pensions | 2021/22 | 2020/21 |
|---|---|---|
| Lifetime allowance (LA) | £1,073,100 | £1,073,100 |
| Annual allowance (AA)* | 40,000 | 40,000 |
Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600.
* Usually tapered (down to a minimum of £4,000) when adjusted income exceeds £240,000.
| State pension (per week) | 2021/22 | 2020/21 |
|---|---|---|
| Old state pension – Single person | £137.60 | £134.25 |
| Old state pension – Married couple | 220.05 | 214.70 |
| New state pension† | 179.60 | 175.20 |
† applies to those reaching state retirement age after 5 April 2016.
You are advised to consult us before acting on any information contained herein.
| 2021/22 | 2020/21 | |
|---|---|---|
| Individual Savings Account (ISA) | ||
| – Overall limit | £20,000 | £20,000 |
| – Lifetime ISA | 4,000 | 4,000 |
| Junior ISA | 9,000 | 9,000 |
| EIS* – 30% relief | 2,000,000 | 2,000,000 |
| EIS eligible for CGT deferral relief | Unlimited | Unlimited |
| Seed EIS (SEIS) – 50% relief | 100,000 | 100,000 |
| SEIS – 50% exemption for reinvested gains | 100,000 | 100,000 |
| Venture Capital Trust (VCT) – 30% relief | 200,000 | 200,000 |
You are advised to consult us before acting on any information contained herein.
| Employee | Employer | |
|---|---|---|
| Main NIC rate | 12.0% | 13.8% |
| No NIC on first | £184pw | £170pw |
| Main rate* charged up to | £967pw | no limit |
| 2% rate on earnings above | £967pw | N/A |
| Employment allowance per business** | N/A | £4,000 |
* Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £967pw.
** Some businesses do not qualify, including certain sole director companies and employers who have an employer’s class 1 NIC liability of £100,000 or more for 2020/21s.
Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).
You are advised to consult us before acting on any information contained herein.
Taxable benefit: Chargeable value multiplied by chargeable %.
Initial list price of car (including most accessories), reduced by any capital contribution (maximum £5,000) by employee when the car is first made available.
| CO2 emissions g/km* | Electric range miles | Pre 6.04.2020 | Post 5.04.2020 |
|---|---|---|---|
| 0 | N/A | 1% | 1% |
| 1-50 | >130 | 2% | 1% |
| 1-50 | 70-129 | 5% | 4% |
| 1-50 | 40-69 | 8% | 7% |
| 1-50 | 30-39 | 12% | 11% |
| 1-50 | <30 | 14% | 13% |
| 51-54 | N/A | 15% | 14% |
Then a further 1% for each 5g/km CO2 emissions, up to a maximum of 37%.
Diesel cars that are not RDE2 standard suffer a 4% supplement on the above figures but are still capped at 37%
Chargeable value of £3,500 (2020/21 £3,490) if private use is more than home-to-work. Zero emission vans charged at £Nil (2020/21: £2,792).
Employer provides fuel for private motoring in an employer-owned:
Car: CO2-based percentage from above table multiplied by £24,600 (2020/21 £24,500).
Van: £669 (2020/21 £666).
Employee contributions do not reduce taxable figure unless all private fuel is paid for by the employee (in which case there is no benefit charge).
You are advised to consult us before acting on any information contained herein.
| Employee’s own transport | per business mile |
|---|---|
| Cars first 10,000 miles | 45p |
| Cars over 10,000 miles | 25p |
| Business passengers | 5p |
| Motorcycles | 24p |
| Bicycles | 20p |
You are advised to consult us before acting on any information contained herein.
| 2021/22 | 2020/21 | |
|---|---|---|
| Annual exemption | ||
| Individuals, estates | £12,300 | £12,300 |
| Most trusts | 6,150 | 6,150 |
| Tax rate | ||
| Individual (to basic rate limit)* | 10% | 10% |
| Individual (above basic rate limit)* | 20% | 20% |
| Trusts, estates* | 20% | 20% |
| Entrepreneurs’ Relief (ER)** | 10% | 10% |
| Investors’ Relief (IR)*** | 10% | 10% |
* Individuals are taxed at 18%/28% on gains on residential property and receipts of carried interest. Trusts and estates are taxed at 28% in these circumstances.
** Lifetime limit for qualifying gains: BADR £1m; IR £10m
You are advised to consult us before acting on any information contained herein.
| Year to | 31.3.2022 |
|---|---|
| Corporation Tax rate | 19% |
| Research and development relief | From 1.1.2021 |
|---|---|
| SME enhanced expenditure deduction scheme* |
130% |
| Large company R&D Expenditure Credit (RDEC) scheme** |
13% |
* Additional deduction for qualifying R&D
** Taxable expenditure credit for qualifying R&D
SMEs that make losses can surrender the deduction to HMRC in exchange for a payment of 14.5% of the loss (capped at £20,000 plus 3 x PAYE & NIC for periods beginning from 1.4.21).
You are advised to consult us before acting on any information contained herein.
| Plant and machinery allowances | Rate | |
|---|---|---|
| Annual Investment Allowance (AIA) | ||
| – expenditure 1.1.19 – 31.12.21 | £1,000,000 | 100% |
| – expenditure from 1.1.22 | 200,000 | 100% |
| Energy/water-efficient equipment | 100% | |
| Writing down allowance: general pool (reducing balance) | 18% | |
| Writing down allowance: special rate pool (reducing balance)* | 6% | |
| Motor cars purchased | |||
|---|---|---|---|
| From 1.4.21 CO2 (g/km) |
Pre 1.4.21 CO2 (g/km) |
Allowance | |
| New cars only | Nil | up to 50 | 100% |
| In general pool | up to 50 | up to 110 | 18% pa |
| In special rate pool* | above 50 | above 110 | 6% pa |
| Structures and buildings allowance | |
|---|---|
| Fixed deduction per annum | 3% |
You are advised to consult us before acting on any information contained herein.
ATED applies to ‘high value’ residential properties owned via a corporate structure, unless the property is used for a qualifying purpose.
| Property value | Annual charge to | |
|---|---|---|
| 31.3.2022 | 31.3.2021 | |
| £0.5m – £1m | £3,700 | £3,700 |
| £1m – £2m | 7,500 | 7,500 |
| £2m – £5m | 25,300 | 25,200 |
| £5m – £10m | 59,100 | 58,850 |
| £10m – £20m | 118,600 | 118,050 |
| Over £20m | 237,400 | 236,250 |
Residential property (1st property only)
| SDLT – England & NI £000 |
Rate on band | LBTT – Scotland £000 |
Rate on band | LTT – Wales £000 |
Rate on band |
|---|---|---|---|---|---|
| Up to 125* | Nil | Up to 145 | Nil | Up to 180** | Nil |
| 125 – 250 | 2% | 145 – 250 | 2% | 180 – 250 | 3.5% |
| 250 – 925 | 5% | 250– 325 | 5% | 250 – 400 | 5.0% |
| 925 – 1,500 | 10% | 325 – 750 | 10% | 400 – 750 | 7.5% |
| Over 1,500 | 12% | Over 750 | 12% | 750 – 1,500 | 10.0% |
| Over 1,500 | 12.0% |
*Nil band rate up to 30.6.21 is £500,000, between 1.7.21 – 30.9.21 is £250,000.
**Nil rate band up to 30.6.21 is £250,000.
A supplement applies to all three taxes where an additional residential property is purchased for more than £40,000 (unless replacing a main residence). It is also payable by all corporate purchasers. The rate is 3% (LBTT and LTT: 4%) of the total purchase price.
SDLT: From 1.7.21, First-time buyers purchasing a property of up to £500,000 pay a nil rate on the first £300,000 of purchase price.
LBTT: First-time buyers relief increases the nil rate band to £175,000 from 1.4.21.
SDLT: A rate of 15% may apply to the total purchase price, where the property is valued above £500,000 and purchased by a ‘non-natural person’ (e.g. a company).
Non-residential or mixed use property
| SDLT – England & NI £000 |
Rate on band | LBTT – Scotland £000 |
Rate on band | LTT – Wales £000 |
Rate on band |
|---|---|---|---|---|---|
| Up to 150 | Nil | Up to 150 | Nil | Up to 225 | Nil |
| 150 – 250 | 2% | 150 – 250 | 1% | 225 – 250 | 1% |
| Over 250 | 5% | Over 250 | 5% | 250 – 1,000 | 5% |
| Over 1,000 | 6% |
You are advised to consult us before acting on any information contained herein.
| Standard rate (1/6 of VAT-inclusive price) | 20% |
| Tourism and hospitality sector up to 30.9.21 | 5% |
| Tourism and hospitality sector 1.10.21 to 31.3.22 | 12.5% |
| Registration level from 1.4.2017 | £85,000 per annum |
| Deregistration level from 1.4.2017 | 83,000 per annum |
| Annual taxable turnover to enter scheme | Up to £150,000 |
| Must leave scheme if annual taxable turnover | Exceeds £230,000 |
| Annual taxable turnover to enter scheme | Up to £1.35m |
| Must leave scheme if annual taxable turnover | Exceeds £1.60m |
Notify HMRC within 30 days.
You are advised to consult us before acting on any information contained herein.
| 2021/22 | 2020/21 | |
|---|---|---|
| Nil rate band (NRB)* | £325,000 | £325,000 |
| NRB Residential enhancement (RNRB)†* | 175,000 | 175,000 |
| Rate of tax above nil rate band** | 40% | 40% |
| Lifetime transfers to most trusts | 20% | 20% |
† RNRB is available for transfers of a main residence to direct descendents. It tapers away at the rate of £1 for every £2 of estate value above £2m.
* Up to 100% of the proportion of a deceased spouse’s/civil partner’s unused NRB and RNRB band may be claimed to increment the current NRB and RNRB when the survivor dies.
** Rate reduced to 36% if at least 10% of the relevant estate is left to charity. Unlimited exemption for transfers between spouses/civil partners, except if UK domiciled transferor and foreign domiciled transferee, where maximum exemption £325,000.
100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland/buildings.
| Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
| % of full death tax charge payable | 100 | 80 | 60 | 40 | 20 |
You are advised to consult us before acting on any information contained herein.
| Self assessment | 2021/22 | 2020/21 | |
|---|---|---|---|
| 1st payment on account | 31 January | 2022 | 2021 |
| 2nd payment on account | 31 July | 2022 | 2021 |
| Balancing payment | 31 January | 2023 | 2022 |
| Capital Gains Tax* | 31 January | 2023 | 2022 |
*UK residential property: CGT due within 30 days of completion.
| Class 1A NIC | 19 July | 2022 | 2011 |
| Class 1B NIC | 19 October | 2022 | 2021 |
Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a ‘large’ company paying by quarterly instalments.
| Issue P60s to employees | 31 May 2021 |
| P11D, P11D(b) | 6 July 2021 |
| Self assessment tax return (SATR) paper version | 31 October 2021 |
| Online SATR if outstanding tax to be included in 2020/21 PAYE code |
30 December 2021 |
| Online SATR | 31 January 2022 |
You are advised to consult us before acting on any information contained herein.
| National Minimum Wage Rates per hour |
From 1.04.21 | From 1.04.22 |
|---|---|---|
| Aged 23 and over (National Living Wage) | £8.91 | £9.50 |
| Aged 21 – 22 | 8.36 | 9.18 |
| Aged 18 – 20 | 6.56 | 6.83 |
| Under 18 | 4.62 | 4.81 |
| Apprentices | 4.30 | 4.81 |
| Child Benefit (per week) | 2021/22 | 2020/21 |
|---|---|---|
| First eligible child | £21.15 | £21.05 |
| Each subsequent child | £14.00 | 13.95 |
You are advised to consult us before acting on any information contained herein.
