01993 775063
info@brownsaccountancy.co.uk
01993 775063
info@brownsaccountancy.co.uk
BR - All income is taxed at the basic rate (currently 20%).
OT - All income is taxed at the appropriate rate with no personal allowance. This is used often where there is a 2nd job.
DO - All income is taxed at the Higher Rate of tax (currently 40%). Often used for a 2nd job or pension.
D1 - All income is taxed at the additional rate of tax (currently 45%). Often used for a 2nd job or pension.
NT - No tax is taken from income.
L - Basic Personal Allowance has been applied.
T - HMRC need to review the code.
M - Marriage Allowance - you've received 10% of your partner's Personal Allowance
N - Marriage Allowance - you've transferred 10% of your Personal Allowance to your partner
K - Total allowances are less than total deductions, effectively a negative code.
S - Your income is taxed using the rates in Scotland
C - Your income is taxed using the rates in Wales
Note: Notices of codings are no longer copied to your Tax Agent due to HMRC cost cutting measures so please ensure you provide your agent with a copy so that they can check that the correct code is being applied.
| 2021/22 | Taxable Income | Income Rate | Dividend Rate |
|---|---|---|---|
| Starting Savings Rate * | 0 - 5,000 | 0% | 0% |
| Basic Rate | 0 - 37,700 | 20% | 7.5% |
| Higher Rate | 37,701- 150,000 | 40% | 32.5% |
| Additional Rate | > 150,000 | 45% | 38.1% |
Child Benefit charge from 7/1/2013 is 1% of benefit for each £100 of income for the tax year between £50,000-£60,000.
* The starting savings rate only applies to savings income. If an individual's taxable non-savings income is above the starting rate limit, then the starting rate for savings will not be available for savings income.
Dividend Allowance £2,000 (2020/21 £2,000) effectively taxed at 0%
For 2021/22 for Scottish taxpayers the basic rate band is £31,092 (2020/21 £30,930). This applies only to non-savings, non-dividend income.
| 2020/21 | Taxable Income | Income Rate | Dividend Rate |
|---|---|---|---|
| Starting Savings Rate * | 0 - 5,000 | 0% | 0% |
| Basic Rate ** | 0 - 37,500 | 20% | 7.5% |
| Higher Rate | 37,501- 150,000 | 40% | 32.5% |
| Additional Rate | > 150,000 | 45% | 38.1% |
* The starting savings rate only applies to savings income. If an individual's taxable non-savings income is above the starting rate limit the 0% starting rate will not apply.
** For 2021/22 for Scottish taxpayers the basic rate band is £31092 (2020/21 £30,930). This applies only to non-savings, non-dividend income.
| Income Tax Reliefs | 2021/22 | 2020/21 |
|---|---|---|
| Personal Allowance | 12,570 | 12,500 |
| Personal Allowance – if born before 6/4/1935 | 12,570 | 12,500 |
| (reduce PA by £1 for every £2 adjusted net income over £100,000) | ||
| Married Couple's Allowance (relief 10%) if born before 6/4/1935 | 9,125 | 9,075 |
| Married Couple's Allowance (relief 10%) minimum amount | 3,530 | 3,510 |
| Age Allowance Income Limit - (reduce allowance by £1 for every £2 of adjusted net income over threshold) | 30,400 | 30,200 |
| Transferable Tax allowance for married couples & civil partners | 1,260 | 1,250 |
| Dividend Allowance (0% rate to income within the allowance) | 2,000 | 2,000 |
| Savings Allowance – Basic rate taxpayers (0% rate to income within the allowance) | 1,000 | 1,000 |
| Savings Allowance – Higher rate taxpayers (0% rate to income within the allowance) | 500 | 500 |
| Trading Allowance | 1,000 | 1,000 |
| Property Income Allowance | 1,000 | 1,000 |
| Rent a Room limit | 7,500 | 7,500 |
| Corporation Tax Rates | 2021/22 | 2020/21 |
|---|---|---|
| Corporation Tax | 19% | 19% |
| Capital Gains Tax | 2021/22 | 2020/21 |
|---|---|---|
| Annual exemption | 12,300 | 12,300 |
| Tax rate – to basic rate limit | 10% | 10% |
| Tax rate – above basic rate | 20% | 20% |
| Tax rate – to basic rate limit (on residential property) | 18% | 18% |
| Tax rate – above basic rate limit (on residential property) | 28% | 28% |
| Entrepreneurs Relief – up to lifetime limit of £10 million | 10% | 10% |
| Value Added Tax | 2021/22 | 2020/21 |
|---|---|---|
| VAT Registration Threshold | 85,000 | 85,000 |
| Rate | 20% | 20% |
31 July 2021 - 2nd payment on account for 2021/22
5 October 2021 - Deadline for notifying HMRC of new sources of income if no tax return issued for 2020/21
31 October 2021 - Deadline for submission of 2020/21 paper returns.
31 January 2022 - Deadline for filing electronic returns for 2020/21. Balancing payment for 2020/21 and 1st payment on account for 2021/22
19 May - Final RTI submission due to HMRC for year to 5 April 2021
31 May - Forms P60 due to employees for year to 5 April 2021
6 July - Forms P11d, P9d, P11d (b) due to HMRC (with copies to employees) for year ended 5 April 2021
19 July - Class 1A NIC due for year ended 5 April 2021
19 October - Class 1B NIC due for year ended 5 April 2021