INCOME TAX RATES AND PERSONAL ALLOWANCES
– Personal Allowance: £12.500 per year (for people with income limit of £100,000).
– Basic tax rate (currently up to £50,000): 20%.
– Higher tax rate (currently between £50,000 and £150.000): 40%.
– Additional tax rate (currently above £150.000): 45%.
– Personal Allowance for dividends: £2.000 per year.
– Basic tax rate (£50,000) for dividends (with tax advantage of Personal Allowance for dividends £2.000): 7.5%.
– Higher tax rate for dividends (£50,000 – £150.000): 32.5%.
– Additional tax rate for dividends (above £150.000): 38.1%.
– Maximum amount of allowance in National Insurance Contribution class 1 from employer for employers that employee more than 1 director: £3.000 per year.
– NI class 2 wager for self-employed: £3/week (full allowance with income smaller than £6,365 per year).
– NI class 4 wager for self-employed: 9% for income between £8.632 and £50.000 per year.
– NI class 4 wager for self-employed: 2% from income above £50.000 per year.
If you are thinking about starting your own business, first you need to decide whether you will become self-employed or set up a Limited Liability Company- Ltd.
Ask us for advice if you have doubts which alternative is best for you!
Check if you apply for tax rebate in Great Britain.
Use our tax calculator!