Income Tax
| Band | 2023 – 24 | 2022 – 23 | ||||
|---|---|---|---|---|---|---|
| Taxable Income | Rate % | Dividend Rate % | Taxable Income | Rate % | Dividend Rate % | |
| Personal Allowance | Up to £12,570 | 0% | 0% | £12,570 | 0% | 0% |
| Basic rate | £12,571 to £ 50,270 | 20.0% | 8.75% | £37,700 | 20.0% | 8.75% |
| Higher rate | £50,271 to £125,140 | 40.0% | 33.75% | £37,701 to £150,000 | 40.0% | 33.75% |
| Additional rate | Over £125,140 | 45.0% | 39.35% | Over £150,000 | 45.0% | 39.35% |
| Personal Savings Allowance (PSA) | ||||||
| Basic rate taxpayer | £1,000 | £1,000 | ||||
| Higher rate taxpayer | £500 | £500 | ||||
| Allowances | 2023-24 | 2022-23 | |
|---|---|---|---|
| Dividend Allowance (DA) | £1,000 | £2,000 | |
| Personal Allowance (PA) | (A) | £12,570 | £12,570 |
| Marriage Allowance | (B) | £1,260 | £1,260 |
| Blind Person’s Allowance | £2,870 | £2,600 | |
| Rent a room relief | (C) | £7,500 | £7,500 |
| Trading Income | (C) | £1,000 | £1,000 |
| Property Income | (C) | £1,000 | £1,000 |
|
(A) The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero. (B) The part of the PA that is transferable to a spouse or civil partner who is not a higher or additional rate taxpayer. (C) If gross income exceeds this, the limit may be deducted instead of actual expenses. |
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| BRB and additional rate threshold are increased by personal pension contributions (up to permitted limit) and Gift Aid donations. | |||
General income (salary, pensions, business profits, rent) usually uses personal allowance, basic rate and higher rate bands before savings income (mainly interest). 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. |
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National Insurance Contributions
| Class 1 (Employees) | Employee | Employer |
|---|---|---|
| Main NIC rate | 12% | 13.8% |
| No NIC on first | £242pw | £175pw |
| Main rate charged up to (A) | £967pw | no limit |
| 2% rate on earnings above | £967pw | N/A |
| Employment allowance per business (B) | N/A | £5,000 |
|
(A) Nil rate of employer NIC on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment (B) 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 2022/23. 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). |
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| Class 2 (Self-employed) | ||
| Flat rate per week if profits above £12,570 | £3.45 | |
| Small profits threshold | £6,725 | |
| Class 3 (Voluntary) | ||
| Class 3: Flat rate per week | £17.45 | |
| Class 4 (Self-employed) | ||
| On profits between £12,570 and £50,270 | 9% | |
| On profits over £50,270 | 2% | |
Capital Gains Tax
| Details | 2023-24 | 2022-23 |
|---|---|---|
| Annual exempt amount | ||
| Individuals, estates, etc | £6,000 | £12,300 |
| Trusts generally | £3,000 | £6,150 |
| Tax rate | ||
| Individual (to basic rate limit) | 10% (A) | 10% (A) |
| Individual (above basic rate limit) | 20% (A) | 20% (A) |
| Trusts, estates | 20% (A) | 20% (A) |
| Business Asset Disposal Relief (BADR) | 10% (B) | 10% (B) |
| Investors’ Relief (IR) | 10% (C) | 10% (C) |
|
(A) Except for carried interest and chargeable gains on residential property which are taxed at 18% up to the basic rate limit and 28% above the basic rate limit. (B) For trading businesses and companies (minimum 5% employee or director shareholding) held for at least one year. (C) Shares in an unquoted trading company may qualify on lifetime gains up to £10m. |
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Corporation Tax
| Year to | 2023-24 | 2022-23 | |
|---|---|---|---|
| Corporation Tax rate | 25.00% | 19.00% | |
Research and development relief
| 2023-24 | 2022-23 | ||
|---|---|---|---|
| SME enhanced expenditure deduction scheme | (1) | 86% | 130% |
| Large company R&D Expenditure Credit (RDEC) scheme | (2) | 20% | 13% |
|
(1) Additional deduction for qualifying R&D. (2) 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). |
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Value Added Tax
| Details | Current Rate (2023-24) |
|---|---|
| Standard rate (1/6 of VAT-inclusive price) | 20% |
| Tourism and hospitality sector reduced rate – from 1.10.21-31.3.22 | 12.5% |
| Taxable Turnover Limits | |
| Registration level - Taxable turnover | £85,000 per annum |
| Deregistration level - Taxable turnover | £83,000 per annum |
| Flat Rate Scheme (FRS) | |
| Annual taxable turnover to enter scheme | Up to £150,000 |
| Must leave scheme if annual gross turnover | Exceeds £230,000 |
| If using FRS, the VAT paid by the business is a fixed percentage (based on business category) of ‘FRS turnover’ rather than the net of output tax over input tax. Input tax is usually not recoverable. | |
| Cash accounting and Annual accounting schemes | |
| Annual taxable turnover to enter scheme | Up to £1.35m |
| Must leave scheme if annual taxable turnover | Exceeds £1.60m |
Basic State Pension
| State pension (per week) | 2023 – 24 | 2022 – 23 |
|---|---|---|
| Old state pension | £156.20 | £141.85 |
| New state pension * | £203.85 | £185.15 |
| * Applies to those reaching state retirement age after 5 April 2016. | ||
Car Benefit For Employees
Taxable benefit: List price of car multiplied by chargeable percentage.
| CO2 g/km | Electric Range (miles) | 2023-24 | 2022-23 |
|---|---|---|---|
| 0 | N/A | 2% | 2% |
| 1-50 | >130 | 2% | 2% |
| 1-50 | 70-129 | 5% | 5% |
| 1-50 | 40-69 | 8% | 8% |
| 1-50 | 30-39 | 12% | 12% |
| 1-50 | <30 | 14% | 14% |
| 51-54 | N/A | 15% | 15% |
| 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%. | |||
Fuel Benefit
| FUEL BENEFIT | 2023-24 | 2022-23 |
|---|---|---|
| Multiply the CO2% used for the car benefit by | £27,800 |
£25,300 |
| Vans – Fixed charge | £3,960 | £3,600 |
| Vans – Fuel benefit (if fuel is provided by the employer for private travel) |
£757 | £688 |
| Zero-emission vans charged | £0 | £0 |
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). |
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Child Trust Fund
The Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011.
The money in the CTF account belongs to the child but can’t be taken out until they are 18.
Parents, family and friends can add money to the account up to a limit of £9,000 in the 2023 to 2024 tax year.
You can’t apply for a new Child Trust Fund because the scheme is now closed. You can apply for a Junior ISA instead.
JUNIOR ISA
You can’t have a Junior ISA as well as a Child Trust Fund. If you want to open a Junior ISA ask the provider to transfer the trust fund into it.
The money in the Junior ISA account belongs to the child. The child can take control of the account when they’re 16 but can’t withdraw until they are 18.
Your child can only have:
- 1 cash Junior ISA
- 1 stocks and shares Junior ISA
Anyone (including child) can pay money into a Junior ISA, but the total amount paid in can’t go over £9000 in the 2023 to 2024 tax year.
Company Cars Advisory Fuel Rates
| (Effective from 01 March 2023) for employee private mileage reimbursement or employer reimbursement of business mileage in company cars |
|
|---|---|
| Engine Size | Petrol – rate per mile |
| 1400cc or less | 13p |
| 1401cc – 2000cc | 15p |
| Over 2000cc | 23p |
| Engine Size | LPG – rate per mile |
| 1400cc or less | 10p |
| 1401cc – 2000cc | 11p |
| Over 2000cc | 17p |
| Engine Size | Diesel – rate per mile |
| 1600cc or less | 13p |
| 1601cc – 2000cc | 15p |
| Over 2000cc | 20p |
Employee Share Scheme Limits
| 2023-24 | |
|---|---|
| Share incentive plans | |
| Employer contributions | £3,600 |
| Employer matching | (2:1) |
| Employee | £1,800 |
| Enterprise management incentive option value | £250,000 |
| Approved share option schemes option value | £30,000 |
| Savings-related share options per month (up to) | £500 |
Individual Savings Account (ISA)
| 2023-24 | 2022-23 | ||
|---|---|---|---|
| Overall limit | £20,000 | £20,000 | |
| Lifetime ISA | £4,000 | £4,000 | |
| Junior ISA | £9,000 | £9,000 | |
| Relief | |||
| EIS | 30% | £2,000,000 | £2,000,000 |
| Seed EIS (SEIS) | 50% | £200,000 | £100,000 |
| Venture Capital Trust (VCT) | 30% | £200,000 | £200,000 |
Inheritance tax
| Description | 2023-24 | 2022-23 | |||
|---|---|---|---|---|---|
| Nil rate band (NRB) | (1) | £325,000 | £325,000 | ||
| NRB Residential enhancement (RNRB) | (2) | £175,000 | £175,000 | ||
| Tax rate on death | (3) | 40% | 40% | ||
| Tax rate on lifetime transfers to most trusts | 20% | 20% | |||
(1) 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. (2) RNRB is available for transfers of a main residence to (broadly) direct descendants. It tapers away at the rate of £1 for every £2 of estate value above £2m. (3) 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. |
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| 100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland/buildings. | |||||
| Reduced tax charge on gifts within 7 years before death | |||||
| Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
| % of full death tax charge payable | 100 | 80 | 60 | 40 | 20< |
| Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient. | |||||
Main Capital And Other Allowances
| Plant and machinery allowances | Rate | |||
| Expenditure 1.4.23 - 31.3.24 (companies only) | ||||
| First-year allowance (main pool expenditure) | 100% | |||
| Super-deduction (main pool expenditure) | N/A | |||
| First-year allowance (special rate pool expenditure) | 50% | |||
| Annual Investment Allowance (AIA) | ||||
| expenditure 1.4.23 - 31.3.24 of up to £1m | 100% | |||
| New electric vans | 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) |
1.4.18 to 31.3.21 CO2 (g/km) |
Allowance | ||
| New cars only | Nil | up to 50 | 100% | |
| In general pool | up to 50 | up to 110 | 18% | |
| In special rate pool | above 50 | above 110 | 6% | |
| Structures and buildings allowance | ||||
| Fixed deduction per annum | 3% | |||
Main Due Dates For Tax Payment
| Payment dates | |||
|---|---|---|---|
| Self assessment | 2023/24 | 2022/23 | |
| 1st payment on account | 31 January | 2024 | 2023 |
| 2nd payment on account | 31 July | 2024 | 2023 |
| Balancing payment | 31 January | 2025 | 2024 |
| Capital Gains Tax (A) | 31 January | 2025 | 2024 |
| (A) A CGT return is due within 60 days of completion of sale of any UK land and buildings by a non-resident and of sale of UK residential property with a tax liability by a UK resident. Any CGT payable is also due within 60 days | |||
| Other payment dates | 2023/24 | 2022/23 | |
| Class 1A NIC | 19 July | 2024 | 2023 |
| Class 1B NIC | 19 October | 2024 | 2023 |
| Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a ‘large’ company paying by quarterly instalments. | |||
| 2022/23 Filing deadlines | 2023/24 | 2022/23 | |
| Issue P60s to employees | 31 May | 2023 | |
| P11D, P11D(b) | 6 July | 2023 | |
| Self Assessment Tax Return (SATR) | |||
| paper version | 31 October | 2023 | |
| Online SATR if outstanding tax to be included in 2024/25 PAYE code (if under £3,000) | 30 December | 2023 | |
| Online SATR | 31 January | 2024 | |
| A CGT return is due within 60 days of completion of sale of UK land and buildings by a non-resident and of sale of UK residential property with a tax liability by a UK resident. | |||
Working Tax Credit And Child Tax Credit
| Working Tax Credit for those without Children (£) | ||
|---|---|---|
| Annual income (£) | Single person aged 25 or over working 30 or more hours a week | Couple (working adults aged 25 or over ) working 30 or more hours a week |
| *11,700 | 795 | 2,615 |
| 12,000 | 485 | 2,495 |
| 13,000 | 75 | 2,085 |
| 14,000 | - | 1,675 |
| 15,000 | – | 1,265 |
| 16,000 | – | 855 |
| 17,000 | - | 445 |
| 18,000 | – | 35 |
| 19,000+ | - | – |
| * Someone aged 25 or over, working 30 hours a week on National Living Wage (Based on April 2017 rates) would earn £11,700 a year. | ||
| If you are in work and responsible for at least one child | |||
|---|---|---|---|
| Working and Child Tax Credit (£) | |||
|
Annual income (£) |
One child / Young person |
Two children / Young person |
Three children / Young person |
| (*1,*2) 6,240 | 7,300 | 10,080 | 12,865 |
| 11,700 | 5,945 | 8,725 | 11,510 |
| 15,000 | 4,595 | 7,375 | 10,155 |
| 20,000 | 2,545 | 5,325 | 8,105 |
| 25,000 | 495 | 3,275 | 6,055 |
| 30,000 | – | 1,225 | 4,005 |
| 35,000 | – | – | 1,955 |
| 40,000+ | – | – | – |
*1 – Those with incomes of £6,240 a year are assumed to work part-time working between 16 and 29 hours a week).
*2 – In families with an income of £11,700 a year or more, at least one adult is assumed to be working 30 hours or more a week (consistent with a minimum adult living wage of £7.50 (based on April 2016 rates) for those aged 25 and over).
Note: If you have a child with a disability you may be entitled to more.
The maximum amounts may be higher if you are entitled to the disability or childcare elements of Working Tax Credit.
| If you do not qualify for working tax credit | |||
|---|---|---|---|
| Child Tax Credit Only (£) | |||
| Annual income (£) | One child | Two children | Three children |
| No income | 3,330 | 6,110 | 8,890 |
| 5,000 | 3,330 | 6,110 | 8,890 |
| 8,000 | 3,330 | 6,110 | 8,890 |
| 10,000 | 3,330 | 6,110 | 8,890 |
| 15,000 | 3,330 | 6,110 | 8,890 |
| 20,000 | 1,730 | 4,515 | 7,295 |
| 25,000 | – | 2,465 | 5,245 |
| 30,000 | – | 415 | 3,195 |
| 35,000 | – | – | 1,145 |
| 40,000 | – | – | – |
Note: If you have a child with a disability you may be entitled to more.
Using this table, if your income is £15,000 a year and you have 2 children but are not eligible for Working Tax Credit, you could get an annual Child Tax Credit award of £6,110, equivalent to £117.50 a week.
Jobseeker Allowance
| Who is eligible for Jobseeker’s Allowance? | |
|---|---|
| To claim Jobseeker’s Allowance you need to be actively looking for work and: # over 18 but below State Pension age # unemployed or working fewer than 16 hours per week # living in England, Scotland or Wales Under 18s: you can’t get Jobseeker’s Allowance, except in special circumstances. Under 20s: you can’t get Jobseeker’s Allowance while you are in education and your parents are receiving Child Benefit for you. Full time students: you can’t usually get Jobseeker’s Allowance until your course has officially finished – check the date with your college or university. |
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| How much will you get paid? | |
| Depending on your circumstances you may be entitled to the following amounts: | |
| Age | Maximum weekly amount |
| 18 to 24 | up to £67.20 |
| 25 or over | up to £84.80 |
| Couples (both aged over 18) | up to £133.30 |
Registered Pensions
| 2023/24 | 2022/23 | |
|---|---|---|
| Lifetime Allowance (LA) | £1,073,100 | £1,073,100 |
| Annual Allowance (AA)* | £60,000 | £40,000 |
| Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600. | ||
| * Usually tapered down, to a minimum of £10,000 (2022/23: £4,000), when adjusted income exceeds £260,000 (2022/23: £240,000). | ||
Stamp Duties
Transfers of property are subject to stamp duty land tax at the following rates:
| Residential | Standard Rate (Single) |
Buy-to-let (Second home rate) |
|---|---|---|
| Value up to to £125,000 | 0% | 3% |
| Over £125,000* to £250,000 | 2% | 5% |
| Over £250,000 to £925,000 | 5% | 8% |
| Over £925,000 to £1,500,000 | 10% | 13% |
| Over £1,500,000** | 12% | 15% |
| The calculation of SDLT on purchase of non-residential property was changed from the whole transaction value to the same basis as residential (consideration falling within each band). | ||
| Commercial | Tax Rate | |
| Value up to £150,000 | 0% | |
| Over £150,000 to £250,000 | 2% | |
| Over £250,000 | 5% | |
| The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is generally payable at 0.5 per cent. If you buy stocks and shares for £1,000 or less you don’t normally have to pay any stamp duty. | ||
| New Leases | ||
|
Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV), with a single rate of 1% on residential NPV’s over £125,000 Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV) at 1% on non-residential NPV’s over £150,000 and this rises to 2% on leases with an NPV greater than £5m. VAT is excluded from treatment as consideration provided the landlord has not opted to charge VAT by the time the lease is granted. |
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| Lease premiums | ||
Duty on premiums is the same as for transfers of land. |
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Tax-Free Mileage Allowance
| A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows: | |
|---|---|
| Cars and vans: | |
| on the first 10,000 miles in the tax year | 45p per mile |
| on each additional mile above this | 25p per mile |
| Business passengers | 5p per mile |
| Motorcycles | 24p per mile |
| Bicycles | 20p per mile |
Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.
Rates of up to 5p per mile, per passenger, are also tax and NICs free when paid for the carriage of fellow employees on the same business trip. This also covers volunteers who drive for hospital car services etc, even though they are not strictly employees.