Tax Rates

This Page is under Construction

 

 Main Income Tax Reliefs
 Car Benefits
 National Insurance Contributions
 Pension Contributions
 Inheritance Tax
 Value Added Tax – VAT
 Capital Gains Tax – CGT
 Corporation Tax
 Stamp Duty
 Earliest Due Dates for Payment of Tax

Main Income Tax Reliefs

Band Taxable income Tax rate
Personal Allowance Up to £11,850 0%
Basic rate £11,851 to £46,350 20%
Higher rate £46,351 to £150,000 40%
Additional rate over £150,000 45

Personal AllowanceIncome tax bands are different if you live in Scotland

 

Car Benefits

The car benefit is calculated at a percentage of the new car’s list price. The list price includes accessories. There is no upper limit for the list price. List price is reduced for capital contributions made by the employee up to £5,000. Special rules may apply to cars provided for disabled employees.

The percentages can be seen in the table below and are based on the car's CO2 emissions in grams per kilometre up to a maximum of 37%. For diesel cars add a 4% supplement, but the maximum is still 37%. Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt from the diesel supplement.

For cars registered before 1 January 1998 and cars with no agreed CO2 emissions the charge is based on engine size.

Car Tax allowance

Car fuel benefit charge multiplier

Car fuel benefit applies if an employee has the benefit of private fuel for a company car. The benefit is calculated by applying the percentage used to calculate the car benefit to a 'fuel charge multiplier'. The charge does not apply to certain environmentally-friendly cars. The fuel benefit is reduced to nil only if the employee pays for all private fuel.

The fuel benefit charge for:

2018/19 - £23,400
2019/20 - £24,100

Find more information at: gov.uk/expenses-and-benefits-company-cars

Advisory fuel rates for company cars

Advisory rates apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.

If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.

Advisory Fuel Rates

Mileage Allowance Payments (MAP)
MAP per business mile for business Travel in employees own car.

MAP Fuel Rates

National insurance Contributions

Employee National Insurance rates

This table shows how much employers deduct from employees’ pay for the 2018 to 2019 tax year.

Category letter £116 to £162 a week (£503 to £702 a month) £162.01 to £892 a week (£702.01 to £3,863 a month) Over £892 a week (£3,863 a month)
A 0% 12% 2%
B 0% 5.85% 2%
C N/A N/A N/A
H 0% 12% 2%
J 0% 2% 2%
M 0% 12% 2%
Z 0% 2% 2%

 

Employer National Insurance rates

This table shows how much employers pay towards employees’ National Insurance for the 2018 to 2019 tax year.

Category letter £116 to £162 a week (£503 to £702 a month) £162.01 to £892 a week (£702.01 to £3,863 a month) Over £892 a week (£3,863 a month)
A 0% 13.8% 13.8%
B 0% 13.8% 13.8%
C 0% 13.8% 13.8%
H 0% 0% 13.8%
J 0% 13.8% 13.8%
M 0% 0% 13.8%
Z 0% 0% 13.8%