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UK PAYE Tax Rates and Allowances 2020/21

This page contains all of the personal income tax changes which were published on the gov.uk site on Fri 28 Feb 2020. These rates come into effect at the start of the new tax year, on April 6th 2020.

Personal PAYE Allowances

Allowance2019/202020/21Change
Basic £12,500 £12,500 0
People born between 6th April 1938 - 5th April 1948 £12,500 £12,500 0
People born before 6th April 1938 £12,500 £12,500 0
Married Couples Allowance ( if born before 6th April 1935) £8,695  £8.695  0
Blind Person's Allowance £2,390  £2,390  0
Marriage Allowance* £1,190  £1,190  0
*An individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit.

Tax Brackets

Tax Rate2019/202020/21Change
Basic rate 20% TFA - £37,500 TFA - £37,500  no change
Higher Rate 40% TFA - £37,500 - £150,000 £37,501 - £150,000  no change
Additional Rate 45% £150,001+   no change
NOTES:
TFA: Tax Free Allowance amount - you only start paying the basic rate of tax once your earnings go above your tax free allowance.
These rates are applied after your tax free allowance has been deducted from your gross wage.

No changes to the Basic Rate tax bracket and no increases in the Basic Personal Allowance means little defference on the personal tax front in 2020/21. Both the Higher and the Additional Rates see no change either for the coming tax year.

Change in take home pay after tax and NI

Gross WageNet Pay 2019/20Net Pay 2020/21Difference
£10,000 £9,836  £9,940 +£104
£20,000 £17,137  £17,241 +£104
£30,000 £23,937  £24,041 +£104
£40,000 £30,737  £30,841 +£104
£50,000 £37,537  £37,641 +£104
£75,000 £52,039  £52,143 +£104
£100,000 £66,539  £66,643 +£104
£125,000 £76,039  £76,143 +£104
£150,000 £90,536  £90,640 +£104
Source listentotaxman.com®

National Insurance Rates

There have been no changes to the percentage of National Insurance Class 1 contributions, they remain at 12% for employees, and 2% above the upper earnings limit. Employers Class 1 have remained the same at 13.8%. The limits and thresholds have changed, as illustrated in the table below.

National Insurance Bands

Description2019/202020/21Change
Weekly Lower earnings limit, primary Class 1 £118  £120  +2
Weekly Upper earnings limit, primary Class 1 £962  £962  0
Weekly Primary threshold £166  £183  +17
Weekly Secondary threshold £166  £169 +3
Weekly Upper Secondary Threshold for U21s £962  £962 0
Apprentice Upper Secondary Threshold for U25s £962  £962 0
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This article was published in our Tax Rates & Tables section on 03/03/2020.

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