2020/21 Tax Rates and Allowances
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
| Allowance | 2020/21 | 2022/23 | Change |
|---|---|---|---|
| Basic | £12,500 | £12,570 | 0 |
| People born between 6th April 1938 - 5th April 1948 | £12,500 | £12,570 | 0 |
| People born before 6th April 1938 | £12,500 | £12,570 | 0 |
| Married Couples Allowance ( if born before 6th April 1935) | £9,125 | £9,415 | 300 |
| Blind Person's Allowance | £2,500 | £2,600 | 100 |
| Marriage Allowance* | £1,250 | 0 |
Tax Brackets
| Tax Rate | 2021/22 | 2022/23 | Change |
|---|---|---|---|
| Basic rate 20% | TFA - £37,700 | TFA - £37,700 | no change |
| Higher Rate 40% | TFA - £37,500 - £150,000 | £37,501 - £150,000 | no change |
| Additional Rate 45% | £150,001+ | no change |
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 2021/23. 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
Source listentotaxman.com®
| Gross Wage | Net Pay 2021/22 | Net Pay 2022/23 | Difference |
|---|---|---|---|
| £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 |
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
| Description | 2021/22 | 2022/23 | Change |
|---|---|---|---|
| Weekly Lower earnings limit, primary Class 1 | £123 | £123 | 0 |
| Weekly Upper earnings limit, primary Class 1 | £967 | £967 | 0 |
| Weekly Primary threshold | £190 | £242 | +52 |
| Weekly Secondary threshold | £175 | £175 | 0 |
| Weekly Upper Secondary Threshold for U21s | £967 | £967 | 0 |
| Apprentice Upper Secondary Threshold for U25s | £967 | £967 | 0 |
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Personal Tax
2019/2020 Tax Rates and Allowances
This page contains all of the personal income tax changes which were announced at the October 29th, 2018 Budget. These rates come into effect at the start of the new tax year, on April 6th 2019.
2018/2019 Tax Rates and Allowances
We have published a quick reference to the significant changes to the tax rates and bands, personal tax allowances and national insurance figures which come into effect from April 6th 2018.