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
s
| Allowance | 2020/21 | 2021/22 | Change |
|---|---|---|---|
| Basic | £12,500 | £12,570 | +70 |
| People born between 6th April 1938 - 5th April 1948 | £12,500 | £12,570 | +70 |
| People born before 6th April 1938 | £12,500 | £12,570 | +70 |
| Married Couples Allowance ( if born before 6th April 1935) | £9,075 | £9,125 | +50 |
| Blind Person's Allowance | £2,500 | £2,520 | +20 |
| Marriage Allowance* | £1,250 | £1,260 | +10 |
Tax Brackets
| Tax Rate | 2020/21 | 2021/22 | Change |
|---|---|---|---|
| Basic rate 20% | TFA - £37,500 | TFA - £37,700 | widened by £200 |
| Higher Rate 40% | TFA - £37,501 - £150,000 | £37,701 - £150,000 | narrowed by £200 |
| Additional Rate 45% | £150,001+ | £150,001+ | no change |
£200 increase to the Basic Rate tax bracket and a £70 increase in the Basic Personal Allowance means you can earn £270 more a year before crossing into the 40% higher rate threshold for 2021/22. No change to the Additional Rate threshold for the coming tax year.
| Tax Rates – Scotland | 2020/21 | 2021/22 |
|---|---|---|
| 19% Starter rate | £12,501 | £12,571 |
| 20% Basic rate | £14,586 | £14,667 |
| 21% Intermediate rate | £25,159 | £25,296 |
| 41% Higher rate | £43,431 | £43,662 |
| 46% Top rate | £150,000+ | £150,000+ |
| Tax Rates – Wales | 2020/21 | 2021/22 |
|---|---|---|
| 19% Starter rate | £12,501 | £12,571 |
| 20% Basic rate | £14,586 | £14,667 |
| 21% Intermediate rate | £25,159 | £25,296 |
| 41% Higher rate | £43,431 | £43,662 |
| 46% Top rate | £150,000+ | £150,000+ |
Change in take home pay after tax and NI
| Gross Wage | Net Pay 2020/21 | Net Pay 2021/22 | Difference | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| £10,000 | £9,940 | £9,948 | +£8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| £20,000 | £17,241 | £17,263 | +£22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| £30,000 | £24,041 | £24,063 | +£22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| £40,000 | £30,841 | £30,863 | +£22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| £50,000 | £37,641 | £37,663 | +£22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| £75,000 | £52,143 | £52,192 | +£49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| £100,000 | £66,643 | £66,692 | +£49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| £125,000 | £76,143 | £76,192 | +£49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| £150,000 | £90,640 | £90,661 | +£21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| © 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
| Description | 2020/21 | 2021/22 | Change |
|---|---|---|---|
| Weekly Lower earnings limit, primary Class 1 | £120 | £120 | 0 |
| Weekly Upper earnings limit, primary Class 1 | £962 | £967 | +5 |
| Weekly Primary threshold | £183 | £184 | +1 |
| Weekly Secondary threshold | £169 | £170 | +1 |
| Weekly Upper Secondary Threshold for U21s | £962 | £967 | +5 |
| Apprentice Upper Secondary Threshold for U25s | £962 | £967 | +5 |
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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.