Company No: 09234927 Registered in England and Wales

156 Hanworth Rd, Hampton TW12 3EY, UK

Tel: 020 8234 6184

©2019 by Seed Accounting Solutions Ltd.

  • Rosie Morley

Tax Rates, thresholds and allowances for 2019/2020

In the UK we have many different tax rates which affect businesses and individuals. Along with the tax rates, your finances could be affected by the changing tax bands and allowances for 2019/2020.

Here we look at the changes between 2018/19 and 2019/20.

Income tax rates

The amounts assume the full Personal Allowance is used by the individual.

Dividend Tax Rates

There is no change to dividend tax rates for 2019/20.

The tax free dividend allowance is £2,000.

Basic rate taxpayers pay 7.5% on dividends.

Higher rate tax payers pay 32.5% on dividends.

Additional rate taxpayers pay 38.1% on dividends.

Personal allowance and rates

National Insurance

These can be the most confusing, sometimes because they are different for employees, sole traders and limited companies. NICs are usually calculated weekly but we've added annually too.

Capital Gains Tax

CGT is a tax on the profit made when you sell something that's increased in value. It's the gain you make that's taxed, not the amount of money you receive. The tax rate depends on the total amount of your taxable income. CGT can be confusing, if you would like any advice, please do get in touch.

Corporation Tax

The Corporation tax rate remains the same for 2019/20 at 19%. It is planned to reduce to 17% for 2020/21.

VAT Registration

The level of revenue at which you must register for VAT remains the same, £85,000

General VAT Rates

These also stay the same for 2019/20.

Standard - 20%

Reduced Rate - 5%

Zero Rate - 0%

National Living Wages

These are changing for 2019/20 which is great news.

Please do get in touch today, if you need help understanding these changes and how they will affect your business.