Income Tax Rates and Bands
Recent income tax rates and bands are as follows:
2020/21 | 2021/22 | 2022/23 | 2023/24 | |
Savings rate: 0% | Up to £5,000 | Up to £5,000 | Up to £5,000 | Up to £5,000 |
Dividend Allowance: 0% | Up to £2,000 | Up to £2,000 | Up to £2,000 | Up to £1,000 |
Basic rate: 20% | Up to £37,500 | Up to £37,700 | Up to £37,700 | Up to £37,700 |
Higher rate: 40% | £37,501 - £150,000 | £37,701 - £150,000 | £37,701 - £150,000 | £37,701 - £125,140 |
Additional rate: 45% | Over £150,000 | Over £150,000 | Over £150,000 | Over £125,140 |
When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £50,270. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.
Scottish Income Tax Rates and Bands
Scottish income tax applies to non-savings and non-divdend income
2020/21 | 2021/22 | 2022/23 | 2023/24 | |
Starter rate: 19% | Up to £2,085 | Up to £2,097 | Up to £2,162 | Up to £2,162 |
Basic rate: 20% | £2,086 to £12,658 | £2,098 to £12,726 | £2,163 to £13,118 | £2,163 to £13,118 |
Intermediate rate: 21% | £12,659 to £30,930 | £12,727 to £31,092 | £13,119 to £31,092 | £13,119 to £31,092 |
Higher rate: 42% | £30,931 to £150,000 | £31,093 to £150,000 | £31,093 to £150,000 | £31,093 to £125,140 |
Additional rate: 46% (47% from 6 April 2023) | Over £150,000 | Over £150,000 | Over £150,000 | Over £125,140 |
Tailored Advice For Your Business
We understand that no two businesses are the same, so we can tailor advice to suit your circumstances and business size. In this section you'll find guides and features for those businesses needing advice on how to manage company accounts, including cash flow management, late payment, bad debts and business tax...and much more