UK Tax, National Insurance, & Allowances for 2023/2024
Income Tax - PAYE, SELF EMPLOYMENT, rental incomE, dIVIDENDS, savings interest income...
Tax-Free Personal Allowances
Personal Allowance
£12,570 can be used tax-free against PAYE income, self employed income, rental income, dividend income, savings income, and other income declared on a self assessment tax return
Self Employment (trading) Allowance
The first £1,000 from self employment has a tax-free allowance
Property Allowance
The first £1,000 from rental income has a tax-free allowance
Dividend Allowance
The first £1,000 from dividend income has a tax-free allowance
Savings Allowance
The first £1,000 from savings income has a tax-free allowance. This drops to £500, if a higher rate earner, and £0 if an additional rate earner
Personal Allowance
£12,570 can be used tax-free against PAYE income, self employed income, rental income, dividend income, savings income, and other income declared on a self assessment tax return
Self Employment (trading) Allowance
The first £1,000 from self employment has a tax-free allowance
Property Allowance
The first £1,000 from rental income has a tax-free allowance
Dividend Allowance
The first £1,000 from dividend income has a tax-free allowance
Savings Allowance
The first £1,000 from savings income has a tax-free allowance. This drops to £500, if a higher rate earner, and £0 if an additional rate earner
Tax Rates
Basic Rate
20% on income up to £50,270
Higher Rate
40% on income above £50,270 and up to £125,140
Additional Rate
45% on income above £125,140. Additional rate earners are not eligible for the personal tax-free allowance.
Basic Rate
20% on income up to £50,270
Higher Rate
40% on income above £50,270 and up to £125,140
Additional Rate
45% on income above £125,140. Additional rate earners are not eligible for the personal tax-free allowance.
National Insurance Classes & Rates
Class 1
This is paid by employees. You can see a list of employee national insurance rates here.
Class 1A and 1B
This is paid by employers on employee expenses and benefits. You can see a list of rates here.
You can see a list of employer national insurance rates here.
Class 2
This is paid on self employed income over £12,570 per year. The rate for 2023/2024 is £3.45 a week.
Class 3
Class 3 national insurance is a voluntary national insurance to fill gaps in national insurance eligibility records. This rate of 2023/2024 is £17.45 a week
Class 4
This is paid on self employed income over £12,570 per year. The rates are 9% on profits between £12,570 and £50,270 and 2% on profits above £50,270.
This is paid by employees. You can see a list of employee national insurance rates here.
Class 1A and 1B
This is paid by employers on employee expenses and benefits. You can see a list of rates here.
You can see a list of employer national insurance rates here.
Class 2
This is paid on self employed income over £12,570 per year. The rate for 2023/2024 is £3.45 a week.
Class 3
Class 3 national insurance is a voluntary national insurance to fill gaps in national insurance eligibility records. This rate of 2023/2024 is £17.45 a week
Class 4
This is paid on self employed income over £12,570 per year. The rates are 9% on profits between £12,570 and £50,270 and 2% on profits above £50,270.
cORPORATION Tax
Corporation Tax Rates
Lower Rate
For profits below £50,000, the corporation tax rate is 19%
Tapered Rate
For profits above £50,000 but below £250,000, the corporation tax rate is tapered between 19% and 25%
Main Rate
The main rate of corporation tax is 25%. This is applicable on company profits above £250,000
Lower Rate
For profits below £50,000, the corporation tax rate is 19%
Tapered Rate
For profits above £50,000 but below £250,000, the corporation tax rate is tapered between 19% and 25%
Main Rate
The main rate of corporation tax is 25%. This is applicable on company profits above £250,000
cAPITAL gAINS
Tax-Free Allowance (Annual Exempt Amount)
Capital Gains Allowance
£6,000 for individuals and £3,000 for trusts
Capital Gains Tax Rates
Basic Rate
The capital gains tax rate for basic rate earners is 10% on gains and 18% on residential property gains
Higher Rate
The capital gains tax rate for higher rate earners is 20% on gains and 28% on residential property gains
Capital Gains Allowance
£6,000 for individuals and £3,000 for trusts
Capital Gains Tax Rates
Basic Rate
The capital gains tax rate for basic rate earners is 10% on gains and 18% on residential property gains
Higher Rate
The capital gains tax rate for higher rate earners is 20% on gains and 28% on residential property gains
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