Tax rates 2023/24 and 2022/23 - Chancellors Autumn Statement 17/11/2022; 2023/24 subject to the budget 15/03/2023

Personal tax, National Insurance and Business taxes

Income tax rates: England, Wales & Northern Ireland (non-dividend income)	2023/24	2022/23	2021/22
0% starting rate for savings only	Up to £5,000	Up to £5,000	Up to £5,000
20% basic rate tax	£12,571-£50,270	£12,571-£50,270	£12,571-£50,270
20% Construction Industry Scheme CIS deduction rate	all labour earnings	all labour earnings	all labour earnings
40% higher rate tax	£50,271-£125,140	£50,271-£150,000	£50,271-£150,000
45% additional rate tax	Above £125,140	Above £150,000	Above £150,000

National Insurance	2023/24	2022/23	2021/22
Class 1 PAYE
Class 1 Employees
Lower earnings limit, primary class 1 (perweek) Class 1 - Lower earnings limit LEL, primary Class 1, minimum earnings to qualify for State pension and payroll benefits - set up a PAYE scheme at this level (per week) If you already have a PAYE scheme you do not have to enter employees paid below this level but you still need to check the: ⚫ Employee right to work in UK under Prevention of Illegal Working regulations and ⚫ Apply minimum wage regulations. applied on a weekly basis, except for directors (per year)	£123	£123	£120
Primary threshold (per week) * Employees start paying NI above this point. applied on a weekly basis, except for directors (per year). from 6 April 2022 to 5 July 2022 from 6 July 2022 to 5 April 2023	£242	£190 £242	£184
Employee’s primary class 1 rate between primary threshold and upper earnings limit From 6 April 2022 to 5 November 2022 From 6 November 2022 to 5 April 2023	12%	13.25% 12%	12%
Upper earnings limit, primary class 1 (perweek) * Employees pay a lower rate of NI above this point	£967	£967	£967
Apprentice upper secondary threshold (AUST)for under 21s/25s	£967	£967	£967
Employee’s primary class 1 rate above upper earnings limit from 6 April 2022 to 5 November 2022 from 6 November 2022 to 5 April 2023	2%	2%	2%
Class 1 Employers
Secondary threshold (per week) * Employers start paying NI above this point but claim Employment allowance	£175	£175	£170
Employer's secondary class 1 rate above secondary threshold There is no upper limit. from 6 April 2022 to 5 November 2022 from 6 November 2022 to 5 April 2023	13.8%	15.05% 13.8%
Employment allowance (per year/employer) * Employers claim the current month applicable amount of Employment Allowance against your employer’s national insurance contributions.	£5,000	£5,000	£4,000
You cannot claim Employment Allowance if both of the following apply: You're a company with only one employee paid above the Class 1 National Insurance secondary threshold and The employee is also a director of the company.
Class 1 Employees - Married woman’s reduced rates
Married woman’s reduced rate between primary threshold and upper earnings limit from 6 April 2022 to 5 November 2022 from 6 November 2022 to 5 April 2023	5.85%	7.1% 5.85%
Married woman’s rate above upper earnings limit from 6 April 2022 to 5 November 2022 from 6 November 2022 to 5 April 2023	2%	3.25% 2%	2%
Class 2 Self employed
Class 2 rate (per week where profits are above lower profits limit threshold	£3.45	£3.15	£3.05
Class 2 smallprofits threshold (per year)	£6,725	£6,725	£6,515
Class 3 voluntary contributions
Class 3 voluntary rate (per week)	£17.45	£15.85	£15.40
Class 2 Self employed
Class 4 lower profits limit	£12,570	£11,908	£9,568
Class 4 upper profits limit	£50,270	£50,270	£50,270
Class 4 rate between lower profits limit and upper profits limit	9.73%	9.73%	9.00%
Class 4 rate above upper profits limit	2.73%	2.73%	2.00%
Class 1A/1B - Class 1 benefits
Class 1A/1B NIC	14.53%	14.53%	13.8%

Workplace Pension Scheme	Tax year 2023/24	Tax year 2022/23	Tax year 2021/22
Category 1 employees - Have a right to join a Workplace pension scheme But employee-only contributions. Ages 16 to 74	Earning up to 6,240 per annum 520 per month	Earning up to 6,240 per annum 520 per month
Category 2 employees - Have a Right To Opt In to a Workplace pension scheme - employee and employer contributions Ages 16 to 74	Earning over 6,240 per annum 520 per month	Earning over 6,240 per annum 520 per month
Category 3 employees - Automatic Enrolment employees are Aged 22 to State Pension Age. Enroll within six weeks of the employee start date.	Earning above 10,000 per annum 833.33 per month	Earning above 10,000 per annum 833.33 per month	Earning above 10,000 per annum 833.33 per month
Directors are exempt from Automatic Enrolment into a Workplace Pension Scheme unless there are two or more directors who have contracts of employment. Most one-man companies or family companies do not have directors with contracts of employment.
Workplace pensions Minimum contributions are:
Employer Minimum Contribution	3%	3%	3%
Employee Minimum Contribution	5%	5%	5%
Total Minimum Contribution - Employer and Employee combined	8%	8%	8%
On earnings in excess of the Lower level of qualifying earnings 'threshold':	6,240 per annum 520 per month	6,240 per annum 520 per month
The employee gets tax relief at the income tax standard rate: So with the standard rate at 20%, when the employee contribution is £100.00 the deduction will show on the payslip as £80.00; this is calculated as £100.00 less 20% = £80.00. £100 goes into the pension pot.
The employer gets tax relief by including amounts paid, as employer contributions, in annual Financial Statements and Corporation Tax returns.
Depending on the rules of the scheme, the employee can pay-in less as long as the employer puts-in enough to meet the Total Minimum Contribution.

Employee vehicles: Mileage Allowance Payments (MAPs)	Tax year 2023/24	Tax year 2022/23	Tax year 2021/22
Car - first 10,000 miles - per mile	45 pence	45 pence	45 pence
Car - subsequent miles - per mile	25 pence	25 pence	25 pence
Motorcycle - per mile	24 pence	24 pence	24 pence
Cycle - per mile	20 pence	20 pence	20 pence
VAT registered traders may reclaim VAT on the fuel element using HMRC fuel mileage rates according to fuel type and engine size.

Capital gains tax CGT - Residential property	Tax year 2023/24	Tax year 2022/23	Tax year 2021/22
CGT Rate - basic rate tax payer – Residential property	18%	18%	18%
CGT Rate - higher rate tax payer – Residential property	28%	28%	28%
Higher rates apply to total annual income and capital gains above: For Capital gains tax, there is no additional rate above 28%.	£50,270	£50,270	£50,270
If you only own one property, which has always been your main residence, Private residence relief applies to the whole period, no Capital gains tax is payable and 60 day procedures do not apply.
An Additional relief on capital gains on a Residential property which has BOTH been your main residence AND has been let for part of the time on a commercial basis. Not applicable if it has been let during the period of ownership without being your main residence.
Private residence relief: Actual period of residence plus, in the period prior to disposal	9 Months	9 Months	18 Months
Lettings relief: the Lower of Private residence relief or £40,000 has not been available since 6th April 2020.
Annual CGT exemptions – individuals (per year) In the year of sale; this does not accumulate over years (Tax year 2024/25 £3,000)	£6,000	£12,300	£12,300
When gains are below the Annual exemption and sale proceeds are below four times the Annual exemption there is no need to declare the disposal. If sales are over four times the Annual exemption, do declare the sales; even if profits are below the Annual exemption. Sales from 06/04/2020 you also need to use the 60 day reporting procedure in these circumstances.	£24,000	£49,200	£49,200
Where 60 day procedures apply, the Capital gains tax computation also needs to be included in your annual self assessment tax return. The tax payable may be slightly different depending on how accurate your estimate of other income has been in the 60 day calculation of tax. More or less may be payable at the CGT Rate - higher rate; see above.

Capital gains tax CGT - Other	Tax year 2023/24	Tax year 2022/23	Tax year 2021/22
CGT Rate - basic rate tax payer	10%	10%	10%
CGT Rate - higher rate tax payer	20%	20%	20%
Higher rates apply to total annual income and capital gains above: For Capital gains tax, there is no additional rate above 20%.	£50,270	£50,270	£50,270
Annual CGT exemptions – individuals (per year) In the year of sale; this does not accumulate over years (Tax year 2024/25 £3,000)	£6,000	£12,300	£12,300

Funds withdrawn from a company which has been struck off at Companies House.	Tax year 2023/24	Tax year 2022/23	Tax year 2021/22
Maximum treated as Capital Gain	£25,000	£25,000	£25,000
Any excess is taxed as income.

Dividend income allowances and tax rates	Tax year 2023/24	Tax year 2022/23	Tax year 2021/22
Dividend allowance tax free (Tax year 2024/25 £500)	£1,000	£2,000	£2,000
Dividend income basic rate	8.75%	8.75%	7.5%
Dividend income higher rate	33.75%	33.75%	32.5%
Dividend income additional rate	39.35%	39.35%	38.1%
Higher rates apply to total annual income and capital gains above:	£50,270	£50,270	£50,270
Additional rates apply to total annual income (but not capital gains) above:	£125,140	£150,000	£150,000

State pension income	Tax year 2023/24	Tax year 2022/23	Tax year 2021/22
The basic State Pension if you reached State Pension age before 6 April 2016 - per week	£156.20	£141.85	£137.60
The new State Pension if you reached State Pension age on or after 6 April 2016 - per week a man born on or after 6 April 1951 or a woman born on or after 6 April 1953	£203.85	£185.15	£179.60
Increase basis on prior year	Consumer Prices Index CPI 10.1%	Consumer Prices Index CPI 3.1%	Triple lock base 2.5%
New State Pension paid pro rata by qualifying years; 10 years minimum; 10/35ths entitlement; 35 years maximum full entitlement. There is no benefit in paying more than 35 years.
If you defer drawing your State pension: The basic State Pension is increased by 10.4% for each year you defer. The new State Pension is increased by 5.8% for each year you defer. Pro rata increases for periods of less than one year.