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Tax Rates & Allowances

Income Tax and Personal Savings

The Chancellor announced the following income tax rates and allowances.

Income tax rates and bands

2022/23 2021/22
Band £ Rate % Band £ Rate %
0 – 37,700 20 0 – 37,500 20
37,701 – 150,000 40 37,501 – 150,000 40
Over 150,000 45 Over 150,000 45

Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.

Savings income

2022/23 2021/22
Savings allowance basic rate £1,000 £1,000
Savings allowance higher rate £500 £500

A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.

Dividend income

2022/23 2021/22
Dividend allowance £2,000 £2,000
Dividend ordinary rate 8.75% 7.5%
Dividend upper rate 33.75% 32.5%
Dividend additional rate 39.35% 38.1%

Personal allowances

2022/23 2021/22
Personal allowance £12,570 £12,500
Personal allowance income limit £100,000 £100,000
Marriage allowance

Transferable between certain spouses where neither pay tax above the basic rate

 

£1,260

 

£1,260

Married couple’s allowance (relief given at 10%) £9,125 £9,125
Either partner born before 6 April 1935
– minimum amount £3,530 £3,530
– income limit £30,400 £30,400
Blind person’s allowance £2,520 £2,520

National Insurance

2022/23 Class 1 (employers & employees)

   2022-23

   2021-22

Thresholds

Weekly

Monthly

Yearly

Weekly

Monthly

Yearly

Lower earnings limit £123 £533 £6,396 £120 £520 £6,240
Primary threshold
6 April 2021 to 5 April 2022 £184 £797 £9,568
6 April 2022 to 5 July 2022 £190 £823 £9,880
6 July 2022 to 5 April 2023 £242 £1,048 £12,570
6 April 2022 to 5 April 2023 (annual: directors) £229 £992 £11,908
Upper earnings limit £967 £4,189 £50,270 £967 £4,189 £50,270
Secondary threshold £175 £758 £9,100 £170 £737 £8,840
Freeport upper secondary threshold £481 £2,083 £25,000 N/A N/A N/A
Upper secondary threshold (under 21) £967 £4,189 £50,270 £967 £4,189 £50,270
Apprentice (under 25) upper secondary threshold £967 £4,189 £50,270 £967 £4,189 £50,270
Veterans’ upper secondary threshold £967 £4,189 £50,270 £967 £4,189 £50,270
Rates 2022-23 2021-22
Employees’ main rate (primary threshold to upper earnings limit) 13.25% 12%
Employees’ lower rate (above upper earnings limit) 3.25% 2%
Employers’ rate* 15.05% 13.8%

Disclaimer:

The information contained in this website is for general information purposes only. The information is provided by Adv Accountancy and while we endeavour to keep the information up to date and correct...
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Company Info:

A D V ACCOUNTANCY LIMITED
19 CLOS Y CARW
WOODGLADE LLANTWIT FARDRE
LLANTWIT FARDRE
R.C.T.
CF38 2BP
Registered in England and Wales.
Registration Number: 06792769

Contact Info:

Phone: 07791 630 242
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
tina.jenkins@advaccountancy.co.uk
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