Chartered Accountants and Business Advisers
Chartered Accountantsand Business Advisers

Income Tax

  2021/22          2020/21
Basic rate band income up to  £37,700   £37,500
Starting rate for savings income *0%   *0%
Basic rate 20%   20%
Dividend ordinary rate **7.5%   **7.5%
Higher rate income over £37,700   £37,500
Higher rate 40%   40%
Dividend upper rate **32.5%   **32.5%
 Additional rate income over £150,000    £150,000 
 Additional rate 45%    45% 
 Dividend additional rate **38.1%    **38.1% 
Starting rate limit (savings income) *£5,000   *£5,000
       
Personal Allowance      
Basic #£12,570   #£12,500
Transferable Tax Allowance for certain married couples      
(relief 20%) £1,260   £1,250

 

For 2020/21 and 2021/22 Scottish taxpayers are subject to different income tax rates and bands to the rest of the UK.  

 

* If an individual's taxable non-savings income exceeds the starting rate limit, then the starting rate limit for savings will not be available for savings income.  For 2020/21 and 2021/22, £1,000 of savings income for basic rate taxpayers (£500 higher rate) may be tax-free.  

 

** For 2020/21 and 2021/22 the first £2,000 of dividends are tax-free.

 

# Where adjusted net income exceeds £100,000 for both years the basic personal allowance is reduced by £1 for every £2 until it is reduced to Nil.

Office hours

Monday - Friday

9.30 am to 5.00 pm

Address

Clive Shedd & Co

Chartered Accountants
232 Sladepool Farm Road  

Birmingham     B14 5EE

Making an appointment

If you wish to make an appointment please contact us:

 

Tel:     0121 474 4774

Fax:    0121 474 4766

Email: mail@cliveshedd.co.uk

or use our contact form.

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