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 |
What our clients say about us...
"Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."
ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT
"I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."
Neil Price - Managing Director at Work Relief Charity Recruitment
"Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"
Lee Westrap MBCS - Director - Bulldog IT Services