Income Tax UK Rates

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Income Tax Rates

If you are looking at Income Tax Rates and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances and tax efficient ways to legally minimise your Income Tax.

Income Tax rates for England and Wales (and Scotland prior to 2018/ 19)

Starting rate for Savings: 0%[1]£0 - £5,000£0 - £5,000£0 - £5,000
Basic rate: 20%£0 - £37,500£0 - £37,700£0-£37,700
Higher rate: 40%£37,501 - £150,000£37,701 - £150,000£37,701- £150,000
Additional rate: 45%Over £150,000Over £150,000Over £150,000

For Scottish Taxpayers, the following proposed rates and bands will apply if the Scottish Budget for 2020-21 is approved by the Scottish Government.

Starter rate19%Over £12,500 Up to £14,585Over £12,570 Up to £14,667
Basic rate20%Over £14,585 Up to £25,158Over £14,667 Up to £25,296
Higher rate21%Over £25,158 Up to £43,430Over £25,296 Up to £43,662
Additional rate41%Over £43,430 Up to £150,000Over £43,430 Up to £150,000
Top rate46%Above £150,000Above £150,000

Note 1. Scottish rates apply to Scottish taxpayers on all non-savings income which includes earned income from employment, self-employment or partnerships and property income, pension income and any other income that is not classed as savings or dividends.

If, after deducting your Personal Allowance from your total income liable to Income Tax, your non­savings income is above this limit then the starting rate for savings will not apply. Non­savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.


Dividend rates2020/212021/222022/23
Dividend ordinary rate - for dividends otherwise taxable at the basic rate ( effective rate with tax credit)7.50% 7.50%8.75%
Dividend upper rate - for dividends otherwise taxable at the higher rate (effective rate with tax credit)32.50%32.50%33.75%
Dividend additional rate - for dividends otherwise taxable at the additional rate (effective rate with tax credit)38.10%38.10%39.35%

Disclaimer : This website and its contents have been produced as a helpful reference point. The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the
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Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible North London accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call on your income tax planning using the link below. Looking for an expert North London accountants? Get in touch now.