UK income tax rates 2020/2021

You must submit your self-assessment return to HM Revenue and Customs before 31 January each year. The default tax year period for self-assessment return filing in the UK is 6 April to 5 April. Below is the UK income tax rates 2020/2021 to help you to calculate your tax liability.

England, Wales and Northern Ireland Income tax rates 2020/2021

BandTaxable incomeTax rate
Personal Allowanceup to £12,5000%
Basic rate£12,501 to £50,00020%
Higher rate£50,001 to £150,00040%
Additional rate over£150,00045%
Source: GOV.UK

Scotland Income tax rates 2020/2021

BandTaxable incomeTax rate
Personal AllowanceUp to £12,5000%
Starter rate£12,501 to £14,58519%
Basic rate£14,586 to £25,15820%
Intermediate rate£25,159 to £43,43021%
Higher rate£43,431 to £150,00041%
Top rateover £150,00046%
Source: GOV.UK

Self-employed through a limited company

If you are self-employed individual trading through a limited company and you withdraw money from your company through salary and dividend payment, your salary and dividend amount enter in your self-assessment return form must agree to your signed and dated company accounts and corporation tax return filed with HMRC.

Your total salary for the tax year can also be obtained from your P60 form.

Take note that corporation tax rates 20/21 are not the same as the UK income tax rates 2020/2021.

In addition to the above, there is another important document you must submit to Companies House for your limited company that is your confirmation statement.

If you require help with your company accounts, corporation tax return, self-assessment return and confirmation statement filings, feel free to contact our accountants and they will be more than happy to help you.

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