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21/22 Tax Tables

Corporation tax

The corporation tax rate remains at 19% until 31 March 2023. With effect from 1 April 2023 Corporation tax will be charged as follows:

  • Profits up to £50,000: Small Profits Rate of 19%.
  • Profits over £250,000: Main Rate of 25%.

Profits between £50,000 and £250,000 will be subject to a gradual increase in the corporation tax through marginal tax relief.

Income tax 

England, Wales and Northern Ireland

The rates at which your personal income will be taxed remain unchanged, but the bands have changed as follows:

The tax-free allowance for dividends remains at £2,000. Dividends are taxable depending on the income band of all income as shown in the table below:

The tax-free allowance for interest income remains at £1,000 and £500 for higher rate tax payers.

Income tax – Scotland

After the 17/18 tax year the Scottish Parliament was able to use its powers to vary the tax rates and tax bands from the rest of the UK. If your main residence is in Scotland then your income will be taxed as shown in the table below:

National insurance 

The table below provides a brief overview of the more widely used National insurance classes. For more information please refer to the HMRC website:

National Insurance payable by employees and employers

National Insurance payable by the self-employed

There are two types of National Insurance contributions for the self-employed:

Class 2: Payable when profits exceed £6,515 (20/21: £6,475) at £3.05 per week. You may choose to make voluntary contributions if profits are below this level. 

Class 4 is payable on profits more than the Lower profits limit. Rates are shown in the table below:

Employment tables

Minimum wage

The minimum wage will increase as shown in the table below:

Workplace pension (auto-enrolment)

Contribution rates to workplace pensions:

Car mileage claim rates

Company car 

The rates below are available to employees who have been provided with a company car for claim back fuel use on company business:

Own vehicle 

The rates below are for the use of own vehicle for business journeys:

Student Loan Repayments

Student loans repayable on 9% of income (6% for the post-graduate scheme) above the earnings thresholds. Earnings thresholds vary by plan shown in the table below:


No changes to VAT. Threshold for VAT registration remains at £85,000 for sales in a 12 month period. You may de-register for VAT when your 12-month sales fall below £83,000.

Capital gains tax

The tax-free allowance remains at £12,300 for the 2021/22 tax year. Tax rates are unchanged as follows:

Capital gains tax applies when you make a profit on a sale of an asset, such as property or shares. Even gifts could attract a capital gains tax charge. Careful planning is needed and there are valuable reliefs available to reduce or even eliminate a tax charge.


While we make every effort to make sure this guide is accurate and up to date, you should take professional advice before acting on the information provided here. If you contact us, we will be happy to help. Beans cannot take responsibility for actions taken and losses incurred as a result of actions taken or not taken based on the information provided here.

21/22 Tax Tables
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