Tax Bands for 2019/20 and 2020/21

Posted 07/08/2020

Your residency of your main home affects whether your tax is calculated by the different band brackets. If you moved country during the tax year, the country in which you spent the majority of your year in a main home determines your residency and which tax band to use. Many figures from the 2019/20 have not changed for the 2020/21 tax year; the overall changes appear to be made to the starter and basic rates of tax.

Dividend tax bands remain the same as the last year; basic rate at 7.5%, higher rate at 32.5% and top rate at 38.1%.

Personal Allowance:
2019/20 £12,500
2020/21 £12,500
The tax rates below are for income after the personal allowance has been deducted. The personal allowance is the amount of income an individual in the UK can earn tax-free. Tax is applied to earnings above this amount.

Scottish Tax Bands:
TAX BAND RATE 2019/20 2020/21
STARTER RATE 19% £0-£2,049 £0-£2,085
BASIC RATE 20% £2,050-£12,444 £2,086-£12,658
INTERMEDIATE RATE 21% £12,445-£30,930 £12,659-£30,930
HIGHER RATE 41% £30,931-£150,000 £30,931-£150,000
TOP RATE 46% Over £150,000 Over £150,000

England, Northern Ireland and Wales Tax Bands:
TAX BAND RATE 2019/20 2020/21
BASIC RATE 20% £0-£37,500 £0-£37,500
HIGHER RATE 40% £37,501-£150,000 £37,501-£150,000
TOP RATE 45% Over £150,000 Over £150,000

2019/20 ran from the 6th April 2019 to the 5th April 2020. Any Tax Returns are due for this tax year by the 31st January 2021. 2020/21 runs from the 6th April 2020 to the 5th April 2021 and Tax Returns covering these dates are due by the 31st January 2022.
There are separate rates, allowances and bands for Capital Gains Tax and National Insurance.

Tags: personal tax, self assessment tax return