Changes to UK Income tax rates changes for 19/20 from 5th April 2019:
Up to £12,500, Tax 0%
£12,501 to £50,000, Tax 20%
£50,001 to £150,000, Tax 40%
Over £150,000, Tax 45%
There are many other changes with tax allowances such as Annual Investment Allowance claimable rising to £200,000 per annum.
Dividend tax rates:
The tax-free dividend allowance is £2,000
Basic-rate taxpayers pay 7.5% on dividends
Higher-rate taxpayers pay 32.5% on dividends
Additional-rate taxpayers pay 38.1% on dividends.
Rate remains at 19%
If loaned amount exceeds £10,000 at any point during the year then 2.5% nominal interest on the whole amount plus Class 1A National Insurance contributions (13.8%), and may need to be reported on your P11D
As market leaders and experts in Tax and accounting for business, there are of course many other changes as well and these we regularly advise and update our clients as and when the tax rules change. If you would like to become a client and receive this support and updates - contact us today.
By Anni Khan at Tax Affinity Accountants
Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Kingston upon Thames and Espom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting contractors and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice.
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