Key UK Tax Rates
Income Tax rates and allowances for current and previous tax years
Here is the latest tax information and rules at your fingertips for the year-end 22/23. If the information is not included here you're welcome to give us a quick call or email for any help you require.
Personal Tax Rates
Understanding UK Tax Bands and Rates
Personal Tax Rates
| Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Cooperation Tax Rates
You pay Corporation Tax at the rates that applied in your company’s accounting period for Corporation Tax.
If your company made more than £250,000 profit, you’ll pay the main rate of Corporation Tax.
If your company made a profit of £50,000 or less, you’ll pay the ‘small profits rate’, which is 19%.
You may be entitled to ‘Marginal Relief’ if your profits were between £50,000 and £250,000.
The £50,000 and £250,000 profit thresholds are proportionately reduced for short accounting periods and by the total number of ‘associated companies’ your company has.
Value Added Tax (VAT) Overview
| % of VAT | What the Rate Applies to |
|---|---|
| Standard Rate 20% | Most goods and services |
| Reduced Rate | Some goods and services, for example, children’s car seats and home energy |
| Zero Rate | Zero-rated goods and services, for example, most food and children’s clothes |
