JenBookkeeping

Business Mileage Reimbursement

These rates represent maximum tax – free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

          First 10,000 business
miles in the tax year.		 Each mile over 10,000
miles in the tax year.		 Extra passenger
making same trip.
Cars & Vans
45p
25p
5p
Motorcycle
24p
24p
N/A
Bicycle
20p
20p
N/A

Income tax rates and bands

When the personal allowance is taken into account an individual will start to pay tax at 40% when their total exceeds £50,270 in 2021/22. This threshold(and the 45%threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.

          2019/20 2020/21 2021/22 2022/23
Savings rate: 10%,
0% from 2015/16
Up to
£5,000
Up to
£5,000
Up to
£5,000
Up to
£5,000
Dividend
Allowance: 0%
Up to
£2,000
Up to
£2,000
Up to
£2,000
Up to
£2,000
Basic
Rate: 20%
Up to
£37,500
Up to
£37,500
Up to
£37,700
Up to
£37,700
Higher
Rate: 40%
£37,501 -
£150,000
£37,501 -
£150,000
£37,701 -
£150,000
£37,701 -
£150,000
Additional
Rate: 45%
Over
£150,000
Over
£150,000
Over
£150,000
Over
£150,000

Corporation Tax Rates

From 1 April 2023, the corporation tax main rate of non-ring fenced profit will be increased to 25% applying to profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less that they will continue to pay Corporation Tax at 19%. Companies with profits between£50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief.

Year beginning 1 April: 2020 2021 2022
19%
19%
19%

VAT Rates and Thresholds

For the period 15th July 2020 to 12th January 2021 there is a temporary 5% reduced rate of VAT for certain supplies of hospitality, hotel and holiday accommodation and admissions certain attractions.

          1 April
2018		 1 April
2019		 1 April
2020		 1 April
2021		 1 April
2022
Lower Rate
0%
0%
0%
0%
0%
Reduced Rate
5%
5%
5%
5%
5%
Standard Rate
20%
20%
20%
20%
20%
Registration
Turnover
£85,000
£85,000
£85,000
£85,000
£85,000
Deregistration
Turnover
£83,000
£83,000
£83,000
£83,000
£83,000
Acquisitions from
EU member states
registration and
deregistration
threshold
£85,000
£85,000
£85,000
£85,000
£85,000

Personal Allowances

The standard personal allowance is £12,570 for 2020/21, 2021/2022 and 2022/23.
 
The transferrable marriage allowance applies from 6 April 2015 to couple (married or civil partners) where neither person pays tax at the 40% or 45% rates. The spouse who cannot use all their personal allowance against their own income may opt to transfer 10 % of their personal allowance to their spouse or civil partner.
 
The personal allowance is tapered away for individuals who have income over £100,000 at the rate of £1 for every £2 of income above the threshold.
 
The allowances or recent years are as follows:
          2019/20 (£) 2020/21 (£) 2021/22 (£) 2022/23 (£)
Personal Allowances
£12,500
£12,500
£12,570
£12,570
Marriage Allowance
£1,250
£1,250
£1,260
£1,260
Blind person's
allowance
£2,450
£2,500
£2,520
£2,520
Income limit for
allowances for married
couple's allowance
£29,600
£30,200
£30,400
£30,400
Income limit for
standard allowances
£100,000
£100,000
£100,000
£100,000
Personal allowance
removed completely at
£125,000
£125,000
£125,140
£125,140