Topic overview

Business tax rates and thresholds

Business tax rates and thresholds

We've scoured the web to get you the most up-to-date advice which includes the most useful tools on offer from the officials themselves. The list below links to details of the current tax rates, rates for the previous year and forthcoming changes to tax rates and tax thresholds where they have been previously announced.

Get help estimating tax bills with a range of tax calculators. But bear in mind that calculators are based on standard assumptions. If your tax affairs are more complicated or if you need detailed advice, talk to an accountant.

Income tax rates and tax thresholds

Visit the HM Revenue & Customs (HMRC) pages of the GOV.UK website to find income tax rates, allowances and taxable bands.

Use the HMRC tax checker for employees for a quick assessment of whether you paid the correct tax for a previous year.. This calculator is not suitable for the self-employed.

Visit the HMRC pages to find approved mileage rates that can be used by small businesses to calculate their allowable motoring expenses and that can be paid free of tax and NICs to employees using their own vehicles for work.

Corporation tax rates and indexation allowances

Find corporation tax rates including details of the small profits rate and marginal relief by visiting the HMRC pages.

The small profits rate and main rate of corporation tax were aligned on 6 April 2015 and reduced in 2017 to the current rate of 19%.

To work out corporation tax for earlier tax years, you can use the HMRC marginal relief calculator for company profits between the small profits rate threshold and the main corporation tax threshold.

On the HMRC pages you can also find details of indexation allowances to reduce chargeable gains.

National Insurance and PAYE rates and thresholds

Find National Insurance contributions (NICs) rates and thresholds for employees, employers and the self-employed by visiting the HMRC pages.

Visit the HMRC pages to find PAYE rates and thresholds for employers.

Use the HMRC PAYE calculator to work out the tax to be deducted from an employee's pay.

Use the HMRC National Insurance calculator to work out employer's and employees NICs.

Use the HMRC Directors annual NICs calculator to check the final NICs payment for a director at the end of the tax year or when the directorship ends.

Use HMRC's statutory payment calculators on the GOV.UK website to work out whether employees qualify for statutory payments and if so how much and what you can recover:

Use the HMRC company car and car fuel benefit calculator to work out the value of the benefit and estimate the tax payable.

Read the HMRC guidance on IR35 to calculate the additional tax and NICs your personal service company may need to pay.

VAT thresholds and tax rates

The VAT registration threshold is £85,000 and the deregistration threshold £83,000. The registration and deregistration thresholds will remain at their current level for two years from 1 April 2020. You can find details of historic VAT registration and deregistration thresholds by visiting the HMRC website.

The standard rate of VAT has been 20% since 4 January 2011. Reduced-rate supplies are taxed at 5% and zero-rated goods at 0%.

You can deal with VAT on road fuel by paying the appropriate scale charge. Find fuel scale charges by visiting the HMRC pages of the GOV.UK website.

Smaller businesses can simplify their VAT with special accounting schemes. The turnover limits are:

  • Annual accounting scheme: registration is allowed provided your estimated VAT taxable turnover for the next year is no more than £1.35 million; businesses using the scheme can do so until their estimated turnover exceeds £1.6 million.
  • Cash accounting scheme: registration limit £1.35 million; deregistration £1.6 million.
  • Flat rate accounting scheme: registration limit £150,000; deregistration £230,000.
  • Different retail schemes and margin schemes for traders in second-hand goods are also available, depending on your turnover. Take advice on what best suits your circumstances.

Capital Gains tax rates and allowances

Find details of capital gains tax rates and allowances for personal assets and capital gains made by the self-employed by visiting the HMRC website.

Business rates and stamp duty

Find current and historic business rate multipliers by visiting the Valuation Office Agency website.

Find details of stamp duty land tax (SDLT) rates and thresholds by visiting the HMRC website.

Use the HMRC SDLT calculators.

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