Tax rates and Thresholds

Useful tax rate info for businesses

The rates and thresholds for tax, national insurance & personal allowances are updated each year on 6th April.

Below are the current and historical rates & thresholds that small businesses need to know.

Personal Allowance & Income Tax Rates

Most UK taxpayers are entitled to a personal allowance (the amount of money that you are allowed to earn before you pay tax).  The rate of income tax you pay depends on what you earn.

MINIMUM WAGE

If you employ staff, you must pay them above the National Minimum Wage.  There are different rates depending on the age of your employee.  Rates change annually in October.

National Insurance 

Your National Insurance contributions count towards some state benefits.  The Class and amount you pay depends on your employment status and the amount you earn.

Fuel Only Rates for Company Cars 

To avoid a benefit in kind for fuel, many employees with company cars choose to purchase their own fuel and put through an expense claim for the ‘fuel only’ element of the miles they have accrued.  The rates change quarterly.

Fuel Scale Charges 

If you are a VAT registered business and put through 100% of your fuel costs but use your vehicle for some personal use, you should include a scale charge on your VAT return.  This is where you ‘pay back’ the VAT on the private fuel element.  The amount you pay is fixed and determined by the cars CO2 band.

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