skip to navigationskip to main content
Accountants Cowley Holmes Chartered Accountants Excellence award
Business accountants SME tax Accountants in Bedfordshire Best accountants in Bedford

Tax Rates & Allowances

Back to Tax Rates & Allowances

Income Tax Rates and Bands

Recent income tax rates and bands are as follows:

  2020/21 2021/22 2022/23 2023/24
Savings rate: 0% 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 £1,000
Basic rate: 20% Up to £37,500 Up to £37,700 Up to £37,700 Up to £37,700
Higher rate: 40% £37,501 - £150,000 £37,701 - £150,000 £37,701 - £150,000 £37,701 - £125,140
Additional rate: 45% Over £150,000 Over £150,000 Over £150,000 Over £125,140

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

Scottish Income Tax Rates and Bands

Scottish income tax applies to non-savings and non-divdend income

  2020/21 2021/22 2022/23 2023/24
Starter rate: 19% Up to £2,085 Up to £2,097 Up to £2,162 Up to £2,162
Basic rate: 20% £2,086 to £12,658 £2,098 to £12,726 £2,163 to £13,118 £2,163 to £13,118
Intermediate rate: 21% £12,659 to £30,930 £12,727 to £31,092 £13,119 to £31,092 £13,119 to £31,092
Higher rate: 42% £30,931 to £150,000 £31,093 to £150,000 £31,093 to £150,000 £31,093 to £125,140
Additional rate: 46% (47% from 6 April 2023) Over £150,000 Over £150,000 Over £150,000 Over £125,140


Click here to see how easy it is to switch to Cowley Holmes

FREE Consultation

Worth £200 for Free Call us on
01234 355300 or click on the button below

Click Here

Fixed Fee Quote

Call us on
01234 355300 or click on the button below

Click Here

Sign up to our Tax &
Business Tips Newsletter

Ask an
Accountant a Question

Click Here

Become a Client

To find out 8 great reasons why you should get a quote.

Click Here

Claim your FREE Essential Guide to Understanding your accounts