UK self employed tax rates 2020/21 – at a glance!

The 2020/21 tax year in the UK runs from 6th April 2020 to 5th April 2021. Tax returns for this tax year are generally due by 31st January 2022. Here are some of the most common at-a-glance figures you might find useful for the next tax year.

Figures updated 11 March 2020 following the 2020 budget. All figures are subject to verification once everything is published on the HMRC website.

2020/21 Tax Rates for Self Employed in the UK

  • Tax Year:  6th April 2020 to 5th April 2021
  • Tax Return Deadline:  31st January 2022
  • Personal Allowance:  £12,500
  • Basic Tax Rate:  20% (£12,501-£50,000)
  • Higher Tax Rate:  40% (£50,001-£150,000)
  • Personal Savings Allowance:  £1,000 (visit this page)
  • Trading Allowance:  £1,000 (visit this page)
  • Property Allowance:  £1,000 (visit this page)

2020/21 National Insurance Rates for Self Employed in the UK

  • Class 2 Small Profits Threshold: £6,475
  • Class 2 Rate per week:  £3.05
  • Class 4 Lower Profits Threshold: £9,500
  • Class 4 NI Rate: 9%
  • Class 4 Rate above £50,000: 2%
  • For full details and past rates visit this page

Other useful information for self employed in 2020/21 tax year

  • VAT threshold:  £85,000 turnover
  • Standard VAT rate:  20%
  • Annual Investment Allowance:  £1m
  • Cash Basis Limit:  £150,000 turnover (visit this page)
  • Payment on Account threshold: £1,000 total tax bill (visit this page)
  • State Pension Age: 67 (visit this page)
  • Qualifying Years Required for Full State Pension: 35 (visit this page)

Please note that the above information is just intended as an ‘at-a-glance’ quick summary summary. Please visit the relevant links for full details. You should always seek professional guidance from a qualified accountant.

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Originally published: 5th January 2020
Last updated: 5th January 2020

Andy Mac