A new tax year means a new set of tax cards that you can now download here
A few changes to keep in mind this tax year:
- The amount you can earn before you start paying income tax (personal allowance) is up by £650 (£12,500 compared to £11,850 last year).
Your income will be taxable at 20% if you earn between £12,500 to £50,000. If your income is above £50,000 you will be paying higher rate tax (40 per cent).
On earning of £100,000 or more, the tax-free personal allowance falls by £1 for every £2 you earn over £100,000.
- Dividend allowance was cut last year, however, the allowance will remain at £2,000 for the 2019/2020 tax year (can be stacked with personal allowance).
- Lower rate taxpayers pay 10% tax on capital gains and higher and additional rate taxpayers pay 20%. The exemption for 2019/20 is £12,000 (up by £300 compared to last year)
- ISAs – The amount you can save into your ISA will stay at up to £20,000 for this tax year. You can also put £4,000 into your lifetime ISA, if you’d like to save for a first home or retirement (will count towards your overall £20,000 limit)
For more changes and complete charts, see our 2019/20 Tax Cards here
Elman Wall Blog 