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We offer a range of high quality accounting, financial and business services in and around Milton Keynes.

Income tax and personal savings

The Chancellor announced the following income tax rates and allowances.

Income tax rates and bands

2021/22 2020/21
Band £ Rate % Band £ Rate %
0 - 37,700 20 0 - 37,500 20
37,701 - 150,000 40 37,501 - 150,000 40
Over 150,000 45 Over 150,000 45

Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.

Savings income

Savings Allowance 2021/22 2020/21
Basic rate £1,000 £1,000
Higher rate £500 £500

A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.

Dividend income

Allowance/Rate 2021/22 2020/21
Dividend allowance £2,000 £2,000
Dividend ordinary rate 7.5% 7.5%
Dividend upper rate 32.5% 32.5%
Dividend additional rate 38.1% 38.1%

Personal allowances

  2021/22 2020/21
Personal allowance £12,570 £12,500
Personal allowance income limit £100,000 £100,000
Marriage allowance
Transferable between certain spouses where neither pay tax above the basic rate		 £1,260 £1,250
Married couple's allowance (MCA) (relief given at 10%)
Either partner born before 6 April 1935		 £9,125 £9,075
- minimum amount £3,530 £3,510
- income limit £30,400 £30,200
Blind person's allowance £2,520 £2,500

Scottish income tax rates and bands

Savings and dividend income are taxed using UK rates and bands.

2021/22 2020/21
Band £ Rate % Band £ Rate %
0 - 2,097 19 0 - 2,085 19
2,098 - 12,726 20 2,086 - 12,658 20
12,727 - 31,092 21 12,659 - 30,930 21
31,093 - 150,000 41 30,931 - 150,000 41
Over 150,000 46 Over 150,000 46

Welsh income tax rates

Although income tax for Wales has been devolved, Welsh resident taxpayers continue to pay the same overall rates as taxpayers in England and Northern Ireland.

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Tax Calendar

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Calculators

B2B’s interactive tax calculators can be used to calculate VAT due, the taxable benefits on your company car and how much your savings are worth.

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The latest news

Keep up to date on the latest from the world of business and tax with our daily news stories.

26 Apr 2024

HMRC clarifies tax rules for WFH commuting

HMRC has updated guidance on when tax relief is available on travel expenses for staff who work from home.

25 Apr 2024

UK borrowing £7.6 billion lower than last year, data shows

Figures have shown that UK borrowing over the last financial year was £7.6 billion lower when compared to the year before.

24 Apr 2024

Inheritance tax receipts hit a record high of £7.5 billion

Data published by HMRC has revealed that inheritance tax (IHT) receipts rose to a record high of £7.5 billion in the 2023/24 tax year.

23 Apr 2024

Small firms confused over upcoming import rules

The government has been accused of confusing small firms before new import rules on plant and food products are introduced, according to the Federation of Small Businesses (FSB).

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Chartered Tax Adviser

Registered in England, Company Registration number – 7906656. Registered Office – 58b High Street, Stony Stratford, Milton Keynes, MK11 1AQ. Registered with the Chartered Institute of Taxation as a firm of Chartered Tax Advisers. Registered to carry out audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.