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Hart Accounting, Wirral, Merseyside


Subject to any revisions from the latest Finance Act and to your own particular circumstances and other sources of income you may have and possibly the circumstances of those connected to you, a tax threshold is the amount you can earn or receive before you are required to pay tax. The list below relates only to most commonly encountered income sources, taxes and tax rates.

Income Tax

If your income exceeds the personal allowance threshold, you will start paying tax as follows:

Basic rate on the next £37,700

Higher rate on the next £99,730

Additional rate on any further income

Personal allowance (threshold) for individuals

Most common tax code for person under state pension age


£13,570 Wages for one year

£12,570 Personal threshold (tax exempt amount)

£1,000 Excess over the threshold

20% Applicable rate of tax (Basic rate)

£200 Income Tax due for the year (if no other income)

Class 1 National Insurance (NIC)


Threshold for employees to earn credits towards state pension (per annum)

Threshold for employees to start paying NIC (per annum)

Rate for employees (threshold from 06 July 2022)

*If earnings exceed £967 per week, employees pay a reduced 3.25% on any earnings exceeding this higher threshold.


Threshold above which employers start paying NIC (per annum, per employee).

Rate for employers

National Insurance for sole traders and partners

Class 2 NIC -to be abolished next year

Rate (payable via your tax return)


Class 4 NIC


Main Rate  - for profits from £11908 to 50270


Upper Rate - for profits over £50270









Amount you can earn(including the personal allowance £12570 and basic rate band £37700)  

…before you start paying income tax at 40% (or 32.5% for dividends) is now ….

VAT registration threshold from 01 April 2019 remains…

And VAT de-registration threshold from 01 April 2019 remains…






£3.15 p.w.






If you are one of Hart Accounting’s clients and there is anything else you would find useful on this page, please let us know….