Income Tax and Personal Savings
The Chancellor announced the following income tax rates and allowances.
Income tax rates and bands
| 2022/23 | 2023/24 | ||
| Band £ | Rate % | Band £ | Rate % |
| 0 – 37,700 | 20 | 0 – 37,500 | 20 |
| 37,701 – 150,000 | 40 | 37,501 – 125,140 | 40 |
| Over 150,000 | 45 | Over 125,140 | 45 |
Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.
Savings income
| 2022/23 | 2023/24 | |
| Savings allowance basic rate | £1,000 | £1,000 |
| Savings allowance 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
| 2022/23 | 2023/24 | |
| Dividend allowance | £2,000 | £1,000 |
| Dividend ordinary rate | 8.75% | 8.5% |
| Dividend upper rate | 33.75% | 33.75% |
| Dividend additional rate | 39.35% | 39.35% |
Personal allowances
| 2022/23 | 2023/24 | |
| Personal allowance | £12,570 | £12,570 |
| Personal allowance income limit | £100,000 | £100,000 |
| Marriage allowance
Transferable between certain spouses where neither pay tax above the basic rate |
£1,260 |
£1,260 |
| Married couple’s allowance (relief given at 10%) | £9,125 | £9,125 |
| Either partner born before 6 April 1935 | ||
| – minimum amount | £3,530 | £3,530 |
| – income limit | £31,400 | £30,600 |
| Blind person’s allowance | £2,600 | £2,870 |
National Insurance
2022/23 Class 1 (employers & employees)
|
2022-23 |
2023-24 |
|||||
| Thresholds |
Weekly |
Monthly |
Yearly |
Weekly |
Monthly |
Yearly |
| Lower earnings limit | £123 | £533 | £6,396 | £120 | £520 | £6,240 |
| Primary threshold | ||||||
| 6 April 2021 to 5 April 2022 | £184 | £797 | £9,568 | |||
| 6 April 2022 to 5 July 2022 | £190 | £823 | £9,880 | |||
| 6 July 2022 to 5 April 2023 | £242 | £1,048 | £12,570 | |||
| 6 April 2022 to 5 April 2023 (annual: directors) | £229 | £992 | £11,908 | £242 | £1,048 | £12,570 |
| Upper earnings limit | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Secondary threshold | £175 | £758 | £9,100 | £170 | £737 | £8,840 |
| Freeport upper secondary threshold | £481 | £2,083 | £25,000 | N/A | N/A | N/A |
| Upper secondary threshold (under 21) | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Apprentice (under 25) upper secondary threshold | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Veterans’ upper secondary threshold | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Rates | 2022-23 | 2021-22 |
| Employees’ main rate (primary threshold to upper earnings limit) | 13.25% | 12% |
| Employees’ lower rate (above upper earnings limit) | 3.25% | 2% |
| Employers’ rate* | 15.05% | 13.8% |
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