The 2019/2020 tax year begins on the 5 April 2019 and if you are self-employed here are the new tax rates that will affect you.
|Personal Allowance Income Limit||£100,000||£100,000|
The personal allowance is the amount you are allowed to earn tax free.
The Personal Allowance you are entitled can increase if you claim the Marriage Allowance or Blind Person’s Allowance.
The Personal Allowance is reduced by £1 for every £2 of your income over £100,000.
So if you earn more than £123,000 you will lose all your Personal Allowance.
|Personal allowance 0%||£12,500||£11,851|
|Basic rate 20%||£12,501 to £50,000||£11,851 to £46,350|
|Higher rate 40%||£50,001 and £150,000||£46,351 to £150,000|
|Additional rate 45%||over £150,000||over £150,000|
Class 2 National Insurance
|Small profits threshold – no NICs below this threshold||£6,365||£6,205|
|Class 2 National Insurance||£3.00 per week||£2.95 per week|
Class 4 National Insurance
|Small profits threshold – no NICs below this threshold||£8,632||£8,424|
|Class 4 National Insurance 9%||£50,000||£46,350|
|Class 4 National Insurance 2%||over £50,000||over £46,350|
Want to estimate your tax bill? Read my post on Self-Employment Taxes which shows you how to work out how much tax you’ll need to pay on your earnings
Annual Investment Allowance
|Annual Investment Allowance (from 1 January 2019)||£1,000,000||£200,000|
Learn more about the benefits of the Annual Investment Allowance here.
|Cash and annual accounting scheme|
|Cash or annual accounting deregistration|
|Flat rate schemes turnover limit||£150,000||£150,000|
|Flat rate schemes deregistration turnover limit||£230,000||£230,000|
Read more about the VAT flat rate scheme, its benefits and whether you are entitled to join the scheme in this post.
Mileage Allowance Rates
|First 10,000 Miles||Over 10,000 Miles|
|Cars and vans||45p||25p|
Learn more about Claiming Business Travel Here.
Anita is a Chartered Accountant with over a decade of experience taking self-employed business owners from financially confused to business savvy.
She is the creator of the ‘Go Self Employed’ website, which is her corner on the internet where she makes self-employment less terrifying.