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July 14, 2025📇 2025/26 UK Tax Cards – Your Essential Guide
The new tax year has arrived, and with it come updated rates, allowances, and thresholds that could impact your take-home pay, business profits, and tax planning. Whether you’re self-employed, a company director, a landlord, or just trying to make the most of your money, our 2025/26 tax card summary breaks down the key figures you need to know.
💼 Income Tax Bands (England, Wales & Northern Ireland)
| Band | Tax Rate | Income Range |
|---|---|---|
| Personal Allowance | 0% | Up to £12,570 |
| Basic Rate | 20% | £12,571 – £50,270 |
| Higher Rate | 40% | £50,271 – £125,140 |
| Additional Rate | 45% | Over £125,140 |
⚠️ Note: Personal allowance is reduced by £1 for every £2 earned above £100,000.
📉 Dividend Tax Rates
If you take income from your company in the form of dividends, here’s what to expect:
- Dividend allowance: £500
- Basic rate: 8.75%
- Higher rate: 33.75%
- Additional rate: 39.35%
💸 Capital Gains Tax (CGT)
Selling shares, property, or other assets? Here’s what applies:
- Annual exemption: £3,000
- Basic rate taxpayers: 10% (18% for residential property)
- Higher/additional rate: 20% (24% for residential property)
✅ Tip: Jointly owned assets may double your tax-free exemption.
🏢 Corporation Tax
For limited companies:
- 19% on profits up to £50,000
- Tapered between £50,001 and £250,000
- 25% on profits over £250,000
🧾 National Insurance (NI)
For Employees (Class 1):
- 0% on earnings up to £12,570
- 8% on £12,571 – £50,270
- 2% on income above £50,270
For Self-Employed (Class 4):
- 0% on profits up to £12,570
- 6% on £12,571 – £50,270
- 2% above £50,270
🏠 Other Key Allowances & Thresholds
- ISA limit: £20,000
- Junior ISA: £9,000
- Mileage Allowance: 45p per mile (first 10,000 miles), 25p thereafter
- Child Benefit Charge: Applies from £60,000 income, fully removed at £80,000+
💡 Tax Tips for 2025/26
- Use your ISA allowance early in the year for tax-free growth.
- Consider timing asset disposals to maximise your CGT allowance.
- If you’re a director, balance salary and dividends tax-efficiently.
- Self-employed? Don’t forget about quarterly updates under Making Tax Digital.
📞 Need Help Navigating the New Tax Year?
At Taxes Done Right Ltd, we specialise in helping individuals and businesses stay compliant while minimising tax legally. Whether you’re due a tax review or just want peace of mind, we’re here to help.
