DIY Accounting Submit

DIY Accounting Submit

Rates and allowances: the figures behind your returns

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Business type

Enter income and expenses excluding VAT. Every expense is taken as standard-rated.

VAT scheme
VAT to pay
Mileage allowance
Capital allowances
Taxable profit
Personal Allowance after any reduction
Income tax
Class 4 National Insurance
Voluntary Class 2 (not in the total)
Income tax and Class 4 National Insurance
CIS deducted
Left to pay after CIS
Accounting period
Marginal relief
Corporation Tax
Profit after tax
Corporation Tax by financial year
Financial year Days Profit share Rate Tax before relief Marginal relief Tax

Self-employed and sole traders

Tax years run from 6 April to 5 April.

Income tax
Rate or allowance 2025-26 2026-27 Source
Personal Allowance £12,570 £12,570 12
Income limit for Personal Allowance £100,000 £100,000 12
Basic rate 20% 20% 10
Basic rate band £37,700 £37,700 10
Higher rate 40% 40% 11
Additional rate threshold £125,140 £125,140 9
Additional rate 45% 45% 9
National Insurance
Rate or allowance 2025-26 2026-27 Source
Class 4 lower profits limit £12,570 £12,570 15
Class 4 upper profits limit £50,270 £50,270 15
Class 4 main rate 6% 6% 16
Class 4 additional rate 2% 2% 16
Class 2 weekly rate (voluntary) £3.50 £3.65 14
Class 2 small profits threshold £6,845 £7,105 14
Capital allowances
Rate or allowance 2025-26 2026-27 Source
Annual Investment Allowance limit £1 million £1 million 1
Main pool writing down allowance 18% 14% 3, 4
Special rate pool writing down allowance 6% 6% 4
Mileage allowances
Rate or allowance 2025-26 2026-27 Source
Cars and vans, first 10,000 business miles 45p 55p 13
Cars and vans, over 10,000 business miles 25p 25p 13
Business miles at the higher rate 10,000 10,000 13
Construction Industry Scheme deductions
Rate or allowance 2025-26 2026-27 Source
Registered subcontractor 20% 20% 5
Subcontractor not registered 30% 30% 5
Gross payment status No deduction No deduction 6

VAT

VAT
Rate or allowance 2025-26 2026-27 Source
Registration threshold £90,000 £90,000 20
Standard rate 20% 20% 21
Flat Rate Scheme joining limit £150,000 £150,000 17
Flat Rate Scheme leaving limit £230,000 £230,000 18
Flat rate for a limited cost business 16.5% 16.5% 19

Limited companies

Financial years run from 1 April to 31 March.

Corporation Tax
Rate or allowance FY2025 FY2026 Source
Main rate 25% 25% 8
Small profits rate 19% 19% 8
Lower limit £50,000 £50,000 7
Upper limit £250,000 £250,000 7
Marginal relief fraction 3/200 3/200 7
Capital allowances for companies
Rate or allowance FY2025 FY2026 Source
Full expensing, main pool plant and machinery 100% 100% 2
Annual Investment Allowance limit £1 million £1 million 1
Main pool writing down allowance 18% 14% 3, 4
Special rate pool writing down allowance 6% 6% 4

Sources

Each entry shows the words from the gov.uk page it comes from and the day we read that page.

  1. The AIA amount is £1 million.

  2. Full expensing lets you deduct 100% of the cost of qualifying plant and machinery from your profits before tax in the year it was bought.

  3. The main rate of writing down allowance changed from 18% to 14% on: 1 April 2026 for Corporation Tax 6 April 2026 for Income Tax

  4. main pool with a rate of 14% from April 2026, and 18% before special rate pool with a rate of 6%

  5. they’ll take deductions at the standard rate of 20% if both of these apply: you’re registered for CIS they can verify you If either do not apply, contractors will take deductions at a higher rate of 30%.

  6. If you have gross payment status, the contractor will not take deductions from your payments.

  7. Rate 2026 2025 2024 2023 2022 Small profits rate (companies with profits under £50,000) 19% 19 % 19% 19% — Main rate (companies with profits over £250,000) 25% 25% 25% 25% — Main rate (all profits except ring fence profits) — — — — 19% Marginal Relief lower limit £50,000 £50,000 £50,000 £50,000 — Marginal Relief upper limit £250,000 £250,000 £250,000 £250,000 — Standard fraction 3/200 3/200 3/200 3/200 —

  8. Rate 2026 2025 2024 2023 2022 Small profits rate (companies with profits under £50,000) 19% 19 % 19% 19% — Main rate (companies with profits over £250,000) 25% 25% 25% 25% —

  9. Higher rate 40% £37,701 to £125,140 £37,701 to £125,140 £37,701 to £125,140 £37,701 to £125,140 Additional rate 45% Over £125,141 Over £125,141 Over £125,141 Over £125,141

  10. England, Northern Ireland and Wales Band Rate Income after allowances 2026 to 2027 Income after allowances 2025 to 2026 Income after allowances 2024 to 2025 Income after allowances 2023 to 2024 Starting rate for savings 0% Up to £5,000 Up to £5,000 Up to £5,000 Up to £5,000 Basic rate 20% Up to £37,700 Up to £37,700 Up to £37,700 Up to £37,700

  11. England, Northern Ireland and Wales Band Rate Income after allowances 2026 to 2027 Income after allowances 2025 to 2026 Income after allowances 2024 to 2025 Income after allowances 2023 to 2024 Starting rate for savings 0% Up to £5,000 Up to £5,000 Up to £5,000 Up to £5,000 Basic rate 20% Up to £37,700 Up to £37,700 Up to £37,700 Up to £37,700 Higher rate 40% £37,701 to £125,140 £37,701 to £125,140 £37,701 to £125,140 £37,701 to £125,140

  12. Allowances 2026 to 2027 2025 to 2026 2024 to 2025 2023 to 2024 Personal Allowance £12,570 £12,570 £12,570 £12,570 Income limit for Personal Allowance £100,000 £100,000 £100,000 £100,000

  13. Approved mileage rates from tax year 2026 to 2027 Vehicle type First 10,000 business miles in the tax year Each business mile over 10,000 in the tax year Cars and vans 55p 25p Motor cycles 24p 24p Bicycles 20p 20p Approved mileage rates from tax year 2011 to 2026 Vehicle type First 10,000 business miles in the tax year Each business mile over 10,000 in the tax year Cars and vans 45p 25p

  14. 3.1 Class 2 Thresholds 2026 to 2027 2025 to 2026 2024 to 2025 2023 to 2024 Small Profits Threshold amount per year £7,105 £6,845 £6,725 £6,725 Rate per week £3.65 £3.50 £3.45 £3.45

  15. 3.2 Class 4 £ per year 2026 to 2027 2025 to 2026 2024 to 2025 2023 to 2024 Lower Profits Limit Self-employed people pay Class 4 National Insurance on profits above the Lower Profits Limit £12,570 £12,570 £12,570 £12,570 Upper Profits Limit Self-employed people pay a lower rate of Class 4 National Insurance on profits above the Upper Profits Limit £50,270 £50,270 £50,270 £50,270

  16. 3.2 Class 4 £ per year 2026 to 2027 2025 to 2026 2024 to 2025 2023 to 2024 Lower Profits Limit Self-employed people pay Class 4 National Insurance on profits above the Lower Profits Limit £12,570 £12,570 £12,570 £12,570 Upper Profits Limit Self-employed people pay a lower rate of Class 4 National Insurance on profits above the Upper Profits Limit £50,270 £50,270 £50,270 £50,270 Rate between Lower Profits Limit to the Upper Profits Limit 6% 6% 6% 9% Rate above Upper Profits Limit 2% 2% 2% 2%

  17. you expect your VAT taxable turnover to be £150,000 or less (excluding VAT ) in the next 12 months

  18. on the anniversary of joining, your turnover in the last 12 months was more than £230,000 (including VAT )

  19. 2% of your turnover £1,000 a year (if your costs are more than 2%) This means you pay a higher rate of 16.5%.

  20. your total taxable turnover for the last 12 months goes over £90,000 (the VAT threshold)

  21. VAT rates for goods and services % of VAT What the rate applies to Standard rate 20% Most goods and services