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Rates and allowances

Personal Allowances 2020/21
Single Person £14,250
Jointly Assessed Couple £28,500
Additional Personal Allowance £6,400
Blind Person £2,900
Disabled Person £2,900
Income Tax rates
Standard Rate 10%
Higher Rate 20%
Non-Resident Rate 20%
Standard rate tax thresholds
Single Person £6,500
Joint Assessed couple £13,000
Balance taxable at 20%
Income Tax Cap amount
Single Person £200,000
Joint Assessed couple £400,000

Income Tax Rates and Allowances

 14/1515/1616/1717/1818/1919/2020/21
Standard rate 10% 10% 10% 10% 10% 10% 10%
Single person standard rate band 10500 10500 8500 6500 6500 6500 6500
Jointly Assessed couple standard rate band 21000 21000 17000 13000 13000 13000 13000
Higher rate 20% 20% 20% 20% 20% 20% 20%
Non-resident rate 20% 20% 20% 20% 20% 20% 20%
Single person Tax Cap amount 120,000 125,000 125,000 125,000 150,000 175,000 200,000
Jointly Assessed Couple Tax Cap amount 240,000 250,000 250,000 250,000 300,000 350,000 400,000
Single allowance 9500 9500 10500 12500 13250 14000 14250
Additional personal allowance* 6400 6400 6400 6400 6400 6400 6400
Blind persons / Disabled persons 2900 2900 2900 2900 2900 2900 2900
Age allowance** 1000 1000 1000 0 0 0 0
Non-resident allowance 0 0 0 0 0 0 0
Mortgage and Loan Interest limit*** 7500 7500 7500 5000 5000 5000 5000
BIK****exemption (not car benefit) 400 400 400 400 600 600 600
Nursing expenses limit 9300 9300 9300 12500 12500 12500 12500
Charitable Donations 7000 7000 7000 7000 7000 7000 7000
Private medical insurance limit 1800 1800 1800 1800 1800 1800 1800
Homestay (TT fortnight only) 1500 1800 1800 1800 1800 1800 1800

IMPORTANT NOTE - From 6 April 2012, tax relief for certain general deductions is restricted to 10% for individuals. The general deductions affected are; interest paid on mortgages or loans, charitable donations or deeds of covenant, private medical insurance payments, nursing expenses and educational deeds of covenant entered into on or before 5 April 2011 and where the student is in qualifying full time education at that date. For tax years prior to 2012/13, general deductions were treated as reducing an individual’s taxable income and tax relief was therefore given at the individual’s effective rate of income tax. From 6 April 2012, 10% tax relief for the affected general deductions will be treated as reducing an individual’s total liability.

* Single parent additional allowance

** Age allowance was available to Isle of Man residents who are 65 or over at the start of the tax year

*** Mortgage and Loan Interest limit is for a single person, limit is doubled for a jointly assessed couple

**** Benefit in Kind

Interest and Repayment Supplement rates can be found in Practice Note PN 154/09.

For information on VAT see Customs and Excise.

National Insurance Rates and Thresholds

N.B. Rates were correct for the relevant tax year but may since have risen to the highest rate in force.

Item (per week unless stated otherwise)14/1515/1616/1717/1818/1919/2020/21
Lower Earnings Limit, Class 1 (LEL) £111 £112 £112 £113 £116 £118 £120
Upper Accrual Point (UAP) £770 £770 £770 £770 £770 £770 £770
Upper Earnings Limit, Class 1 (UEL) £784 £784 £784 £784 £784 £784 £823
Primary Threshold £120 £120 £118 £118 £118 £125 £138
Secondary Threshold £117 £117 £118 £118 £118 £125 £138
Prescribed annual equivalent of primary thresholds £6,240 £6,240 £6,136 £6,136 £6,136 £6,500 £7,176
Class 1 employees' primary rate of NI (between primary threshold and UEL) 11% 11% 11% 11% 11% 11% 11%
Class 1 employees' additional rate of NI (above the UEL) 1% 1% 1% 1% 1% 1% 1%
Class 1 employers' rate of NI (on all earnings above secondary threshold) 12.8% 12.8% 12.8% 12.8% 12.8% 12.8% 12.8%
Employee's contracted-out rebate (COSR schemes only) 1.6% 1.6% 1.6% 1.6% 1.6% N/A* N/A*
Employer's contracted-out rebate, salary related scheme (COSR) 3.7% 3.7% 3.7% 3.7% 3.7% N/A* N/A*
Class 2 rate self-employed £2.70 £5.40 £5.40 £5.40 £5.40 £5.40 £5.40
Class 2 small earnings exception level (annual) £5,725 £5,995 £6,136 £6,136 £6,136 £6,500 £7,176
Class 2 rate for volunteer development workers £5.55 £5.60 £5.60 £5.65 £5.80 £5.90 £6.00
Class 2 for share fishermen £3.35 £6.70 £6.70 £6.70 £6.70 £6.70 £6.70
Class 3 voluntary contributions £13.90 £14.10 £14.10 £14.25 £14.65 £15.00 £15.30
Class 4 lower profits limit (annual) £6,136 £6,136 £6,136 £6,136 £6,136 £6,500 £7,136
Class 4 upper profits limit (annual) £40,768 £40,768 £40,768 £40,768 £40,768 £40,768 £42,796
Class 4 rate between the lower and upper limits 8% 8% 8% 8% 8% 8% 8%
Class 4 rate above the upper limit 1% 1% 1% 1% 1% 1% 1%

*contracting out abolished from 6 April 2019

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