Tax & Allowances
Income Tax Bands & Tax Rates of Taxable Income
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018 – 19 |
Main Rates |
Basic Rate |
£11001 – 32,000 |
£11501 – 33,500 |
£1,851 – 46,350 |
20% |
Higher Rate |
£32,001-150,000 |
£33,500-150,000 |
234 |
40% |
Additional Rate |
Over £150,000 |
Over £150,000 |
234 |
45% |
Dividend Rates
Dividend ordinary rate – for dividend otherwise taxable at the basic rate – 7.5%
Dividend upper rate – for dividends otherwise taxable at the higher rate – 32.5%
Dividend additional rate – for dividends otherwise otherwise taxable – 38.1%
Income Tax Allowances
Personal Allowances
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Personal Allowance |
£11,000 |
£11,500 |
£11850 |
Income limit for personal allowance |
£100,000 |
£100,000 |
£100,000 |
Marriage Allowance
Class 1 NICs: Employee and employer rates and thresholds (£ per week)
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018 – 19 |
Income limit Married Couple’s Allowances |
£27,700 |
£28,000 |
£46,350 |
Minimum amount of married couple’s allowance |
£3,220 |
£3,260 |
£3,260 |
Marriage Allowance |
£1,100 |
£1,150 |
£1,190 |
Maximum amount of married couples allowance |
£8,355 |
£8,445 |
£8,445 |
Income limit Married Couple’s Allowances |
£27,700 |
£28,000 |
£46,350 |
Minimum amount of married couple’s allowance |
£3,220 |
£3,260 |
£3,260 |
Blind Persons Allowance
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018 – 2019 |
Blind Person’s Allowance |
£2,290 |
£2,320 |
£2,390 |
Dividend Allowance
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Dividend Allowance |
£5,000 |
£5,000 |
£2,000 |
Personal Saving Allowance
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Personal savings allowance for basic rate taxpayers |
£1,000 |
£1,000 |
£1,000 |
Personal savings allowance for basic rate taxpayers |
£500 |
£500 |
£500 |
National Insurance Contributions (NIC)
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Weekly Lower Earnings Limit (LEL) |
112 |
113 |
116 |
Weekly Primary Threshhold (PT) |
155 |
157 |
162 |
Weekly Secondary Threshold (ST) |
156 |
157 |
162 |
Upper Earnings Limit (UEL) |
827 |
866 |
892 |
Upper Secondary Threshold for under 21s |
827 |
866 |
892 |
Apprentice Upper Secondary Threshold (AUST) for under 25s |
827 |
866 |
866 |
Employment Allowance (per employer) |
3,000 per year |
3,000 per year |
3,000 per year |
Employee’s (primary) Class 1 contribution rates |
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2019-19 |
Earnings band |
NIC rate (per cent) |
NIC rate (per cent) |
NIC rate (per cent) |
Below LEL |
0 |
0 |
0 |
LEL – PT |
0 |
0 |
0 |
PT – UEL |
12 |
12 |
12 |
Above EUL |
2 |
2 |
2 |
Employee’s (secondary) Class 1 contribution rates |
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Earnings band |
|
|
Below ST |
0 |
0 |
0 |
Above ST |
13.8 |
13.8 |
13.8 |
Employer’s (Secondary) Class 1 contribution rates for employees under 21 |
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2017-18 |
Earnings band |
|
|
Below UST |
0 |
0 |
0 |
Above UST |
13.8 |
13.8 |
13.8 |
Employer’s (Secondary) Class 1 contribution rates for Apprentices under 25 |
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Earnings band |
|
|
Below AUST |
0 |
0 |
0 |
Above AUST |
13.8 |
13.8 |
13.8 |
Class 2 NICs: Self-employed rates and thresholds (£ per week)
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Small Profits Threshold (SPT) |
5,965 per year |
6,025 per year |
6,205 per year |
Class 2 contribution rates |
Tax year 2016-17 |
Tax year 2017-18 |
Annual Profits (£ a year) |
£ per week |
£ per week |
Below SPT |
0 |
0 |
Above SPT |
2.80 |
2.85 |
Special Class 2 rate for share fishermen |
3.45 |
3.50 |
Special Class 2 rate for volunteer development workers |
5.60 |
5.65 |
Class 4 NICs: Self-employed rates and thresholds (£ per year)
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Lower Profits Limit (LPL) |
8,060 |
8,164 |
8,424 |
Upper Profits Limit (UPL) |
43,000 |
45,000 |
46,350 |
Working and Child tax credits, child benefit and guardians allowance
Working and child tax credits
£ per year (unless stated) |
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Basic element |
£1,960 |
£1,960 |
£1,960 |
Couple and lone parent element |
£2,010 |
£2,010 |
£2,010 |
30 hour element |
£810 |
£810 |
£810 |
Disabled worker element |
£2,970 |
£3,000 |
£3,090 |
Servere disability element |
£1,275 |
£1,290 |
£1,330 |
Childcare element of the working tax credit |
|
|
Maximum eligible cost for one child |
£175 per week |
175 per week |
175 per week |
Percentage of eligible costs covered |
70% |
70% |
70% |
Child tax credit |
|
|
Family element |
£545 |
£545 |
£545 |
Child element |
£2,780 |
£2,780 |
£2,780 |
Disabled child element |
£3,140 |
£3,175 |
£3,275 |
Severely disabled child element |
£1,275 |
£1,290 |
£1,325 |
Child benefit (£ per week)
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Eldest/only child |
£20.70 |
£20.70 |
£20.70 |
Other children |
£13.70 |
£13.70 |
£13.70 |
Guardians allowance |
£16.55 |
£16.70 |
£17.20 |
Tax free savings accounts
|
Tax Year 2016 – 17 |
Tax Year 2017-18 |
Tax Year 2018-19 |
Individual Savings Account (ISA) subscription limit |
£15,240 |
£20,000 |
£20,000 |
Junior ISA subscription limit |
£4,080 |
£4,128 |
£4,260 |
Child Trust Fund (CTF) subscription limit |
£4,080 |
£4,128 |
£4,260 |