Key Tax Rates

 

 

Rates & Allowances          
 

2014/2015

2015/2016 2016/2017 2017/2018 2018/2019
Income Tax          
Personal Allowances          
age under 65 10,000 10,600 11,000 11,500 11,850
age 65 - 74 10,600 10,600 11,000 11,500 11,500
age 75 and over 10,660 10,660 11,000 11,500 11,500
Age-related income limit 27,000 27,700 27,700 28,000 28,900

 *Age allowance reduced by £1 for every £2 over the above income limit

           
Married couples - age 75+ 8,165 8,355 8,355 8,445 8,695
Transferable marriage allowance N/A 1,100 1,100 1,150 1,190
           
Income Tax Bands          
10% on savings up to 2,880 5,000 5,000 5,000

5,000

20% Basic rate up to 31,865 31,785 32,000 33,500 34,500
40% higher rate up to 31,865 - 150,000 31,785 - 150,000 32,000 - 150,000 33,500 - 150,000 34,500 - 150,000
Income limit on married couples allowance

 

N/A

 

N/A 27,700 28,000

28,900

           
Dividends          
Basic rate / over  ( 5,000 / 2,000 ) 10% 10% ( 7.5% ) ( 7.5% ) ( 7.5% )
Higher rate 32.5% 32.5% 32.5% 32.5% 32.5%
Tax free dividend N/A N/A 5,000 5,000 2,000
           
National Insurance          
Class 1 - Employee          
No NIC's on the first £153 pw £156 pw £156 pw £157 pw £162 pw
Percentage payable 12% 12% 12% 12% 12%
Upper earnings limit £805 pw £815 pw £827 pw £866 pw £892 pw
Percentage payable 2% 2% 2% 2% 2%
           
Class 2 - Self Employed          
Flat rate per week £2.75 £2.80 £2.80 £2.85 £2.95
Small earnings exemption

5,885

5,965 5,965 6,025 6,205
           
Class 3 - Voluntary          
Flat rate per week £13.90 £14.10 £14.10 £14.25 £14.65
           
Class 4 - Self Employed          
Lower Limit 7,956 8,060 8,060 8,164 8,424
Percentage payable 9% 9% 9% 9% 9%
Upper Profits Limit 41,865 42,385 43,000 45,000 46,350
Percentage payable 2% 2% 2% 2% 2%
           
Capital Gains Tax          
Annual exempt amount 11,000 11,100 11,100 11,300 11,700
Basic rate taxed at 18% 18% 18% 18% 18%
Higher rate taxed at 28% 28% 28% 28% 28%
           
Corporation Tax          
Small companies rate 20% 20% 20% 19% 19%
           
Capital Allowances          
Written down allowance 8 / 18% 8 / 18% 8 / 18% 8 / 18% 8 / 18%
Annual investment allow. 100% 100% 100% 100% 100%
AIA Maximum Limit 500,000 500,000 200,000 200,000

200,000

           
Mileage Allowances          
Up to 10,000 miles 45p 45p 45p 45p 45p
Over 10,000 miles 25p 25p 25p 25p 25p