Taxable Income bands and corresponding rates

Taxable Income bands and corresponding rates
2015/16 2016/17
Basic rate 20% 20%
Higher rate 40% 40%
Additional rate 45% 45%
Starting rate of saving income 0% 0%
Dividend ordinary rate (effective rate with tax credit) 0% 0%
Dividend higher rate (effective rate with tax credit) 32.5% (25%) 32.5%
Dividend additional rate (effective rate with tax credit) 37.5% (30.6%) 38.1%
Starting rate limit (savings income) £5,000 £5,000
Basic rate band £0 – 31,785 £0 – 32,000
High rate band £31,786-150,000 £31,786-150,000
Additional rate band Over £150,000 Over £150,000
Income Tax Allowances
Personal allowance:
Born before 5 April 1938 £10,600 £11,000
Born after 5 April 1938 £10,660 £11,000
Income limit for personal allowances £100,000 £100,000
Income limit for personal allowances (born before 6 April 1938) £27,700 £27,700
Marriage allowance:
Marriage allowance £1,060 £1,100
Married couple’s allowance for those born before 6 April 1935
Maximum amount of MCA £8,355 £8,355
Maximum amount of MCA £3,220 £3,220
Blind person’s allowance:
Blind person’s allowance 2,290 2,290
Dividend allowance:
Dividend allowance - £5,000
Personal savings allowance:
For basic rate taxpayer - £1,000
For higher rate taxpayer - £500
National Insurance Contribution Thresholds
  2017/18
£ per week
2016/17
£ per week
Weekly lower earnings limit (LEL) 113 112
Weekly primary threshold (PT) 157 155
Weekly secondary threshold (ST) 157 156
Upper earnings limit (UEL) 866 827
Upper profits limit (per year) 45,000 43,000
Upper Secondary Threshold for U21’s 866 827
Small Profits Threshold (SPT) 6,025 5,965
Lower Profits Limit (LPL) 8,164 8,060
Employment allowance 3,000 per year
per employer
3,000 per year
per employer
Apprentice Upper Secondary Threshold (AUST) For under 25s 866 827
Class 1 National Insurance rates
Employee (Primary)Earnings (£ a week) NIC Rate (%) NIC Rate (%)
Below LEL 0 0
LEL - PT 0 0
PT - UEL 12 12
Above UEL 2 2
Below ST 0 0
Above ST 13.8 13.8
Self-employed National Insurance contribution rates Class 2 NIC
Annual Profits (£ a year) Class 2 (£ a week) Class 2 (£ a week)
Below SPT 0.00 0.00
Above SPT 2.85 2.80
Class 4 NIC Annual Profits (£ a year) NIC Rate (%) NIC Rate (%)
Below LPL 0 0
LPL - UPL 9 9
Above UPL 2 2

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