| 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 |
