Tax Table
| 2017 – 18 | 2016 – 17 | |||||
|---|---|---|---|---|---|---|
| Type | Income Band | Rate % | Dividend Rate % | Income Band | Rate % | Dividend Rate % |
| Basic rate | Up to £33,500 | 20.0% | 7.5% | Up to £32,000 | 20.0% | 7.5% |
| Higher rate | £33,501 to £150,000 | 40.0% | 32.5% | £32,001 to £150,000 | 40.0% | 32.5% |
| Additional rate | Over £150,001 | 45.0% | 38.1% | Over £150,001 | 45.0% | 38.1% |
If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate will not be available for savings income. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax-free.
First £5,000 you receive in dividends from investments tax free.
From 6 April 2016 onwards the 10% tax credit on dividends is abolished.
| Trusts | 2017 – 18 | 2016 – 17 | ||||
|---|---|---|---|---|---|---|
| Dividend type income – ordinary rate | 7.5% | 7.5% | ||||
| Savings income | 20% | 20% | ||||
| Other income | 20% | 20% | ||||
| Rate applicable to trusts for all other income | 45% | 45% | ||||
| Dividend type income – trust rate | 38.1% | 37.5% | ||||
Trustees don’t qualify for the new dividend allowance, introduced for individuals from 6 April 2016. This means trustees pay tax on all dividends depending on the tax band they fall within.
| Income Tax Allowance | 2017 – 18 | 2016 – 17 | ||||
|---|---|---|---|---|---|---|
| Personal allowance | A, D | £11,500 | £11,000 | |||
| Blind person’s allowance | £2,320 | £2,290 | ||||
| Other income | 20% | 7.5% | 20% | |||
| Married couple’s allowance (MCA) Either partner born before 6th April 1935. |
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| Maximum | B, C | £8,445 | £8,355 | |||
| Minimum | B, C | £3,260 | £3,220 | |||
| Dividend allowance | £5,000 | £5,000 | ||||
A. Personal allowance is reduced by £1 for every £2 that net adjusted income exceeds £100,000.
B. Reduced by £1 for each £2 of income (less deductions) which exceeds £28,000 (2016/17: £27,700).
C. Restricted to relief at 10%.
D. Spouses or civil partners will be able to transfer £1,150 (2016/17: £1,100) of their unused Personal Allowance to their partner. This is available provided neither person pays tax at the higher rate. This is not available if the couple are in receipt of married couple’s allowance.
| Construction Industry Scheme deduction rate: | 2017 – 18 | 2016 – 17 | ||||
|---|---|---|---|---|---|---|
| Standard (registered) | 20% | 20% | ||||
| Higher (not registered) | 30% | 30% | ||||
| Class 1 (not contracted out) | Employer | Employer | ||||
|---|---|---|---|---|---|---|
| Payable on weekly earnings of | ||||||
| Up to £113 (lower earnings limit) | Nil | Nil | ||||
| £113 – £157 (primary threshold) | 0% | 0% (B) | ||||
| £157.01 – £866 (upper accrual point) | 13.80% | 12% | ||||
| Over £866 (upper earnings limit) | 13.80% | 2% | ||||
| Over state retirement age, the employee contribution is generally Nil | ||||||
| Over £866 (upper earnings limit) | 13.80% | 2% | ||||
| Class 1A (on relevant benefits) | 13.80% | Nil | ||||
| Class 1B (on PAYE settlement arrangement) | 13.80% | Nil | ||||
| Employer allowance | Up to £3,000 per year | |||||
| Class 2 (Self employed) | £2.85 per week | |||||
| Limit of net earnings for exemption | £6,025 per annum | |||||
| Class 3 (Voluntary) | £14.25 per week | |||||
| Class 4 @ (Self employed on profits) | ||||||
| £8,164 to £45,000 | 9% | |||||
| Excess over £45,000 | 2% | |||||
@ Exemption applies if state retirement age was reached by 6 April 2017.
Note:
- A. For apprentices under the age of 25, the Apprentice Upper Secondary Threshold is also £866 per week. This means that employers will not be required to pay employer Class 1 NICs in respect of the wages they pay to apprentice employees under the age of 25 up to £866 per week.
- B. No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects certain basic state benefit entitlements.
- C. Employers are not required to pay employer Class 1 NICs in respect of the wages they pay to employees under the age of 21 up to £866 per week.
| Details | 2017-18 | 2016-17 | ||||
|---|---|---|---|---|---|---|
| Exemptions | ||||||
| Individuals, estates, etc | 11,300 | 11,100 | ||||
| Trusts generally | 5,650 | 5,550 | ||||
| Chattels proceeds (Proceed per item or set) | 6,000 | 6,000 | ||||
| Rates | ||||||
| Standard rates – Up to £33,500 (2016-17: £32,000) | 10% or 18% (A) | 10% or 18% (A) | ||||
| Higher rates – From £33,501 (2016-17: £32,001) | 20% or 28% (A) | 20% or 28% (A) | ||||
| Entrepreneurs’ Relief | ||||||
| Lifetime limit | 10,000,000 | |||||
| The first gains up to above limit will be charged at following rate. Gains in excess of the exception will be charged at the normal rate. | ||||||
| Entrepreneurs’ Relief Rate | 10% | |||||
| For trading businesses & companies (min 5% employee shareholding) held for 1year+. | ||||||
CGT rates of 10% and 20% introduced for disposals on or after 6 April 2017 do not apply to transactions involving residential property or carried interest. CGT rates for these transactions remain at 18% and 28%
| Profits £ | 2017-18 | 2016-17 | ||||
|---|---|---|---|---|---|---|
| Corporation Tax rate | 19.00% | 20.00% | ||||
The rate of corporation tax will remain 19% for 2018/19 and 2019/20, and will decrease further to 17% for 2020/21
| Details | Current Rate | |||||
|---|---|---|---|---|---|---|
| Standard Rate | 20% | |||||
| Reduced Rate (certain fuel and power, some energy saving materials, some residential property works etc.) | 5% | |||||
| Zero Rate (newspapers, children’s clothes etc.) | 0% | |||||
| Taxable Turnover Limits | ||||||
| Registration – last 12 months or next 30 days over | £85,000 from 1 April 2016 | |||||
| Deregistration – next 12 months under | £83,000 from 1 April 2016 | |||||
| Cash accounting scheme – up to | £1,350,000 | |||||
| Flat rate scheme – up to | £150,000 | |||||
| Annual accounting scheme – up to | £1,350,000 | |||||
| 2017 – 18 | 2016 – 17 | |||||
|---|---|---|---|---|---|---|
| Type | WEEKLY | ANNUAL | WEEKLY | ANNUAL | ||
| Single Pension | 122.30 | 6,359.60 | 119.30 | 6,203.60 | ||
| Dependant’s addition | 73.30 | 3,811.60 | 71.50 | 3,718.00 | ||
| Total married Pension | 195.60 | 10,171.20 | 190.80 | 9,921.60 | ||
| New State Pension | 159.55 | 8,296.60 | 155.65 | 8,093.80 | ||
Chargeable on employees earning £8,500 or over (including benefits), and directors.
Benefit is calculated as a percentage of the Price of the car. This percentage depends upon the rate at which the car emits carbon dioxide (CO2), and the fuel type.
| Table for the year 2017 – 18 | ||||||
|---|---|---|---|---|---|---|
| CO2 emissions | Appropriate percentage | CO2 emissions | Appropriate percentage | |||
| (g/km) | Petrol % | Diesel % | (g/km) | Petrol % | Diesel % | |
| 0-50 | 9 | 12 | 145-149 | 28 | 31 | |
| 51-75 | 13 | 16 | 150-154 | 29 | 32 | |
| 76-94 | 17 | 20 | 155-159 | 30 | 33 | |
| 95-99 | 18 | 21 | 160-164 | 31 | 34 | |
| 100-104 | 19 | 22 | 165-169 | 32 | 35 | |
| 105-109 | 20 | 23 | 170-174 | 33 | 36 | |
| 110-114 | 21 | 24 | 175-179 | 34 | 37 | |
| 115-119 | 22 | 25 | 180-184 | 35 | 37 | |
| 120-124 | 23 | 26 | 185-189 | 36 | 37 | |
| 125-129 | 24 | 27 | 190 and above | 37 | 37 | |
| 130-134 | 25 | 28 | ||||
| 135-139 | 26 | 29 | ||||
| 140-144 | 27 | 30 | ||||
| To find CO2 emission of your car check Car registration documents or following website | ||||||
| http://carfueldata.direct.gov.uk | ||||||
| FUEL BENEFIT | 2017-18 | 2016-17 | ||||
|---|---|---|---|---|---|---|
| Multiply the CO2% used for the car benefit by | £22,600 | £22,200 | ||||
| Vans – Fixed charge | £3,230 | £3,170 | ||||
| Vans – Fuel benefit (if fuel is provided by the employer for private travel) | £610 | £598 | ||||
The Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011.
The money in the CTF account belongs to the child but can’t be taken out until they are 18.
Parents, family and friends can add money to the account up to a limit of £4,128 in the 2017 to 2018 tax year.
You can’t apply for a new Child Trust Fund because the scheme is now closed. You can apply for a Junior ISA instead.
JUNIOR ISA
You can’t have a Junior ISA as well as a Child Trust Fund. If you want to open a Junior ISA ask the provider to transfer the trust fund into it.
The money in the Junior ISA account belongs to the child. The child can take control of the account when they’re 16 but can’t withdraw until they are 18.
Your child can only have:
- 1 cash Junior ISA
- 1 stocks and shares Junior ISA
Anyone (including child) can pay money into a Junior ISA, but the total amount paid in can’t go over £4,128 in the 2017 to 2018 tax year.
| (Effective from 01 Sept 2018) | ||||||
|---|---|---|---|---|---|---|
Advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly. The rates can be used by employers who reimburse employees for business travel in their company cars or where employees are required to repay the cost of fuel used for private travel. HMRC accepts that there is no taxable profit and no Class 1A National Insurance on reimbursed travel expenses where employers pay a rate per mile for business travel no higher than the published advisory fuel rates. Employees can also use the advisory fuel rates to repay the cost of fuel used for private travel, in which case HMRC will accept there’s no fuel benefit charge. The advisory rates are not binding if the employer can demonstrate that the employees cover the full cost of private fuel by repaying at a lower rate per mile The latest advisory fuel rates become effective on 1 September 2018.Fuel rates are reviewed four times a year with changes taking effect on 1 March, 1 June, 1 September and 1 December. You can use the previous rates for up to 1 month from the date the new rates apply. |
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| Engine Size | Petrol | Lpg | ||||
| 1400cc or less | 12p | 7p | ||||
| 1401cc to 2000cc | 15p | 9p | ||||
| Over 2000cc | 22p | 13p | ||||
| Engine size | Diesel | Amount per mile | ||||
| 1600cc or smaller | 10p | - | ||||
| 1601cc to 2000cc | 12p | - | ||||
| 1601cc to 2000cc | 12p | - | ||||
| Over 2000cc | 13p | - | ||||
|
Hybrid cars are treated as either petrol or diesel cars for this purpose.Advisory Electricity Rate.HMRC now accepts that if you pay up to 4p per mile when reimbursing your employees for business travel in a fully electric company car, there is no profit. While electricity is not considered a fuel for tax and NICs purposes, the Advisory Electricity Rate will be published quarterly alongside the other advisory fuel rates. |
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| 2016-17 | ||||||
|---|---|---|---|---|---|---|
| Share incentive plans | ||||||
| Employer contributions | £3,600 | |||||
| Employer matching | (2:1) | |||||
| Employee | £1,800 | |||||
| Enterprise management incentive option value | £250,000 | |||||
| Approved share option schemes option value | £30,000 | |||||
| Savings-related share options per month (up to) | £500 | |||||
| 2017-18 | ||||||
|---|---|---|---|---|---|---|
| Maximum Investment Component | £20,000 | |||||
| Investment can be split in to Cash ISA, Stocks & Shares ISA , innovative finance ISA and Lifetime ISA up to the total limit specified. | ||||||
| Example: You could save £11,000 in a cash ISA, £2,000 in a stocks and shares ISA, £3,000 in an innovative finance ISA and £4,000 in a Lifetime ISA in one tax year. | ||||||
| Description | 2017-18 | 2016-17 | ||||
|---|---|---|---|---|---|---|
| Standard threshold | £325,000 | £325,000 | ||||
| Combined threshold maximum for married couples and civil partners | £650,000 | £650,000 | ||||
| Rate of tax on balance: | ||||||
| Chargeable lifetime transfers | 20% | 20% | ||||
| Transfers on, or within 7 years of, death | 40% | 40% | ||||
| 100 % Relief : | Business Assets, Unlisted/AIM company shares, Certain farmlands/buildings | |||||
| 50 % Relief : | Certain other business assets and Certain farmlands/buildings | |||||
| Reduced Tax charge on gifts within 7 years of death | ||||||
| Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 | |
| Tax reduced by | 0% | 20% | 40% | 60% | 80% | |
| Main exemptions | ||||||
| 1. Most transfers between spouses and civil partners. | ||||||
| 2. The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year. | ||||||
| 3. Gifts of up to but not exceeding £250 p.a. to any number of persons. | ||||||
| 4. Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent, or up to £1,000 by any other person. | ||||||
| 5. Gifts made out of income that form part of normal expenditure and do not reduce the standard of living. | ||||||
| 6. Gifts to charities, whether made during lifetime or on death. | ||||||
| 7. If you give away your home to your children (including adopted, foster or stepchildren) or grandchildren, your threshold will increase to £425,000. | ||||||
| Plant and Machinery and others | ||||||
|---|---|---|---|---|---|---|
| Energy saving and environmentally beneficial equipment, Zero and low CO2 emission (up to 95g/km) cars, new and unused zero emission goods vehicles, natural gas/hydrogen refuelling equipment: first year allowance (FYA) | 100% | |||||
| Annual investment allowance (AIA) – on first £200,000 of investment (excludes cars and other expenditure already qualifying for 100% FYA) | 100% | |||||
| Writing down allowance on expenditure not qualifying for AIA or FYA: | ||||||
| Long-life assets, integral features of buildings, cars over 130g/km | 8% | |||||
| Other plant and machinery, cars between 75g/km to 130g/km | 18% | |||||
| Motor cars : Expenditure on or after 01 April 2015 | ||||||
| CO2 emissions of g/km : | 75 or less | 75-130 | 131 or more | |||
| Capital allowance : | 100% | 18% | 8% | |||
| Due Dates | ||||||
|---|---|---|---|---|---|---|
| Income Tax (including Class 4 NIC) | ||||||
| 31 July 2017 | 2016/17 second payment on account | |||||
| 31 January 2018 | 2016/17 balancing payment, and 2017/18 first payment on account | |||||
| 31 July 2018 | 2017/18 second payment on account | |||||
| 31 January 2019 | 2017/18 balancing payment, and 2018/19 first payment on account | |||||
| Class 1A NICs | ||||||
| 19 July 2017 | 2016/17 payment due | |||||
| Capital Gains Tax | ||||||
| 31 January 2018 | 2016/17 Capital Gains Tax | |||||
| 31 January 2019 | 2017/18 Capital Gains Tax | |||||
| Corporation Tax | ||||||
| 9 months and one day after the end of the accounting period (or by quarterly instalments if large company) |
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| Inheritance Tax | ||||||
| 6 months after the end of the month of death. | ||||||
| For chargeable lifetime transfers, due date is six months after the end of the month in which the transfer was made. | ||||||
| Latest Filing/Issuing Deadlines – 2016/17 PAYE Returns | ||||||
|---|---|---|---|---|---|---|
| 31-May-17 | Issue P60s to employees | |||||
| 6-Jul-17 | P9D, P11D and P11Db – also issue copies to employees | |||||
| 2016 Self Assessment Tax Return | ||||||
| 31 October 2017 | Last filing date – SATR Paper Version | |||||
| 30 December 2017 | SATR Online if outstanding tax (subject to cap) to be included in 2018/19 PAYE code | |||||
| 31 January 2018 | Last filing date – SATR Online | |||||
| Working Tax Credit for those without Children (£) | ||||||
|---|---|---|---|---|---|---|
| Annual income (£) | Single person aged 25 or over working 30 or more hours a week | Couple (working adults aged 25 or over ) working 30 or more hours a week | ||||
| *11,700 | 795 | 2,615 | ||||
| 12,000 | 485 | 2,495 | ||||
| 13,000 | 75 | 2,085 | ||||
| 14,000 | - | 1,675 | ||||
| 15,000 | - | 1,265 | ||||
| 16,000 | - | 855 | ||||
| 17,000 | - | 445 | ||||
| 18,000 | - | 35 | ||||
| 19,000 + | - | - | ||||
| * Someone aged 25 or over, working 30 hours a week on | ||||||
| National Living Wage (Based on April 2017 rates) | ||||||
| would earn £11,700 a year. | ||||||
| If you are in work and responsible for at least one child | ||||||
|---|---|---|---|---|---|---|
| Working and Child Tax Credit (£) | ||||||
| Annual income (£) | One child / Young person | Two children / Young person | Three children / Young person | |||
| 6,240 | 7,300 | 10,080 | 12,865 | |||
| 7,300 | 10,080 | 12,865 | ||||
| 11,700 | 5,945 | 8,725 | 11,510 | |||
| 15,000 | 4,595 | 7,375 | 10,155 | |||
| 20,000 | 2,545 | 5,325 | 8,105 | |||
| 25,000 | 495 | 3,275 | 6,055 | |||
| 30,000 | - | 1,225 | 4,005 | |||
| 35,000 | - | - | 1,955 | |||
| 40000+ | - | - | - | |||
*1 – Those with incomes of £6,240 a year are assumed to work part-time working between 16 and 29 hours a week).
*2 – In families with an income of £11,700 a year or more, at least one adult is assumed to be working 30 hours or more a week (consistent with a minimum adult living wage of £7.50 (based on April 2016 rates) for those aged 25 and over).
Note: If you have a child with a disability you may be entitled to more.
The maximum amounts may be higher if you are entitled to the disability or childcare elements of Working Tax Credit.
| If you do not qualify for working tax credit | ||||||
|---|---|---|---|---|---|---|
| Child Tax Credit Only (£) | ||||||
| Annual income (£) | One child | Two children | Three children | |||
| No income | 3,330 | 6,110 | 8,890 | |||
| 5,000 | 3,330 | 6,110 | 8,890 | |||
| 8,000 | 3,330 | 6,110 | 8,890 | |||
| 10,000 | 3,330 | 6,110 | 8,890 | |||
| 15,000 | 3,330 | 6,110 | 8,890 | |||
| 20,000 | 1,730 | 4,515 | 7,295 | |||
| 25,000 | - | 2,465 | 5,245 | |||
| 30,000 | - | 415 | 3,195 | |||
| 35,000 | - | - | 1,145 | |||
| 40,000 | - | - | - | |||
| Who is eligible for Jobseeker’s Allowance? | ||||||
|---|---|---|---|---|---|---|
| To claim Jobseeker’s Allowance you need to be actively looking for work and: # over 18 but below State Pension age # unemployed or working fewer than 16 hours per week # living in England, Scotland or Wales Under 18s: you can’t get Jobseeker’s Allowance, except in special circumstances. Under 20s: you can’t get Jobseeker’s Allowance while you are in education and your parents are receiving Child Benefit for you. Full time students: you can’t usually get Jobseeker’s Allowance until your course has officially finished – check the date with your college or university. |
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| How much will you get paid? | ||||||
| Depending on your circumstances you may be entitled to the following amounts: | ||||||
| Age | Maximum weekly amount | |||||
| 18 to 24 | up to £57.90 | |||||
| 25 or over | up to £73.10 | |||||
| Couples (both aged over 18) | up to £114.85 | |||||
| There is no financial limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual’s UK relevant earnings or £3,600. | ||||||
|---|---|---|---|---|---|---|
| If total pension input exceeds the annual allowance of £40,000, there may be a tax charge on the excess. | ||||||
| Maximum age for tax relief | 74 | |||||
| Minimum age for taking benefits | 55 | |||||
| Lifetime allowance charge – lump sum paid | 55% | |||||
| Lifetime allowance charge – monies retained | 25% | |||||
| on cumulative benefits exceeding | £1,000,000* | |||||
| Maximum tax-free lump sum | 25% | |||||
| *Subject to transitional protection for excess amount. | ||||||
| Transfers of property are subject to stamp duty land tax at the following rates: | ||||||
|---|---|---|---|---|---|---|
| Residential | Standard Rate (Single) | Buy-to-let (Second home rate) | ||||
| Value up to to £125,000 | 0% | 3% | ||||
| Over £125,000* to £250,000 | 2% | 5% | ||||
| Over £250,000 to £925,000 | 5% | 8% | ||||
| Over £925,000 to £1,500,000 | 10% | 13% | ||||
| Over £1,500,000** | 12% | 15% | ||||
| The calculation of SDLT on purchase of non-residential property was changed from the whole transaction value to the same basis as residential (consideration falling within each band). | ||||||
| Commercial | Tax Rate | |||||
| Value up to £150,000 | 0% | |||||
| Over £150,000 to £250,000 | 2% | |||||
| Over £250,000 | 5% | |||||
| The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is generally payable at 0.5 per cent. If you buy stocks and shares for £1,000 or less you don’t normally have to pay any stamp duty. | ||||||
| New Leases | ||||||
| Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV), with a single rate of 1% on residential NPV’s over £125,000 Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV) at 1% on non-residential NPV’s over £150,000 and this rises to 2% on leases with an NPV greater than £5m. VAT is excluded from treatment as consideration provided the landlord has not opted to charge VAT by the time the lease is granted. |
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| Lease premiums | ||||||
| Duty on premiums is the same as for transfers of land . | ||||||
| A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows: | ||||||
|---|---|---|---|---|---|---|
| Cars and vans: | ||||||
| on the first 10,000 miles in the tax year | 45p per mile | |||||
| on each additional mile above this | 25p per mile | |||||
| Motorcycles | 24p per mile | |||||
| Bicycles | 20p per mile | |||||
Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.
Rates of up to 5p per mile, per passenger, are also tax and NICs free when paid for the carriage of fellow employees on the same business trip. This also covers volunteers who drive for hospital car services etc, even though they are not strictly employees.