Tax Facts

We have provided some useful information below to give you a quick glance of allowances and tax rates. Please contact us if you require guidance on any taxation.

Personal Allowances

Allowance 2016/17 2017/18  
Basic £11,000 £11,500  
People born between 6th April 1938 – 5th April 1948 £11,000 £11,500  
People born before 6th April 1938 £11,000 £11,500  
Married Couples Allowance ( if born before 6th April 1935) £8,355 £8,445  
Blind Person’s Allowance £2,290 £2,320  
Marriage Allowance* £1,100 £1,150  

* An annual transferable allowance between spouses of £1,060 was introduced for 2015/16 tax year. This year, 2017/18 the transferable allowance increases to £1,150. A spouse or civil partner who is not liable to income tax above the basic rate may transfer up to £1,150 of their unused personal allowance to their spouse/civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate. This measure will only be of benefit to those in the lower income bracket.

 

Tax Brackets

Tax Rate 2016/17 2017/18  
Basic rate 20% £0 – £32,000 £0 – £33,500  
Higher Rate 40% £32,001 – £150,000 £32,001 – £150,000  
Additional Rate 45% £150,001+ £150,001+  
NOTE: These rates are applied after your tax free allowance has been deducted from your gross wage.

National Insurance Bands

Description 2016/17 2017/18  
Weekly Lower earnings limit, primary Class 1 £112 £113  
Weekly Upper earnings limit, primary Class 1 £827 £866  
Weekly Primary threshold £155 £157  
Weekly Secondary threshold £156 £157  
Weekly Upper Secondary Threshold for U21s £827 £866  
Apprentice Upper Secondary Threshold for U25s £827 £866