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Rate of Income Tax 2017-18

Rate of Income Tax 2017-18
Income tax bands of taxable income (£ per year)
Tax year 2016-17 Tax year 2017-18
Basic rate £0-32,000 £0-33,500
Higher rate £32,001-150,000 £33,500-150,000
Additional rate Over £150,000 Over £150,000
Income tax rates - 2016-17
Tax year 2016-17
Main rates

Basic rate 20%
Higher rate 40%
Additional rate 45%
Dividend rates

Dividend ordinary rate - for dividends otherwise taxable at the basic rate 7.5%
Dividend upper rate - for dividends otherwise taxable at the higher rate 32.5%
Dividend additional rate - for dividends otherwise taxable at the additional rate 38.1%
Income tax rates - 2017-18
Main rates

Basic rate 20%
Higher rate 40%
Additional rate 45%
Savings rates

Starting rate for savings 0%
Savings basic rate 20%
Savings higher rate 40%
Savings additional rate 45%
Dividend rates

Dividend ordinary rate - for dividends otherwise taxable at the basic rate 7.5%
Dividend upper rate - for dividends otherwise taxable at the higher rate 32.5%
Dividend additional rate - for dividends otherwise taxable at the additional rate 38.1%
Default rates

Default basic rate 20%
Default higher rate 40%
Default additional rate 45%
Starting rates for savings income
Tax year 2016-17 Tax year 2017-18
Starting rate for savings 0% 0%
Starting rate limit for savings £5,000 £5,000
Special rates for trustees’ income
Tax year 2016-17 Tax year 2017-18
Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trustees Up to 20%, depends on the type of income Up to 20%, depends on the type of income
Trust rate 45% 45%
Dividend trust rate 38.1% 38.1%
Income tax allowances
Tax year 2016-17 Tax year 2017-18
Personal allowance
Personal allowance
£11,000 £11,500
Income limit for personal allowance £100,000 £100,000
Income limit for Married couple’s allowance
£27,700 £28,000
Marriage allowance
Marriage allowance
£1,100 £1,150
Married couple’s allowance for those born before 6 April 1935
Maximum amount of married couple’s allowance
£8,355 £8,445
Minimum amount of married couple’s allowance
£3,220 £3,260
Blind person’s allowance
Blind person’s allowance £2,290 £2,320
Dividend allowance
Dividend allowance
£5,000 £5,000
Personal savings allowance
Personal savings allowance for basic rate taxpayers
£1,000 £1,000
Personal savings allowance for higher rate taxpayers
£500 £500
National Insurance Contributions (NIC)
Class 1 NICs: Employee and employer rates and thresholds (£ per week)
Tax year 2016-17 Tax year 2017-18
Weekly Lower Earnings Limit (LEL)
112 113
Weekly Primary Threshold (PT)
155 157
Weekly Secondary Threshold (ST)
156 157
Upper Earnings Limit (UEL)
827 866
Upper Secondary Threshold for under 21s
827 866
Apprentice Upper Secondary Threshold (AUST) for under 25s
827 866
Employment Allowance (per employer) 3,000 per year 3,000 per year
Employee’s (primary) Class 1 contribution rates Tax year 2016-17 Tax year 2017-18
Earnings band
NIC rate (per cent) NIC rate (per cent)
Below LEL 0 0
LEL - PT
0 0
PT- UEL 12 12
Above UEL 2 2
Married woman’s reduced rate for (primary) Class 1 contribution rates Tax year 2016-17 Tax year 2017-18
Weekly earnings from between the PT and UEL 5.85 5.85
Weekly earnings from above UEL 2 2
Employer’s (secondary) Class 1 contribution rates Tax year 2016-17 Tax year 2017-18
Earnings band

Below ST 0 0
Above ST 13.8 13.8
Employer’s (secondary) Class 1 contribution rates for employees under 21 Tax year 2016-17 Tax year 2017-18
Earnings band

Below UST 0 0
Above UST 13.8 13.8
Employer’s (secondary) Class 1 contribution rates for Apprentices under 25 Tax year 2016-17 Tax year 2017-18
Earnings band

Below AUST 0 0
Above AUST 13.8 13.8
Class 2 NICs: Self-employed rates and thresholds (£ per week)
Tax year 2016-17 Tax year 2017-18
Small Profits Threshold (SPT)
5,965 per year 6,025 per year
Class 2 contribution rates
Tax year 2016-17 Tax year 2017-18
Annual Profits (£ a year)
£ per week £ per week
Below SPT 0 0
Above SPT
2.80 2.85
Special Class 2 rate for share fishermen 3.45 3.50
Special Class 2 rate for volunteer development workers 5.60 5.65
Class 3 NICs: Other rates and thresholds (£ per week)
Tax year 2016-17 Tax year 2017-18
Voluntary contributions
14.10 14.25
Class 4 NICs: Self-employed rates and thresholds (£ per year)
Tax year 2016-17 Tax year 2017-18
Lower Profits Limit (LPL)
8,060 8,164
Upper Profits Limit (UPL)
43,000 45,000
Class 4 contribution rates Tax year 2016-17 Tax year 2017-18
Annual profits band
NIC rate (per cent) NIC rate (per cent)
Below LPL 0 0
LPL to UPL 9 9
Above UPL 2 2
Working and Child tax credits, child benefit and guardians allowance
Working and child tax credits
£ per year (unless stated) Tax year 2016-17 Tax year 2017-18
Working tax credit
Basic element £1,960 £1,960
Couple and lone parent element £2,010 £2,010
30 hour element £810 £810
Disabled worker element £2,970 £3,000
Severe disability element £1,275 £1,290
Childcare element of the working tax credit
Maximum eligible cost for one child £175 per week £175 per week
Maximum eligible cost for two or more children £300 per week £300 per week
Percentage of eligible costs covered 70% 70%
Child tax credit
Family element £545 £545
Child element £2,780 £2,780
Disabled child element £3,140 £3,175
Severely disabled child element £1,275 £1,290
Income thresholds and withdrawal rates
Income threshold £6,420 £6,420
Withdrawal rate (per cent) 41% 41%
First threshold for those entitled to child tax credit only £16,105 £16,105
Income rise disregard £2,500 £2,500
Income fall disregard £2,500 £2,500
Child benefit (£ per week)
Tax year 2016-17 Tax year 2017-18
Eldest/only child £20.70 £20.70
Other children £13.70 £13.70
Guardians allowance (£ per week)
Guardians allowance £16.55 £16.70
Tax free savings accounts
Tax year 2016-17 Tax year 2017-18
Individual Savings Account (ISA) subscription limit £15,240 £20,000
Junior ISA subscription limit £4,080 £4,128
Child Trust Fund (CTF) subscription limit £4,080 £4,128
Fuel benefit and van benefit charge
Tax year 2016-17 Tax year 2017-18
Car fuel benefit charge multiplier £22,200 £22,600
Van fuel benefit charge £598 £610
Van benefit charge £3,170 £3,230


06-04-2017
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