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Accountants in Medway - Sinden Thackeray Partnership

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Income Tax Rates and Bands

Recent income tax rates and bands are as follows:

2015/16 2016/17 2017/18
Savings rate: 10%, 0% from 2015/16 0 - £5,000 0- £5,000 0- £5,000
Dividend Allowance: 20% NA 0 - £5,000 0 - £5,000
Basic rate: 20% 0 - £31,785 0 - £32,000 0 - £33,500
Higher rate: 40% £31,786 - £150,000 £32,001 - £150,000 £33,501 - £150,000
Additional rate: 45% Over £150,000 Over 150,000 Over 150,000

Autumn 2017 Budget announced the following income tax rates and bands for 2018/19:

2018/19
Savings rate : 0% 0 - £5,000
Dividend Allowance: 20% £2,000
Basic rate: 20% 0 - £34,500
Higher rate: 40% £34,501 - £150,000
Additional rate: 45% Over £150,000

When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £45,000 in 2017/18. This is expected to rise to £46,350 for 2018/19. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.

For 2017/18 the basic rate band on non-savings income for Scottish Taxpayers is set at £43,000. For all other income types it remains in line with the main UK band of £45,000.

 


Christopher Kember FMAAT is licensed and regulated by AAT under licence number 7213. AAT is recognised by HM Treasury to supervise compliance with the Money Laundering Regulations and Sinden Thackeray Partnership is supervised by AAT in this respect.