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Accountants in Medway - Sinden Thackeray Partnership

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Income Tax Rates and Bands

Income tax rates are to remain the same to 5 April 2016, with the exception of the savings rate. This will be cut to 0% from 6 April 2015. However, the savings rate only applies if individual's net non-savings taxable income does not exceed the savings rate limit.

The income tax rates and bands have been announced as:

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

When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £43,000 in 2016/17 and £45,000 in 2017/18. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.

From 2017/18 the basic rate band on non-savings income for Scottish Taxpayers will be set at £43,000. For all other income types it will remain 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.