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Happy New Tax Year! Here Are Your New Personal Tax Rates For 2017-18

 Edward Kirkby posted this on Apr 6th, 2017

Today is the start of the 2017-18 tax year.

Whilst most of the world quite sensibly uses the calendar year, the United Kingdom tax year runs from 6 April to 5 April. This is all to do with Pope Gregory Xiii way back in 1582 and the use of the ‘Julian’ calendar, but we won’t bore you with that.

The new tax rates for 2017-18 are as follows:

 

Income Tax bands (different if you live in Scotland):

Band Taxable income Tax rate
Personal Allowance Up to £11,500 0%
Basic rate £11,501 to £45,000 20%
Higher rate £45,001 to £150,000 40%
Additional rate over £150,000 45%

 

Savings Rate

Income Tax band Tax-free savings income
Basic rate £1,000
Higher rate £500
Additional rate £0

 

Dividend Tax Rates

Tax band Tax rate on dividends over £5,000
Basic rate 7.50%
Higher rate 32.50%
Additional rate 38.10%

 

Employee National Insurance Rates

Your pay Class 1 NI rate
£157 to £866 a week (£680 to £3,750 a month) 12%
Over £866 a week (£3,750 a month) 2%

 

Self-Employed National Insurance Rates

Class Rate for tax year 2017 to 2018
Class 2 £2.85 a week
Class 4 9% on profits between £8,164 and £45,000
2% on profits over £45,000

 

Remember that Class 2 NI is no longer paid by Direct Debit

 

Please get in touch if you are unsure about any of the rates or what tax you should be paying.

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