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2017/18 tax tables

- 4:19 pm - January 31st, 2017


2017/18 tax tables - in an easy to read format

We've compiled the definitive set of tax tables for 2017/18, with the 2016/17 figures for comparison, in a complete listing of tax changes, rates and thresholds.

1. Personal tax and benefits

1.1 Income tax bands of taxable income (£ per year)

 Tax year 2016-17Tax 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

1.2 Income tax rates - 2016-17

 Tax year 2016-17
Main rates 1  
Basic rate 20%
Higher rate 40%
Additional rate 45%
Dividend rates 2  
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%

1.3 Income tax rates - 2017-18

Main rates 3  
Basic rate 20%
Higher rate 40%
Additional rate 45%
Savings rates 4  
Starting rate for savings 0%
Savings basic rate 20%
Savings higher rate 40%
Savings additional rate 45%
Dividend rates 5  
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 6  
Default basic rate 20%
Default higher rate 40%
Default additional rate 45%

1.4 Starting rates for savings income

 Tax year 2016-17Tax year 2017-18
Starting rate for savings 0% 0%
Starting rate limit for savings £5,000 £5,000

1.5 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%

1.6 Income tax allowances

  Tax year 2016-17 Tax year 2017-18
Personal allowance    
Personal allowance 7 £11,000 £11,500
Income limit for personal allowance £100,000 £100,000
Income limit for Married couple’s allowance 8 £27,700 £28,000
Marriage allowance    
Marriage allowance 9 £1,100 £1,150
Married couple’s allowance for those born before 6 April 1935    
Maximum amount of married couple’s allowance 10 £8,355 £8,445
Minimum amount of married couple’s allowance 10 £3,220 £3,260
Blind person’s allowance    
Blind person’s allowance £2,290 £2,320
Dividend allowance    
Dividend allowance 11 £5,000 £5,000
Personal savings allowance    
Personal savings allowance for basic rate taxpayers 12 £1,000 £1,000
Personal savings allowance for higher rate taxpayers 12 £500 £500

2. National Insurance Contributions (NIC)

2.1 Class 1 NICs: Employee and employer rates and thresholds (£ per week)

  Tax year 2016-17 Tax year 2017-18
Weekly Lower Earnings Limit (LEL) 13 112 113
Weekly Primary Threshold (PT) 13 155 157
Weekly Secondary Threshold (ST) 14 156 157
Upper Earnings Limit (UEL) 15 827 866
Upper Secondary Threshold for under 21s 15 827 866
Apprentice Upper Secondary Threshold (AUST) for under 25s 15 827 866
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 16 NIC rate (per cent) NIC rate (per cent)
Below LEL 0 0
LEL - PT 17 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 18    
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 19    
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 20    
Below AUST 0 0
Above AUST 13.8 13.8

2.2 Class 2 NICs: Self-employed rates and thresholds (£ per week)

  Tax year 2016-17 Tax year 2017-18
Small Profits Threshold (SPT) 13 5,965 per year 6,025 per year
Class 2 contribution rates 13 Tax year 2016-17 Tax year 2017-18
Annual Profits (£ a year) 21 £ per week £ per week
Below SPT 0 0
Above SPT 22 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

2.3 Class 3 NICs: Other rates and thresholds (£ per week)

  Tax year 2016-17 Tax year 2017-18
Voluntary contributions 13 23 14.10 14.25

2.4 Class 4 NICs: Self-employed rates and thresholds (£ per year)

  Tax year 2016-17 Tax year 2017-18
Lower Profits Limit (LPL) 13 8,060 8,164
Upper Profits Limit (UPL) 15 43,000 45,000
Class 4 contribution rates Tax year 2016-17 Tax year 2017-18
Annual profits band 24 NIC rate (per cent) NIC rate (per cent)
Below LPL 0 0
LPL to UPL 9 9
Above UPL 2 2

3. Working and Child tax credits, child benefit and guardians allowance

3.1 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

3.2 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

4. 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

5. 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

Notes

  1. Apply to non-dividend income, including income from savings, employment, property or pensions. From 2017-18, the main rates will be separated into the main rates, the savings rates and the default rates

  2. Apply to dividend income received above the £5,000 tax-free Dividend Allowance, introduced in April 2016 to replace the Dividend Tax Credit

  3. Apply to non-savings, non-dividend income, including income from employment, property or pensions not subject to the Scottish Rate of income tax

  4. Apply to savings income

  5. Apply to dividend income received above the £5,000 tax-free Dividend Allowance, introduced in April 2016 to replace the previous Dividend Tax Credit

  6. Apply to non-savings and non-dividend income of any taxpayer that is not subject to either the Main rates or the Scottish Rates of income tax

  7. The Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth

  8. This age-related allowance is reduced by £1 for every £2 of income over this limit

  9. This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to income tax; or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher or additional rates

  10. The relief for this allowance is given at 10%. 2

  11. From April 2016, the new Dividend Allowance means that individuals will not have to pay tax on the first £5,000 of dividend income they receive

  12. From April 2016, the new Personal Savings Allowance means that basic rate taxpayers will not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers will not have tax to pay on their first £500 of savings income. 2

  13. Uprated by CPI 2 3 4 5 6

  14. Autumn Statement 2016 announced that the Secondary Threshold would be aligned with the Primary Threshold. From April 2018 onwards, it will be uprated in line with CPI

  15. These thresholds are uprated in line with the Higher Rate Threshold to maintain alignment between the Upper Earnings Limit and Higher Rate Threshold 2 3 4

  16. The limits are defined as LEL - Lower Earnings Limit; PT - Primary Threshold; and UEL - Upper Earnings Limit

  17. No National Insurance contributions (NICs) are actually payable but a notional Class 1 NIC is deemed to have been paid in respect of earnings between the LEL and PT to protect contributory benefit entitlement.

  18. The limit is defined as ST – Secondary Threshold

  19. The limit is defined as UST – Upper Secondary Threshold

  20. The limit is defined as AUST – Apprentice Upper Secondary Threshold

  21. The Limit is defined as SPT – Small Profits Threshold

  22. Class 2 NICs are liable to be paid by all self-employed persons with profits above the Small Profits Threshold (SPT). The self-employed may choose to pay Class 2 if their profits are below the SPT

  23. Class 3 NICs can be paid by contributors to make the year a qualifying year for the basic State Pension (new State Pension from 6 April 2016) and Bereavement Benefit purposes

  24. These limits are defined as LPL – Lower Profits Limit; and UPL – Upper Profits Limit