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tax tables for 2016/17

- 4:19 pm - March 17th, 2016


Tax rates and thresholds for 2016/17: get ready for the new tax year

tax_m.jpgIn a couple of earlier articles we covered changes to salary and dividend rules for 2016/17, which take effect in April, and we've also outlined some of the other key tax changes following the autumn statement.

To make sure you have all the information you need as you go into the new tax year, here's our tax tables for 2016/17, which include rates and thresholds. There are references to HMRC's notes where relevant.

Bands of taxable income and corresponding tax rates

 2015-162016-17
  % of income/£ per year  
Basic rate 20% 20%
Higher rate 40% 40%
Additional rate 45% 45%
Starting rate for savings income1 0% 0%
Dividend ordinary rate – for dividends otherwise taxable at the basic rate (effective rate with tax credit)2 10% (0%) 7.5%
Dividend upper rate – for dividends otherwise taxable at the higher rate (effective rate with tax credit)2 32.5% (25%) 32.5%
Dividend additional rate – for dividends otherwise taxable at the additional rate (effective rate with tax credit)2 37.5% (30.6%) 38.1%
Starting rate limit (savings income)1 £5,000 £5,000
Basic rate band £0-31,785 £0-32,000
Higher rate band £31,786-£150,000 £32,001-150,000
Additional rate band Over £150,000 Over £150,000

2.Income tax allowances

Income tax allowances 2016-17

 2016-17
  % of income/£ per year
Personal allowance:  
Personal Allowance10 £11,000
Income limit for personal allowance10 £100,000
Income limit for married couple’s allowance11 £27,700
Marriage allowance:  
Marriage allowance12, 13 £1,100
Married couple’s allowance for those born before 6 April 1935:  
Maximum amount of married couple’s allowance14, 15, 16 £8,355
Minimum amount of married couple’s allowance14, 15, 16, 17 £3,220
Blind person’s allowance:  
Blind person’s allowance16 £2,290
Dividend allowance:  
Dividend allowance18 £5,000
Personal savings allowance:  
Personal savings allowance for basic rate taxpayers19 £1,000
Personal savings allowance for higher rate taxpayers19 £500

3. National Insurance contribution thresholds

 2015-162016-17
  £ per week £ per week
Weekly Lower Earnings Limit (LEL)20 112 112
Weekly Primary Threshold (PT)20 155 155
Weekly Secondary Threshold (ST)21 156 156
Upper Earnings Limit (UEL) 815 827
Upper Profits Limit (UPL) 42,385 per year 43,000 per year
Upper Secondary Threshold for U21’s 815 827
Small Profits Threshold (SPT)2022 5,965 per year 5,965 per year
Lower Profits Limit (LPL) 8,060 per year 8,060 per year
Employment Allowance 2,000 (per year, per employer) 3,000 (per year, per employer)
Apprentice Upper Secondary Threshold (AUST) for under 25s23 - 827

4.Class 1 National Insurance contribution rates 2016-17

Employee (Primary) 
Earnings (£ a week)24 NIC rate (%)
Below £112 (LEL) 0
£112-155 (PT)25 0
£155-827 (UEL) 12
Above £827 2
Employer (Secondary) 
Earnings (£ a week)24 NIC rate (%)
Below £156 (ST) 0
Above £156 (ST) 13.8

5.Self-employed National Insurance contribution rates 2016-17

Annual Profits (£ a year)26Class 2 (£ a week)27Class 4 (%)
Below £5,965 (SPT)28 0.00 0
£5,965 to £8,060 (LPL) 2.80 0
£8,060 to £43,000 (UPL) 2.80 9
Above £43,000 2.80 2

6.Other NICs rates

 2015-162016-17
Married Women’s reduced rate (%)29 5.85% 5.85%
Special Class 2 rate for share fishermen30 £3.45 per week £3.45 per week
Special Class 2 rate for volunteer development workers30 £5.60 per week £5.60 per week
Class 3 rate30, 31 £14.10 per week £14.10 per week

7.Working and Child Tax Credit rates and thresholds

7.1Working Tax Credit

 2015-162016-17Change
  £ a year £ a year  
Basic element 1,960 1,960 0
Couple and lone parent element 2,010 2,010 0
30 hour element 810 810 0
Disabled worker element 2,970 2,970 0
Severe disability element 1,275 1,275 0
Childcare element      
maximum eligible cost for one child £175 per week £175 per week 0
maximum eligible cost for two or more children £300 per week £300 per week 0
% of eligible costs covered (%) 70% 70% 0

7.2Child Tax Credit

 2015-162016-17Change
  £ a year £ a year  
Family element 545 545 0
Child element 2,780 2,780 0
Disabled child element 3,140 3,140 0
Severely disabled child element 1,275 1,275 0

7.3Income thresholds and withdrawal rates

 2015-162016-17Change
  £ a year £ a year  
Income threshold 6,420 6,420 0
Withdrawal rate (%) 41 41 0
First threshold for those entitled to Child Tax Credit only 16,105 16,105 0
Income rise disregard 5,000 2,500 2,500
Income fall disregard 2,500 2,500 0

8.Child Benefit and Guardian’s Allowance

 2015-162016-17Change
  £ a year £ a year  
Child Benefit      
First Child 20.70 20.70 0
Second and subsequent children 13.70 13.70 0
Guardian’s Allowance 16.55 16.55 0

9.Tax-free Savings Account

 2015-162016-17
  £ a year £ a year
Individual Savings Account (ISA) subscription limit 15,240 15,240
Junior ISA subscription limit 4,080 4,080
Child Trust Fund (CTF) subscription limit 4,080 4,080

10.Fuel benefit charge

 2015-162016-17
Car fuel benefit charge multiplier 22,100 22,200
Van fuel benefit charge 594 598

11.Van benefit charge

 2015-162016-17
Van benefit charge 3,150 3,170