1. Personal tax and benefits
1.1 Income tax bands of taxable income (£ per year)
| Tax year 2016-17 | Tax 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
| Main rates 1 | |
| Tax year 2016-17 | |
|---|---|
| Basic rate | 20% |
| Higher rate | 40% |
| Additional rate | 45% |
| Dividend rates 2 | |
| Tax year 2016-17 | |
| 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 | |
| Tax year 2016-17 | |
|---|---|
| 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/td> | 45% |
1.4 Starting rates for savings income
| Tax year 2016-17 | Tax 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 | |
|---|---|---|
| 1.5 Special rates for trustees'income | 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 | |
|---|---|---|
| 1.5 Special rates for trustees'income | Up to 20%, depends on the type of income | Up to 20%, depends on the type of income |
| 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 ratess | 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 | 2.8 | 2.85 |
| Special Class 2 rate for share fishermen | 3.45 | 3.5 |
| Special Class 2 rate for volunteer development workers | 5.6 | 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 | 14.1 | 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) 1 | 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 |