Income Tax & Personal Allowances

From 5th April 2017 the following apply:
 

Personal Tax Free Allowance                                                                £11,500

Basic Rate Band - 20%                                                                           £33,500

Higher Rate - 40% on income over**                                                    £45,000

Additional rate - 45% on income over                                                £150,000

Transferable Tax Allowance (Marriage Allowance)                               £1,100
 

**Your personal allowance goes down by £1 for every £2 that your adjusted net income is over £100,000

National Insurance Employee & Employer Contributions

National insurance employee and employer contributions are being brought into line with each other from April 2017.  Both employees and employers will start paying National Insurance on weekly earnings above £157.                                

National Living Wage & National Minimum Wage Rates

The new rates applicable from April 2017 are:

Apprentices - £3.50 per hour

16 to 17 year olds - £4.05 per hour

18 to 20 year olds - £5.60 per hour

21 to 24 year olds - £7.05 per hour

over 25 year olds - £7.50 per hour
 

Self-Employed National Insurance Class 2

Class 2 NIC's will be abolished from April 2018, self-employed contributions will continue to be collected through Class 3 (Voluntary contributions) and Class 4 (NIC on profits).

All self-employed women will continue to be able to access the standard rate of Maternity Allowance.

Self-employed people with profits below the Small Profits Limit will be able to access Contributory Employment and Support Allowance through Class 3 NIC's.  

There will be provision to support self-employed individuals with low profits during this transition.