Bands of taxable income and corresponding tax rates
|
2015-16 |
2016-17 |
|
% of income/£ per year |
|
| Basic rate |
20% |
20% |
| Higher rate |
40% |
40% |
| Additional rate |
45% |
45% |
| Starting rate for savings income |
0% |
0% |
| Dividend ordinary rate – for dividends otherwise taxable at the basic rate (effective rate with tax credit) |
10% (0%) |
7.5% |
| Dividend upper rate – for dividends otherwise taxable at the higher rate (effective rate with tax credit) |
32.5% (25%) |
32.5% |
| Dividend additional rate – for dividends otherwise taxable at the additional rate (effective rate with tax credit) |
37.5% (30.6%) |
38.1% |
| Starting rate limit (savings income) |
£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
2.1 Income tax allowances 2015-16
|
2015-16 |
|
% of income/£ per year |
| Personal allowance: |
|
| Born after 5 April 1938 |
£10,600 |
| Born before 5 April 1938 |
£10,660 |
| Income limit for personal allowance |
£100,000 |
| Income limit for personal allowances (born before 6 April 1938) |
£27,700 |
| Marriage allowance: |
|
| Marriage allowance |
£1,060 |
| Married couple’s allowance for those born before 6 April 1935: |
|
| Maximum amount of married couple’s allowance |
£8,355 |
| Minimum amount of married couple’s allowance |
£3,220 |
| Blind person’s allowance: |
|
| Blind person’s allowance |
£2,290 |
2.2 Income tax allowances 2016-17
|
2016-17 |
|
% of income/£ per year |
| Personal allowance: |
|
| Personal Allowance |
£11,000 |
| Income limit for personal allowance |
£100,000 |
| Income limit for married couple’s allowance |
£27,700 |
| Marriage allowance: |
|
| Marriage allowance |
£1,100 |
| Married couple’s allowance for those born before 6 April 1935: |
|
| Maximum amount of married couple’s allowance |
£8,355 |
| Minimum amount of married couple’s allowance |
£3,220 |
| Blind person’s allowance: |
|
| Blind person’s allowance |
£2,290 |
| Dividend allowance: |
|
| Dividend allowance |
£5,000 |
| Personal savings allowance: |
|
| Personal savings allowance for basic rate taxpayers |
£1,000 |
| Personal savings allowance for higher rate taxpayers |
£500 |
3.National Insurance contribution thresholds
|
2015-16 |
2016-17 |
|
£ per week |
£ per week |
| Weekly Lower Earnings Limit (LEL) |
112 |
112 |
| Weekly Primary Threshold (PT) |
155 |
155 |
| Weekly Secondary Threshold (ST) |
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) |
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 25s |
– |
827 |
4.Class 1 National Insurance contribution rates 2016-17
| Employee (Primary) |
|
| Earnings (£ a week) |
NIC rate (%) |
| Below £112 (LEL) |
0 |
| £112-155 (PT) |
0 |
| £155-827 (UEL) |
12 |
| Above £827 |
2 |
| Employer (Secondary) |
|
| Earnings (£ a week) |
NIC rate (%) |
| Below £156 (ST) |
0 |
| Above £156 (ST) |
13.8 |
5.Self-employed National Insurance contribution rates 2016-17
| Annual Profits (£ a year) |
Class 2 (£ a week) |
Class 4 (%) |
| Below £5,965 (SPT) |
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
|
2015-16 |
2016-17 |
| Married Women’s reduced rate (%) |
5.85% |
5.85% |
| Special Class 2 rate for share fishermen |
£3.45 per week |
£3.45 per week |
| Special Class 2 rate for volunteer development workers |
£5.60 per week |
£5.60 per week |
| Class 3 rate |
£14.10 per week |
£14.10 per week |
7.Working and Child Tax Credit rates and thresholds
7.1 Working Tax Credit
|
2015-16 |
2016-17 |
Change |
|
£ 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 |
7.2 Child Tax Credit
|
2015-16 |
2016-17 |
Change |
|
£ 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 |
7.3 Income thresholds and withdrawal rates
|
2015-16 |
2016-17 |
Change |
|
£ 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
|
2015-16 |
2016-17 |
Change |
|
£ 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
|
2015-16 |
2016-17 |
|
£ 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
|
2015-16 |
2016-17 |
| Car fuel benefit charge multiplier |
22,100 |
22,200 |
| Van fuel benefit charge |
594 |
598 |
11.Van benefit charge
|
2015-16 |
2016-17 |
| Van benefit charge |
3,150 |
3,170 |
Source: https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2016-17/tax-and-tax-credit-rates-and-thresholds-for-2016-17
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