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Happy New Tax Year! Here Are Your New Personal Tax Rates For 2017-18
Edward Kirkby posted this on Apr 6th, 2017
Today is the start of the 2017-18 tax year.
Whilst most of the world quite sensibly uses the calendar year, the United Kingdom tax year runs from 6 April to 5 April. This is all to do with Pope Gregory Xiii way back in 1582 and the use of the ‘Julian’ calendar, but we won’t bore you with that.
The new tax rates for 2017-18 are as follows:
Income Tax bands (different if you live in Scotland):
| Band | Taxable income | Tax rate |
| Personal Allowance | Up to £11,500 | 0% |
| Basic rate | £11,501 to £45,000 | 20% |
| Higher rate | £45,001 to £150,000 | 40% |
| Additional rate | over £150,000 | 45% |
Savings Rate
| Income Tax band | Tax-free savings income |
| Basic rate | £1,000 |
| Higher rate | £500 |
| Additional rate | £0 |
Dividend Tax Rates
| Tax band | Tax rate on dividends over £5,000 |
| Basic rate | 7.50% |
| Higher rate | 32.50% |
| Additional rate | 38.10% |
Employee National Insurance Rates
| Your pay | Class 1 NI rate |
| £157 to £866 a week (£680 to £3,750 a month) | 12% |
| Over £866 a week (£3,750 a month) | 2% |
Self-Employed National Insurance Rates
| Class | Rate for tax year 2017 to 2018 |
| Class 2 | £2.85 a week |
| Class 4 | 9% on profits between £8,164 and £45,000 |
| 2% on profits over £45,000 |
Remember that Class 2 NI is no longer paid by Direct Debit
Please get in touch if you are unsure about any of the rates or what tax you should be paying.
