Below you will find some useful information, however, for specific information please do consult independent professional advice. Call us on 0208 659 1350

Income Tax Rates

If you are looking at Income Tax Rates and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances and tax efficient ways to legally minimise your Income Tax.

Rate 2015-16 2016-17 2017-18 2018-19
Starting rate for savings: 0%* £0 – £5,000 £0 – £5,000 £0 – £5,000 £0 – £5,000
Basic rate: 20% £0 – £31,785 £0 – £32,000 £0 – £33,500** £0 – £34,500**
Higher rate: 40% £31,786 – £150,000 £32,001 – £150,000 £33,501** – £150,000 £34,501*** – £150,000
Additional rate: 45% Over £150,000  Over £150,000 Over £150,001 Over £150,001

*Prior to 6th April 2015, this rate was 10% and applied to savings income only.

If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.

** Scottish Taxpayers only the limit is £31,500 for 2017-18

*** Scottish Taxpayers only, see separate table below for income tax rates on earned income non-savings income. (see note 1)

For Scottish Taxpayers, the following proposed rates and bands will apply if the Scottish Budget for 2018-19 is approved by the Scottish Government.

Name of band Rate Band (of earned income)
Starter rate 19% Over £11,850 up to £13,850
Basic rate 20% Over £13,850 up to £24,000
Intermediate rate 21% Over £24,000 up to £44,273
Higher rate 41% Over £44,273 tup to £150,000
Top rate 46% Above £150,000

Note 1. Scottish rates apply to Scottish taxpayers on all non-savings income which includes earned income from employment, self-employment or partnerships and property income, pension income and any other income that is not classed as savings or dividends.

Taxation of dividends

16/17 17/18 18/19
Dividend ordinary rate – for dividends otherwise taxable at the basic rate (effective rate with tax credit) 7.5%* 7.5%** 7.5%***
Dividend upper rate – for dividends otherwise taxable at the higher rate (effective rate with tax credit) 32.5%*  32.5%**  32.5%***
Dividend additional rate – for dividends otherwise taxable at the additional rate (effective rate with tax credit) 38.1%* 38.1%** 38.1%***

* With effect from 6th April 2016, the dividend tax credit has been abolished and replaced with a new £5,000 tax-free Dividend Allowance.

** 5,000 tax-free dividend allowance remains in place

*** The tax-free dividend allowance is reduced to £2,000 from 6 April 2018

Please contact us for further information.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.

Corporation Tax Rates

If you are looking at Corporation Tax Rates or planning your finances, please feel free to contact us. We can discuss your specific circumstances to help you plan tax efficiently.

Rates for financial years starting on 1 April

Small Profits Rate*

2013 2014 2015 2016 2017 2018
20% 20% N/A* N/A N/A N/A

*As of 1st April 2015, all companies (other than Ring Fence Companies) pay Corporation Tax at the main rate of Corporation tax.

Small Profits Rate can be claimed by qualifying companies with profits not exceeding:

2013 2014 2015 2016 2017 2018
£300,000 £300,000 N/A N/A N/A N/A

Marginal Relief Lower Limit

2013 2014 2015 2016 2017 2018
£300,000 £300,000 N/A  N/A N/A N/A

Marginal Relief Upper Limit

2013 2014 2015 2016 2017 2018
£1,500,000 £1,500,000 N/A N/A N/A N/A

Standard Fraction

2013 2014 2015 2016 2017 2018
3/400 1/400 N/A  N/A N/A N/A

Main rate of Corporation Tax

2013 2014 2015 2016 2017 2018
23%* 21%* 20%  20% 19% 19%

Special rate for unit trusts and open-ended investment companies

2013 2014 2015 2016 2017 2018
20% 20% 20%  20% 20% 20%

Main rate of Corporation Tax

The main rate of Corporation Tax applies when profits (including ring fence profits) exceed £1,500,000, or where there is no claim to another rate, or where another rate does not apply. As of 1st April 2015 all companies (other than Ring Fence Companies) pay Corporation Tax on all profits at the main rate of Corporation Tax.

Ring Fence Companies

*For companies with Ring Fence profits (income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf) these rates differ. The small profits rate of tax on those profits is 19 per cent and the Ring Fence fraction is 11/400 for financial years starting on or after 1 April 2011. The main rate is 30 per cent for financial years starting on or after 1 April 2011.

Corporation Tax on Chargeable Gains

Indexation Allowance allows for the effects of inflation when calculating the chargeable gains of companies or organisations liable to Corporation Tax.

When a company makes a capital gain on or after 1 January 2018, the indexation allowance that is applied in order to determine the amount of the chargeable gain will be calculated up to December 2017 rather than the month in which the disposal of the asset occurs.

Please contact us for further information.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.

VAT

If you are looking at VAT or planning your finances, please feel free to contact us.  We can discuss your specific circumstances to help you plan tax efficiently.

Standard Rate 20%
Reduced Rate 5%
Annual Registration Limit from 01/04/17 – 31/03/18 £85,000
Annual Deregistration Limit from 01/04/17 – 31/03/18 £83,000
Scheme Thresholds Registration Threshold Deregistration Threshold
Cash Accounting Scheme £1,350,000 £1,600,000
Annual Accounting Scheme £1,350,000 £1,600,000

Businesses with annual taxable turnover of up to £150,000 can register for a Flat Rate Scheme.

They must leave the Flat Rate Scheme once annual taxable turnover exceeds £230,000, or is expected to exceed £230,000 in the next 30 days.

Please contact us for further information.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.

Stamp Taxes On Property

Due to the complex nature of stamp duty and tax planning this information is offered as a guide only and professional advice should be taken before taking any action. Stamp Duty on the purchase or transfer or shares and securities at a value over £1000 is calculated at 0.5%, rounded up to the nearest £5.

Stamp Duty Land Tax (SDLT)

Residential Property

From 22nd March 2012 to 3rd December 2014

Transfers of property were subject to Stamp Duty Land Tax at the following rates:
Value up to £125,000* Nil
£125,001 to £250,000 1%
£250,001 to £500,000 3%
£500,001 to £1,000,000 4%
£1,000,001 to £2,000,000 5%
Over £2,000,000 7%

* The limit for residential property in disadvantaged areas is £150,000. Special rules applied for new zero-carbon homes. A 15% rate applied to properties over £500,000 (£2,000,000 prior to the 20th March 2014) purchased by certain “non-natural persons”.

From 4th December 2014 onwards

Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:
Value up to £125,000* Nil
£125,001 to £250,000 2%
£250,001 to £925,000 5%
£925,001 to £1,500,000 10%
Over £1,500,000 12%

* The limit for residential property in disadvantaged areas is £150,000. Special rules apply for new zero-carbon homes. A 15% rate applies to properties over £500,000 purchased by certain “non-natural persons”.

Where contracts were exchanged on or before 3 December 2014, and the transaction is completed on 4 December or later, you can choose whether you follow the new or the old rules.

First Time Buyers*

From 22nd November 2017 onwards

Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:
Value up to £300,000 Nil
£300,001 – £500,000 5%
Over £500,000 Standard rates apply

* A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.

Non-Residential Property

Up to and including 16th March 2016

Transfers of property are subject to Stamp Duty Land Tax at the following rates:
Value up to £150,000 Nil
£150,001 to £250,000 1%
£250,001 to £500,000 3%
Over £500,000 4%

From 17th March 2016 onwards

Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:
Value up to £150,000 Nil
£150,001 to £250,000 2%
Over £250,000 5%

Lease Rentals

SDLT is charged according to the Net Present Value (NPV) of all the rental payments over the term of the lease, with a single rate of 1% on residential NPVs over £125,000 and on non-residential NPVs over £150,000. From 17th March 2016, there is a new 2% rate for high value leases with NPVs over £5m.

VAT is excluded from treatment as consideration provided the landlord has not opted to charge VAT by the time the lease is granted.

Lease Premiums

SDLT on premiums is the same as for transfers of land (except that the zero rate does not apply where rent of over £1,000 annually is also payable).

Buy to Let / Additional Residential Properties

Purchases before 1st April 2016

Where Buy to Let properties or additional residential properties are purchased before 1 April 2016, SDLT is charged at the same rates as Residential Property above.

Purchases on or after 1st April 2016

Additional SDLT rates have been introduced on Buy to Let or additional residential properties purchased on or after 1 April 2016. The full list of rates is as follows:

Transfers of property are subject to Stamp Duty Land Tax on the portion of the purchase price that falls into each of the following rate bands:
£0* – £125,000 3%
£125,000 – £250,000 5%
£250,001 to £925,000 8%
£925,001 to £1,500,000 13%
Over £1,500,000 15%

*Transactions under £40,000 are charged at 0%. This does not mean that the first £40,000 is taxable at 0%. If the purchase price is £45,000, the full £45,000 is charged 3% stamp duty land tax.

Please note from 22 November 2017 relief from the additional rate can be claimed in the following circumstances:

  • a court order issued on a divorce or dissolution of a civil partnership prevents someone from disposing of their interest in a main residence
  • a spouse buys property from their spouse
  • a person buys a property in a child’s name or on a child’s behalf, where they are doing so in their capacity as the deputy of that child
  • a purchaser adds to their interest in their main residence

Welsh SDLT

The above rates will apply to Wales until SDLT is devolved to Wales on 1 April 2018.

Land and Buildings Transaction Tax (LBTT)

On 1 April 2015, SDLT in Scotland was replaced by Land and Buildings Transaction Tax (LBTT). LBTT is charged at different rates depending on the portion of the purchase price that falls into each of the following rate bands:

Residential Property

Value up to £145,000 Nil
£145,001 to £250,000 2%
£250,001 to £325,000 5%
£325,001 to £750,000 10%
Over £750,000 12%

First Time Buyers in Scotland*

Subject to approval from the Scottish Government, a First Time Buyers Relief will apply from the 2018-19 tax year for purchases of residential property in Scotland by first time buyers. The First Time Buyers Relief will allow first time buyers of residential property in Scotland where LBTT will apply to benefit from a 0% LBTT threshold on the first £175,000 of their purchase of residential property. The First Time Buyers Relief is subject to further consultation and so may be amended before implementation.

Non-Residential Property

Value up to £150,000 Nil
£150,001 to £350,000 3%
Over £350,000 4.5%

Lease Rentals for Residential Property

These are exempt from LBTT unless they are for longer than 175 years.

Lease Rentals for Non-Residential Property

Duty is charged according to the NPV of all the rental payments over the term of the lease, with a single rate of 1% on non-residential NPVs over £150,000.

Lease Premiums

LBTT on premiums is the same as for transfers of land (except that the zero rate does not apply where rent of over £1,000 annually is also payable).

Buy to Let

Purchases before 1st April 2016

Where Buy to Let properties or additional residential properties are purchased before 1 April 2016, LBTT is charged at the same rates as Residential Property above.

Purchases on or after 1st April 2016

Additional LBTT rates have been introduced on Buy to Let or additional residential properties purchased on or after 1 April 2016. The full list of rates is as follows:

Transfers of property are subject to Land and Buildings Transaction Tax on the portion of the purchase price that falls into each of the following rate bands:
Value up to £40,000 Nil
£40,001 to £145,000 3%
£145,001 to £250,000 5%
£250,001 to £325,000 8%
£325,001 to £750,000 13%
Over £750,000 15%

*Transactions under £40,000 are charged at 0%. This does not mean that the first £40,000 is taxable at 0%. If the purchase price is £45,000, the full £45,000 is charged 3% LBTT.

Please contact us for further information.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.

Tax Credits

If you are looking at Tax Credits and reviewing or planning your finances, please feel free to contact us.  We can discuss your specific circumstances to help you plan tax efficiently.

Working Tax Credit

Rates 2016/17 2017/18 2018/19
Basic element £1,960 £1,960 £1,960
Couple and lone parent
element
£2,010 £2,010 £2,010
30 hour element £810 £810 £810
Disabled worker element £2,970 £3,000 £3,090
Severe disability element £1,275 £1,290 £1,330

Childcare Element of Tax Credit

Rates 2016/17 2017/18 2018/19
Maximum eligible cost for one child £175 per week £175 per week £175 per week
Maximum eligible cost for two or more children £300 per week £300 per week £300 per week
Percentage of eligible costs covered 70% 70% 70%

Child Tax Credit Rates

Rates 2016/17 2017/18 2018/19
Child Tax Credit Family £545 £545 £545
Child element £2,780 £2,780 £2,780
Disabled child element £3,140 £3,175 £3,275
Severely disabled child element £1,275 £1,290 £4,600

 

Tax Credits Income Thresholds

Rates and thresholds 2016/17 2017/18 2018/19
First income threshold £6,420 £6,420 £6,420
First withdrawal rate (per cent) 41% 41% 41%
First threshold for those entitled to Child Tax Credit only £16,105 £16,105 £16,105
Income rise disregard £2,500 £2,500 £2,500
Income fall disregard £2,500  £2,500 £2,500

Child Benefit Rates

Rates 2016/17 2017/18 2018/19
Eldest/Only Child £20.70 £20.70 £20.70
Other Children £13.70 £13.70 £13.70

 

Guardian’s Allowance Rates

Rates 2016/17 2017/18 2018/19
Guardian’s Allowance £16.55 £16.70 £17.20

Please contact us for further information.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.

Income Tax Allowances

If you are looking at Income Tax Allowances and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances and look at tax efficient ways to legally minimise your income tax and optimise your tax relief.

2014-15 2015-16 2016-17 2017-18 2018-19
Personal Allowance for people born after 5 April 1948 (1) (2)(4) £10,000 £10,600 £11,000 £11,500 £11,850
Income limit for Personal Allowance (2) £100,000 £100,000 £100,000 £100,000 £100,000
Personal Allowance for people born between 6 April 1938 and 5 April 1948 (1) (2) (3) (4) £10,500 £10,600 £11,000 £11,500 £11,850
Personal Allowance for people born before 6 April 1938 (1) (2) (3) (4) £10,660 £10,660 £11,000 £11,500 £11,850
Married Couple’s Allowance (born before 6th April 1935 and aged 75 and over) (3) (4) £8,165 £8,355 £8,355 £8,455 £8,695
Income limit for the allowances for those born before 6 April 1948 £28,000 N/A N/A N/A N/A
Income limit for the allowances for those born before 6 April 1938 £27,000  £27,700 N/A N/A N/A
Minimum amount of Married Couple’s Allowance £3,140 £3,220 £3,220 £3,260 £3,360
Blind Person’s Allowance £2,230 £2,290 £2,290 £2,320 £2,390
Dividend Allowance (5) N/A N/A £5,000 £5,000 £2,000
Personal savings allowance for basic rate tax payers (6) N/A N/A £1,000 £1,000 £1,000
Personal savings allowance for higher rate tax payers (6) N/A N/A £500 £500 £500
Total income limit for Married couples allowance  £27,000  £27,700 £27,700 £28,000 £28,900
Transferable marriage allowance (7)  N/A £1,060  £1,100 £1,150 £1,185
Trading allowance (8) N/A  N/A N/A £1,000 £1,000
Property income allowance (9)  N/A N/A N/A £1,000 £1,000

If you are looking at Income Tax Allowances and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances and look at tax efficient ways to legally minimise your income tax and optimise your tax relief.

  1. From 6thApril 2016 onwards, all individuals are entitled to the same personal allowance, regardless of date of birth. This is set by the UK Government and is therefore the same for all UK taxpayers.
  2. The Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
  3. These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit.
  4. The Personal Allowance for Scottish resident taxpayers is £11,500 from 6 April 2017 until 5thApril 2018. The Personal Allowance for Scottish resident taxpayers is expected to be £11,850 from 6th April 2018, subject to approval of the draft 2018-19 Scottish Budget by the Scottish Parliament.
  5. Tax relief for the Married Couple’s Allowance is given at the rate of 10 per cent.
  6. From 6thApril 2016, the new Dividend Allowance results in individuals not paying tax on the first £5,000 of dividend income they receive. From 6thApril 2018 the Dividend Allowance will reduce to £2,000.
  7. From 6thApril 2016, the new Personal Savings Allowance results in basic rate tax payers not paying tax on the first £1,000 of savings income they receive. Higher rate tax payers do not pay tax on the first £500 of savings income.
  8. Introduced from 6 April 2015, 10% of the unused element of a personal allowance can be transferred between spouses, as long as the higher earning spouse does not pay income tax at above basic rate. For Scottish tax payers the allowance is still based on the UK basic and higher rate thresholds.
  9. The allowance was introduced from 6 April 2017. Where an individual’s trading income is less than this allowance, full relief will be given so that the income is not charged to tax, unless the individual elects otherwise. If the individual’s trading income is more than this allowance, the individual may elect to deduct this allowance from the trading income instead of the usual method of deducting the actual expenses incurred. This allowance does not apply to partnership trading income.
  10. The allowance was introduced from 6 April 2017. Where an individual’s property income is less than this allowance, full relief will be given so that the income is not charged to tax, unless the individual elects otherwise. If the individual’s property income is more than this allowance, the individual may elect to deduct this allowance from the property income instead of the usual method of deducting the actual expenses incurred. This allowance does not apply to partnership property income nor income to which rent a room relief is given.

Please contact us for further information.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.

National Insurance Contributions

If you are looking at National Insurance Contributions or planning your finances, please feel free to contact us.  We can discuss your specific circumstances to help you plan tax efficiently.

2018 – 2019

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of
Up to £116 (Lower Earnings Limit) Nil Nil
£116 – £162 (Primary Threshold) Nil Nil
£162 – £892 (Upper Earnings Limit) 13.8% 12%
Over £892 13.8% 2%
Employment allowance** (per employer, per year) £3,000 Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self-employed) £2.95 per week
Limit of net earnings for class 2 exception £6,205 per annum
Class 3 (Voluntary) £14.65 per week
Class 4* (Self-employed on profits)
£8,424 – £46,350 9%
Excess over £46,350 2%
*Exemption applies if State Retirement Age was reached by 6 April 2018.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

2017 – 2018

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of
Up to £113 (Lower Earnings Limit) Nil Nil
£113 – £157 (Primary Threshold) Nil Nil
£157 – £866 (Upper Earnings Limit) 13.8% 12%
Over £866 13.8% 2%
Employment allowance** (per employer, per year) £3,000 Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self-employed) £2.85 per week
Limit of net earnings for class 2 exception £6,025 per annum
Class 3 (Voluntary) £14.25 per week
Class 4* (Self-employed on profits)
£8,164 – £45,000 9%
Excess over £45,000 2%
*Exemption applies if State Retirement Age was reached by 6 April 2017.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

2016 – 2017

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of
Up to £112 (Lower Earnings Limit) Nil Nil
£112 – £155 (Primary Threshold) Nil Nil
£155 – £156 (Secondary Threshold) Nil 12%
£156 – £827 (Upper Earnings Limit) 13.8% 12%
Over £827 13.8% 2%
Employment allowance** (per employer, per year) £3,000 Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self-employed) £2.80 per week
Limit of net earnings for class 2 exception £5,965 per annum
Class 3 (Voluntary) £14.10 per week
Class 4* (Self-employed on profits)
£8,060 – £43,000 9%
Excess over £43,000 2%
*Exemption applies if State Retirement Age was reached by 6 April 2016.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

2015 – 2016

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of:
Up to £112 (Lower Earnings Limit) Nil Nil
£112 – £155 (Primary Threshold and Secondary Threshold) Nil Nil
£156 – £815 (Upper Earnings Limit and Upper Secondary Threshold) 13.8% 12%
Over £815 13.8% 2%
Employment Allowance** (per employer, per year) £2,000 Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self-employed) £2.80 per week
Limit of net earnings for class 2 exception £5,965 per annum
Class 3 (Voluntary) £14.10 per week
Class 4* (Self-employed on profits)
£8,060 – £42,385 9%
Excess over £42,385 2%
*Exemption applies if State Retirement Age was reached by 6 April 2015.

2016 – 2017

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of
Up to £112 (Lower Earnings Limit) Nil Nil
£112 – £155 (Primary Threshold) Nil Nil
£155 – £156 (Secondary Threshold) Nil 12%
£156 – £827 (Upper Earnings Limit) 13.8% 12%
Over £827 13.8% 2%
Employment allowance** (per employer, per year) £3,000 Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self-employed) £2.80 per week
Limit of net earnings for class 2 exception £5,965 per annum
Class 3 (Voluntary) £14.10 per week
Class 4* (Self-employed on profits)
£8,060 – £43,000 9%
Excess over £43,000 2%
*Exemption applies if State Retirement Age was reached by 6 April 2016.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

With effect from 6th April 2015, no employer’s National insurance contributions are due for employees aged under 21 on earnings up to the Upper Secondary Threshold. From 6th April 2016, no employer’s National insurance contributions are due for apprentices up to 25, up to the Upper Secondary Threshold.

Please contact us for further information.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.

Capital Gains Tax

If you are looking at Capital Gains Tax or planning your finances, please feel free to contact us. We can discuss your specific circumstances to help you plan tax efficiently.

2016/17 2017/18 2018/19
Individuals
Exemption £11,100 £11,300 £11,700
Standard rate 10%# 10%# 10%#
Higher rate* 20%# 20%# 20%#
Trusts
Exemption £5,550 £5,650 £5,850
Rate 20% 20% 20%
*For higher and additional rate taxpayers

# A standard rate of 18% and higher rate of 28% applies to gains on residential property and carried interests.

Entrepreneurs’ Relief

The first £10m of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.

External Long Term Gain Relief in Unlisted Companies

The first £10m of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.

Please contact us for further information.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.

Universal Credit Intro & Rates

Universal Credit is a new single payment for people who are looking for work or are on a low income.

Universal Credit will help claimants and their families to become more independent and will simplify the benefits system by bringing together a range of working-age benefits into a single payment.

It was introduced in October 2013 and will be rolled out nationally at a progressive rate according to HMRC.  This is expected to be completed by the end of 2017 and will replace:

  • Income-based Jobseeker’s Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Child Tax Credits
  • Working Tax Credits
  • Housing Benefit

The differences between Universal Credit and the current system

The main differences between Universal Credit and the current welfare system are:

  • Universal Credit will be available to people who are in work and on a low income, as well as to those who are out of work
  • Most people will apply online and manage their claim through an online account
  • Universal Credit will be responsive – as people on low incomes move in and out of work, they’ll get ongoing support, giving people more incentive to work for any period of time that is available
  • Most claimants on low incomes will still be paid Universal Credit when they first start a new job or increase their part-time hours
  • Claimants will receive just 1 monthly payment, paid into a bank account in the same way as a monthly salary
  • Support with housing costs will go direct to the claimant as part of their monthly payment

Universal Credit Rates 2016/2017 (Monthly) – 2017/2018 (Monthly)

Standard Allowances

Single claimant aged under 25: £251.77 – £251.77

Single claimant aged 25 or over: £317.82 – £317.82

Joint claimants both aged under 25: £395.20 – £395.20

Joint claimants either aged 25 or over: £498.89 – £498.89

Child Element

First child or qualifying young person: £277.08 – £277.08 (born before 6 April 2017)  £231.67 (born on or after 6 April 2017)

Second and each subsequent child or qualifying young person: £231.67 – £231.67

Additional amount for disabled child or qualifying young person

Low rate: £126.11 – £126.11 – child in receipt of DLA mobility or care (excluding high rate care component or registered blind)

High rate: £367.92 – £372.30 – child in receipt of high rate care component DLA or registered blind

Capability for Work Element

Limited capability for work (LCW): £126.11 -£126.11

Limited capability for work and work-related activity (LCWRA):  £315.60 – £318.76

Carer Element

Caring for a severely disabled person for at least 35 hours a week: £150.39 – £151.89

You do not have to claim Carer’s Allowance to get the carer element.

Childcare Costs Element

70% of relevant childcare costs up to:

Maximum amount for one child – £646.35 – £646.35

Maximum amount for two or more children – £1,108.04 – £1,108.04

Housing Costs Element

Can cover:

  • Eligible rent payments
  • Certain service charges
  • Mortgage interest.

There is a qualifying period of three months before you can be paid this element. You will not be paid a housing element if you are in paid work.

Please contact us for further information.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.

Inheritance Tax

Standard thresholds 2016-17 2017/18 2018/19
Nil rate band – Up to £325,000 0% 0% 0%
Over £325,000 40%* 40%* 40%*
Combined thresholds (for married couples and civil partners) # 2016-17 2017/18 2018/19
Nil rate band – Up to £650,000 0% 0% 0%
Over £650,000 40%* 40%* 40%*

* A lower rate of 36% applies where 10% or more of a deceased person’s net estate is left to charity and some lifetime gifts are taxed at 20%.

# There is no official nil rate band for couples.  The bands illustrate that for couples, the unused element of a deceased person’s nil rate band can be utilised by the surviving spouse or civil partner.

Main Exemptions

  1. The first £3,000 per donor of lifetime transfers in any tax year plus any unused balance from previous year.
  2. Gifts of up to but not exceeding £250 per year to any number of persons.
  3. Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent or more remote ancestor or a party to the marriage, or up to £1,000 by any other person.
  4. Gifts made out of income that form part of normal expenditure.
  5. Gifts to charities, whether made during lifetime or on death.

Main Reliefs

Business or interest in a business 100%
Qualifying shareholdings in unquoted companies 100%
A transfer out of shares controlling more than 50% of the voting rights in a listed company. 50%
Land and buildings, plant and machinery used by transferor’s controlled company or partnership 50%
Land and buildings, plant and machinery used in a business and held in a trust in which the donor has an interest in possession. 50%
Agricultural property 100% or 50%

Please note that there are strict qualifying criteria which must be satisfied in order to take advantage of the above reliefs. Please contact us to discuss ways of planning your affairs such that you will qualify for reliefs where possible.

For 17/18, a further nil rate band of £100,000 may be available in relation to current or former residences. Nil rate bands of surviving spouses/civil partner may be increased by unused nil rate bands of deceased spouses/ civil partners.

For 18/19, a further nil rate band of £125,000 may be available in relation to current or former residences. Nil rate bands of surviving spouses/civil partner may be increased by unused nil rate bands of deceased spouses/ civil partners.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.

Key Tax Dates and Deadlines for Small Businesses

This is not a complete or comprehensive list of all accountancy dates.  It is a summary of the key tax dates and deadlines for small businesses.  For specific advice, please contact us. For further information or reading please visit www.hmrc.gov.uk/.

Current and Upcoming Key Dates

Month Date
January 1st Payment of tax for companies with a 31 March year end
31st Deadline for Self Assessment Tax Returns
31st Balancing payment for previous tax year ending on 5 April
31st First payment on account for current tax year ending on 5 April
31st Tax due on gains made
31st Online filing deadline for Self Assessment Tax Returns
February 1st Payment of tax for companies with a 30 April year end
March 1st Payment of tax for companies with a 31 May year end
April 1st Payment of tax for companies with a 30 June year end
19th Final Full Payment Submission (FPS) or Employer Payment Submission (EPS) Deadline
May 1st Payment of tax for companies with a 31 July year end
19th Deadline for Early Year Update (EYU)
31st Deadline for distributing P60s to employees
June 1st Payment of tax for companies with a 31 August year end
July 1st Payment of tax for companies with a 30 September year end
6th P11d deadline for submission to HMRC and distribution to employees
31st Second payment on account for tax year finished on previous 5 April
19th payment on benefits and expenses reported on forms P11d (non electronic means)
22nd payment on benefits and expenses reported on forms P11d (electronic means)
August 1st Payment of tax for companies with a 31 October year end
September 1st Payment of tax for companies with a 30 November year end
October 1st Payment of tax for companies with a 31 December year end
19th payment of tax to which a PAYE settlement relates (non electronic means)
22nd payment of tax to which a PAYE settlement relates (electronic means)
31st Normal filing deadline for “paper” tax returns
November 1st Payment of tax for companies with a 31 January year end
December 1st Payment of tax for companies with a 28 or 29 February year end
Every month
Dates depending on accounting reference date
14th of the month possibly payable if paying by quarterly instalment payments
14th of the month payment relating to previous month or quarter (non electronic payment means)
14th of the month payment relating to previous month or quarter (non electronic payment means)
17th of the month payment relating to previous month or quarter (electronic payment means)
17th of the month payment relating to previous month or quarter (electronic payment means)
last day of the month 12 month filing deadline for CT600 – Corporation Tax Returns

Other Variable Dates

PAYE and Class 1 NIC Deadlines

The monthly payment of PAYE and Class 1 NICs by approved electronic methods is the 22nd of each month.

VAT Deadlines

There are no fixed times of the year to pay VAT, each business is different. Payment dates depend on the type of business you are in, the VAT scheme you are in and the choices you have made. You may pay VAT monthly, quarterly or annually.

Corporation Tax Deadlines

The deadline for a private limited company to file a Corporation Tax Return (CT600) is twelve months after its financial year ends.

If a private limited company’s profits are at an annual rate of up to £1.5 million then the deadline for payment of the amount of Corporation Tax due is nine months and a day after the company’s accounting period end date.

If a private limited company’s profits are at an annual rate exceeding £1.5 million then the company must pay Corporation Tax in quarterly instalments in the year, unless:

  • the company’s annualised net tax liability is less than £10,000; or
  • the company’s annualised profits for the current year do not exceed £10 million and either of the following applies:
    • this is the company’s first accounting period; or
    • for the previous accounting period, either the company’s annualised rate of profits did not exceed £1.5 million or its annualised net tax liability did not exceed £10,000.

Where quarterly instalments are necessary for a financial year, two instalments will be due before the year end and two after. The Corporation Tax liability will need to be estimated in advance of the 1st instalment and a quarter of this amount paid on each payment date. The Corporation Tax estimate must be updated as the company progresses through the financial year and future instalments updated with top-up payments due for earlier quarters. The final quarterly payment will be the company’s actual Corporation Tax liability for the financial year less the total of any payments made.

For a financial year, the four quarterly instalments are due:

  • 1st instalment – six months and thirteen days after the first day of the financial year;
  • 2nd instalment – three months after the date of the first instalment;
  • 3rd instalment – three months after the date of the second instalment i.e. 14 days after the last day of the accounting period
  • 4th instalment – 3 months and 14 days after the date of the last day of the financial year.

Please contact us for specific guidance on payment dates where a company’s accounting period is not a financial year. The above thresholds reduce where a company is part of a group or has associated companies. Please contact us to discuss how this will affect your company.

Disclaimer:  These contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.