Tax info

The information below has been carefully kept to a minimum to be most relevant to Contractors, Freelancers and Small Businesses. In all cases you should be aware that many more taxes and rules exist and may be relevant to you or your business.

Please note: The rates, allowances and comments below are subject to many special rules and exceptions that apply in differing circumstances. All information shown should be taken as a general guide only.

We do not accept any responsibility for any loss occasioned to any person as a result of action or refraining from action as a result of any item herein

MAIN PERSONAL TAXES 2017/18 2016/17
Income Tax Rates
0% Income tax rate on Personal Allowance,
where available
£11,500 £11,000
After Personal Allowance if available:
20% Basic rate Income tax and
7.5% Dividend rate tax on income bands
£0 to £33,500 £0 to £32,000
On the next:
40% Higher rate Income tax and
32.5% Dividend rate tax on income bands
£33,500.01 to £150,000 £32,000.01 to £150,000
On the next:
45% Additional rate Income tax and
38.1% Dividend rate tax on income bands
Over £150,000 Over £150,000
NIC Class 1 Employee Primary Contributions
0% NIC on earnings up to
Primary Threshold
£0 to £8,164 £0 to £8,060
12% NIC on earnings up to
Upper Earnings Limit
£8,164.01 to £45,000 £8,060.01 to £43,000
2% NIC on earnings up to
Upper Earnings Limit
Over £45,000 Over £45,000
General income tax allowances and reliefs
Personal allowance (Note: Withdrawn at a rate
of £1 of allowance for every £2 of income over £100,000)
£11,500 £11,000
Dividend allowance £5,000 £5,000
Savings allowance – Basic rate taxpayer £1,000 £1,000
Savings allowance – Higher rate taxpayer £500 £500
Savings allowance – Additional rate taxpayer Nil Nil
Tax Efficient Investments
ISA’s (Individual Savings Accounts) contribution £20,000 £15,240
VCTs (Venture Capital Trusts) Income Tax Relief on
Investments to £200,000 + CGT Benefits
30% 30%
EIS (Enterprise Investment Scheme) Income
Tax Relief on Investments to £1,000,000 + CGT Benefits
30% 30%
SEIS (Seed Enterprise Investment Scheme) Income
Tax Relief on Investments to £100,000 + CGT Benefits
50% 50%
Capital gains tax rates, allowances and reliefs
Basic Rate Taxpayers 10% 10%
Higher and Additional rate taxpayers 20% 20%
Chargeable gains accruing on the disposal of
residential property and other assets for Higher
and Additional rate taxpayers
28% 28%
Entrepreneurs’ relief (Special rules and
£10m lifetime limit)
10% 10%
Annual exemption (individuals and personal
representatives)
£11,300 £11,100
Principal Private Residence relief rate on Gains
on residential properties that qualify
100% 100%
MAIN COMPANY TAXES Financial year
from 1 April
2017
Financial year
from 1 April
2016
Corporation Tax
Corporation tax rate on Company profits 19% 20%
NIC Class 1 Employer Secondary Contributions
0% NIC on earnings up to
Secondary Threshold
£0 to £8164 £0 to £8060
13.8% NIC on earnings above
Secondary Threshold
Over £8,164 Over £8,060
P11d Class 1A 13.8% 13.8%
SELF EMPLOYED Fiscal year
from 6 April
2017
FIscal year
from 6 April
2016
BUSINESS TAX
Profits from Self Employment Income Tax Rates Above Apply Income Tax Rates Above Apply
National Insurance Contributions
Class 2 NIC Weekly Due (if Profits above) £2.85
(On profits > £6,025)
£2.80
(On profits > £5,965)
0% Class 4 NIC on profits up to £0 to £8,164 £0 to £8,060
9% Class 4 NIC on profits between £8,164.01 to
£45,000
£8,060.01 to
£43,000
2% Class 4 NIC on profits above Over
£45,000
Over
£43,000
VALUE ADDED TAX Financial year
from 1 April
2017
Financial year
from 1 April
2016
Registration threshold: taxable supplies
at the end of any month exceed either in the
past 12 months or in the next 30 days.
£85,000 £83,000
Standard Rate 20% 20%
Limited Cost Traders rate for those on the
Flat Rate Scheme on taxable supplies from
1 April 2017(Note 1% discount also
available for 1st 12 months)
16.5% on Gross taxable sales
equates to 19.8% with no recovery
of most Input VAT
14.5% and lower rates,
on Gross taxable sales but with no recovery
for most input VAT
Cash and Annual Accounting Schemes available for turnover up to £1,350,000 £1,350,000
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