Ely Tax & Accountancy joined the Ely office of Whiting & Partners Chartered Accountants & Business Advisers on 1st October 2017, you should shortly be redirected to the Whiting & Partners website https://www.whitingandpartners.co.uk
Income Tax Rates and Bands
Income tax rates are to remain the same to 5 April 2016, with the exception of the savings rate. This will be cut to 0% from 6 April 2015. However, the savings rate only applies if individual's net non-savings taxable income does not exceed the savings rate limit.
The income tax rates and bands have been announced as:
|Savings rate: 10%, 0% from 2015/16||0 - £5,000||0- £5,000||0- £5,000|
|Dividend Allowance: 20%||NA||0 - £5,000||0 - £5,000|
|Basic rate: 20%||0 - £31,785||0 - £32,000||0 - £33,500|
|Higher rate: 40%||£31,786 - £150,000||£32,001 - £150,000||£33,501 - £150,000|
|Additional rate: 45%||Over £150,000||Over 150,000||Over 150,000|
When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £43,000 in 2016/17 and £45,000 in 2017/18. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.
From 2017/18 the basic rate band on non-savings income for Scottish Taxpayers will be set at £43,000. For all other income types it will remain in line with the main UK band of £45,000.