Please use the menu below to view the current tax rates. If you have any questions, you can call on 01234 888703 or send us a message here.
|Personal Allowance (PA) *†||£11,850||£11,500|
|Blind Person's Allowance||£2,390||£2,320|
|Rent a room relief**||£7,500||£7,500|
* PA will be withdrawn at £1 for every £2 by which 'adjusted income' exceeds £100,000. There will therefore be no allowance given if adjusted income is £123,700 or more (2017/18: £123,000).
†10% of the PA (2018/19: £1,185; 2017/18: £1,150) can be transferred to a spouse of civil partner who is no more than a basic rate taxpayer.
**If gross income exceeds it, the limit may be deducted instead of actual expenses.
|Basic Rate Band (BRB)||£34,500||£33,500|
|Higher Rate Band (HRB)||34,501-150,000||33,501-150,000|
|Additional rate||over £150,000||over £150,000|
|Personal Savings Allowance (PSA)|
|- Basic rate taxpayer||£1,000||£1,000|
|- Higher rate taxpayer||£500||£500|
|Dividend Allowance (DA)||£2,000||£5,000|
BRB and additional rate threshold are increased by personal pension contributions (up to permitted limit) and Gift Aid donations.
The 2018/19 tax rates and bands for Scottish taxpayers have not been announced. For 2017/18, the basic rate band is £31,500.
|Tax rates||2018/19 & 2017/18|
|Rates differ for General/Savings/Dividend income||G||S||D|
General income (salary, pensions, business profit, rent) usually uses personal allowance, basic and higher rate bands before savings income (interest). To the extent that savings income falls in the first £5,000 of the basic rate band, it is taxed at nil rather than 20%.
The PSA taxes interest at nil where it would otherwise be taxable at 20% or 40%.
Dividends are normally taxed as the 'top slice' of income. The DNRB taxes the first £5,000 of dividend income at nil, rather than the rate that would normally apply.
High Income Child Benefit Charge (HICBC
1% of child benefit for each £100 of adjusted net income between £50,000 and £60,000.
|Remittance basis charge||2018/19||2017/18|
|For non-UK domiciled individuals who have been UK resident in at least:|
|7 of the preceding 9 tax years||£30,000||£30,000|
|12 of the preceding 14 tax years||£60,000||£60,000|
|15 of the preceding 20 tax years||Deemed to be UK domiciled.|
|Lifetime allowance (LA)||£1,030,000||£1,000,000|
|Annual allowance (AA) *||40,000||40,000|
Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600
* The AA is usually reduced by £1 for every £2 by which relevant income exceeds £150,000, down to a minimum AA of £10,000. The AA can be reduced to £4,000, where certain pension drawings have been made.
|State pension (per week)||2018/19||2017/18|
|Old state pension - Single person||£125.95||£122.30|
|Old state pension - Married couple||£201.45||£195.60|
|New state pension §||£164.35||£159.55|
§ applies to those reaching state retirement age after 5 April 2016.
|Individual Savings Account (ISA)|
|- Overall limit||£20,000||£20,000|
|- Lifetime ISA||£4,000||£4,000|
|EIS - 30% relief||£2,000,000||£1,000,000|
|EIS eligible for CGT deferral relief||Unlimited||Unlimited|
|Seed EIS (SEIS) - 50% relief||£100,000||£100,000|
|SEIS - 50% exemption for reinvested gains||£100,000||£100,000|
|Venture Capital Trust (VCT) - 30% relief||£200,000||£200,000|
* For 2018/19, amount over £1m must be invested in 'knowledge-intensive' companies.
|Class 1 (employees)||Employee||Employer|
|Main NIC rate||12.0%||13.8%|
|No NIC on first||£162pw||£162pw|
|Main rate* charged up to||£892pw||no limit|
|2% rate on earnings above||£892pw||N/A|
|Employment allowance per business**||N/A||£3,000|
* Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £892pw.
** Some businesses do not qualify, including some sole director companies.
Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee's behalf under a PAYE settlement agreement (Class 1B).
Class 2 (Self-employed)
|Flat rate per week||£2.95|
|Small profits threshold||£6,205|
Class 3 (Voluntary)
|Class 3: Flat rate per week||£14.65|
|Class 3A: Contributions vary with age|
Class 4 (Self-employed)
|On profits £8,164 to £45,000||9.0%|
|On profits over £45,000||2.0%|
Taxable benefit: Chargable value multiplied by chargeable %.
Chargeable value: Initial list price of car (including most accessories), reduced by any capital contribution (maximum £5,000) by employee when car is first made available.
|Co2 emmisions g/km||Petrol||Diesel|
|Above 94||Add 1% for every 5g/km|
|Above 179 (petrol)/159 diesel||37% maximum|
Chargeable value of £3,350 (2017/18 £3,230) if private use is more than home-to-work. Electric vans £670 (2017/18 £646).
Employer provides fuel for private motoring in an employer-owned:
Car: CO2-based percentage from above table multiplied by £23,400 (2017/18 £22,600).
Van: £633 (2017/18 £610).
Employee contributions for fuel do not reduce taxable figure unless all private fuel is paid for by the employee (in which case there is no benefit charge).
|Employee's own transport||per business mile|
|Cars first 10,000 miles||45p|
|Cars over 10,000 miles||25p|
|Individual (to basic rate limit)*||10%||10%|
|Individual (above basic rate limit)*||20%||20%|
|Entrepeneurs' Relief (ER)**||10%||10%|
* Individuals are taxed at 18%/28% on gains on residential property and receipts of carried interest. Trusts are taxed at 28% in these circumstances.
** ER is available for lifetime gains of up to £10m. Qualifying disposals include a trading business, shares in a trading company (from a minimum 5% holding) by an officer/employee or certain holdings by external investors. Various conditions apply.
Shares in an unquoted trading company may be eligible for a 10% CGT rate on lifetime gains up to £10m, if disposed of after 5 April 2019 by someone who is neither a paid officer njor employee of the company (Investors' Relief).
|Corporation tax rate||19%||19%|
|Research and development relief||From 01/01/2018||From 31/12/2017|
|SME enhanced expenditure deduction scheme*||130%||130%|
|Large company R&D expenditure credit (RDEC) scheme**||12%||11%|
* Additional deduction for qualifying R&D.
** Taxable expenditure credit for qualifying R&D.
SMEs that make losses can surrender the deduction to HMRC in exchange for a payment of 14.5% of the loss.
|Plant and machinery|
|100% Annual Investment Allowance (AIA)||£200,000|
|- energy and water-efficient equipment||100%|
|- writing down allowance: general pool (reducing balance)||18%|
|- writing down allowance: special rate pool (reducing balance)||8%|
The special rate pool includes long life assets, integral plant in buildings, thermal insulation.
|New cars only||Up to 50||Up to 75||100%|
|In general pool||Up to 110||Up to 130||18% pa|
|In special rate pool||Above 110||Above 130||8% pa|
Annual Tax on Enveloped Dwellings (ATED)
ATED applies to 'high value' residential properties owned via a corporate structure, unless the property is used for a qualifying purpose. The tax applies to properties valued at more than £500,000.
|Property value||Annual charge to|
|£0.5m - £1m||£3,600||£3,500|
|£1m - £2m||£7,250||£7,050|
|£2m - £5m||£24,250||£23,550|
|£5m - £10m||£56,550||£54,950|
|£10m - £20m||£113,400||£110,100|
Stamp Duty Land Tax (SDLT) and
Land and Buildings Transaction Tax (LBTT)
Residential property (1st property only)
LTT replaces SDLT in Wales from 1 April 2018.
A supplement of 3% of the total purchase price applies for all three taxes where an additional residential property is purchased for more than £40,000 (unless replacing a main residence.
- From 22.11.17, first-time buyers purchasing a property of up to £500,000 pay a nil rate on the first £300,000 of purchase price.
* A rate of 15% applies to the total purchase price where the property is valued above £500,000 and purchased by a 'non-natural person' (e.g. a company).
Non residential or mixed use property
LBTT rates may change after the Scottish budget in December 2017.
|Standard rate (1/6 of VAT-inclusive price)||20%|
|Registration level from 1.4.2017||£85,000 per annum|
|Deregistration level from 1.4.2017||£83,000 per annum|
Flat rate scheme (FRS)
|Annual taxable turnover to enter scheme||Up to £150,000|
|Must leave scheme if annual taxable turnover||Exceeds £230,000|
If using FRS, the VAT paid by the business is a fixed percentage (based on business category) of "FRS Turnover" rather than the net of output tax over input tax. Input tax is usually not recoverable.
Cash accounting and annual accounting schemes
|Annual taxable turnover to enter scheme||Up to £1.35m|
|Must leave scheme if annual taxable turnover||Exceeds £1.60m|
Option to tax property
Notify HMRC within 30 days.
|Nil rate band (NRB)*||£325,000||£325,000|
|NRB Residential Enhancement (RNRB) †*||£125,000||£100,00|
|Rate of tax above nil rate band**||40%||40%|
|Lifetime transfers to most trusts||20%||20%|
† RNRB is available for transfers of a main residence to direct descendents. It tapers away at the rate of £1 for every £2 of estate value above £2m.
* Up to 100% of the proportion of a deceased spouse's/civil partner's unused NRB and RNRB band may be claimed to increment the current NRB and RNRB when the survivor dies.
** Rate reduced to 36% if at least 10% of the relevant estate is left to charity. Unlimited exemption for transfers between spouses/civil partners, except if UK domiciled transferor and foreign domiciled transferee, where maximum exemption £325,000.
Unlimited excemption for transfers between spouses/civil partners, except if UK domiciled transferor and foreign domiciled transferee, where maximum exemption £325,000.
100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying incorporated trading businesses and certain farmland/buildings.
Reduced tax charge on gifts within 7 years before death
|Years before death||0 - 3||3 - 4||4 - 5||5 - 6||6 - 7|
|% of full death tax charge payable||100||80||60||40||20|
Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient.
|1st payment on account||31 January||2019||2018|
|2nd payment on account||31 July||2019||2018|
|Balancing payment||31 January||2020||2019|
|Capital gains tax*||31 January||2020||2019|
* Non-residents with gains on UK residential property must pay CGT within 30 days of disposal unless already filing a self assessment tax return.
Other payment dates
|Class 1A NIC||19 July||2019||2018|
|Class 1B NIC||19 October||2019||2018|
Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a 'large' company paying by quarterly instalments.
2017/18 Filing deadlines
|Issue P60s to employees||31 May||2018|
|P11D, P11d)b)||6 July||2017|
|Self assessment tax return (SATR) paper version||30 December||2018|
|Online SATR||31 January||2019|
|National Minimum Wage||From||From|
|Rates per hour||1.10.18||1.10.17|
|Aged 25 and over (National Living Wage)||£7.83||£7.50|
|Age 21 - 24||£7.38||£7.05|
|Age 18 -20||£5.90||£5.60|
|Age 16 -17||£4.20||£4.05|
|First eligible child||£20.70||£20.70|
|Each subsequent child||£13.70||£13.70|
You are advised to consult us before acting on any information contained herein.
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