Tax Rates & Thresholds 2017/18

Tax bands for Income Tax:


Basic Rate

£0 - £33,500

Higher Rate

£33,500 - £150,000

Additional Rate

Over £150,000


Personal Allowance



Your first £11,500 of income will fall under the personal allowance and is tax free. If you have income of £45,000 then £33,500 is taxed at the basic rate and the remainder falls in the personal allowance meaning none of it falls in the higher rate.

Your personal allowance goes down by £1 for every £2 that your income is above £100,000. This means your allowance is zero if your income is £123,000 or above.



Income tax rates:


Basic Rate


Higher Rate


Additional Rate




Dividend tax rates:


Basic Rate


Higher Rate


Additional Rate



The first £5,000 dividends are taxed at 0% (dividend allowance).



Self-Employment rates:


Class of NICs



Class 2 NICs

£6,025 profit

£2.85 / year

Class 4 NICs

£8,164 profit

9% on profits between £8,164 - £45,000

2% on profits over £45,000



National Living Wage & Minimum Wage:


25 and over

21 to 24

18 to 20

Under 18








Entitlement to apprentice rate:

  • Aged under 19
  • Aged 19 or over and in first year of apprenticeship 


Apprentices entitled to minimum wage:

  • Aged 19 or over
  • Have completed first year of apprenticeship



Company Taxes:


Corporation Tax Rate



VAT Registration Threshold


VAT Deregistration Threshold



Flat Rate Scheme Registration Threshold



If your income exceeds £230,000 in a year then you will need to deregister from the flat rate scheme.



Directors Loan


Not repaid within 9 months of year-end

32.50% - S455 tax

Exceeds £10,000 at any point in year

Benefit in Kind – included on your P11D


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