Audit and Assurance
  • 23 Mar 2017
  • Nov

All figures are annual amounts.

Allowances

Personal allowance £11,500
Tapered on income above £100,000
Transferable to spouse/civil partner taxed at 20% £1,150
Trading income £1,000
Property income £1,000
Rent-a-room £7,500

Tax on earnings

Earnings to £33,500 20%
£33,501 to £150,000 40%
Over £150,000 45%

Tax on earnings for Scottish residents

Earnings to £31,500 20%
£31,501 to £150,000 40%
Over £150,000 45%

Tax on interest

First £5,000 0%
20% taxpayers £1,000 @ 0%
40% taxpayers £500 @ 0%
Balance taxed at marginal rates

Tax on dividends

First £5,000 0%
Balance in band to £33,500 7.5%
£33,501 to £150,000 32.5%
Over £150,000 38.1%

National insurance

Class 1 employers 13.8% over £8,164
Under 21 (apprentices 25) 0% to £45,000
Class 1 employees 12% on £8,164 to £45,000; 2% above £45,000
Class 4 self-employed 9% on £8,164 to £45,000; 2% above £45,000
Class 2 self-employed £148.20 Not payable if profits under £6,025
Class 3 voluntary £741

Employment allowance

Set against employer’s Class 1 NIC (Not available for one-person companies) £3,000

Pension contributions

No earnings £3,600 gross
Otherwise 100% of earnings
Annual contribution caps:
No pension taken £40,000
Some pension taken £4,000
Adjusted income over £150,000:
annual cap tapered to £10,000
Lifetime pension fund cap £1m

Corporation tax

All profits 19%

VAT

Registration turnover £85,000
Deregistration turnover £83,000
Standard rate 20%
Reduced rate 5%

Inheritance tax

Nil rate band £325,000
Excess taxed at 40%
Where 10% left to charity 36%

Capital gains tax

Within basic tax rate 10%
Higher tax bands 20%
Surcharge for residential property and carried interest 8%
Entrepreneurs’ relief 10%
Annual exempt amount £11,300
VAT changes
VAT
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