New thresholds detailed below but if you want edited highlights; personal allowance has been increased by £500 to £11,500 so your new standard tax code will be 1150L, we are also seeing for the first time the Scottish threshold varying from England, Wales and NI. See below.
Marriage allowance reminder and update: this is a transferable allowance made available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse who is not liable to income tax; or not liable at the higher or additional rates, can transfer their unused personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher rate. Ring any bells? Of course it does… Well the amount available for transfer has increased from £1,100 to £1,150.
Employer relief on national insurance for the employment of youngsters (under 21) and apprentices (under 25) remains in place up to earnings of £45,000.
Now the detail…
Tax thresholds and rates 2016/17 2017/18*
|0 – £32,000||20%||0 – £33,500*||20%|
|£32,001 to £150,000||40%||£33,501* to £150,000||40%|
|Over £150,000||45%||Over £150,000||45%|
NIC thresholds and rates* In Scotland £31,930
NIC thresholds and rates
|Per month 2016/17||Per week 2017/18||Per month 2017/18||Rates (Unchanged)|
|Lower earnings limit||£112||£486||£113||£490||0%|
|Primary threshold (Ees )||£155||£672||£157||£680||12%|
|Secondary threshold (Ers)||£156||£676||£157||£680||13.8%|
|Upper earnings limit (primary and secondary)||£827||£3,583||£866||£3,750||2%|
|Weekly SMP (lower rate)||£139.58||£140.98|