Tax Rates & Dates

Some useful information regarding tax rates, key dates, tax codes and minimum wages is provided below for your reference.
 

  • Key Dates
  • Tax Codes
  • Minimum Wages

More rates can be found at www.hmrc.gov.uk/rates/index.htm

Budget 2018 Tax Rates and Allowances


  2018/19 (£) 2017/18 (£)
Income Tax Rates (non-dividend income)
Lower rate tax – savings rate only 0% up to 5,000 0% up to 5,000
20% basic rate tax up to 34,500 up to 33,500
40% higher rate tax 34,501-150,000 33,501-150,000
45% additional rate tax Above 150,000 Above 150,000
Marriage Allowance 1,185 1,150
Lower rate tax applies to savings income only and will not apply if non-savings income exceeds threshold.
Income Tax Rates (dividend income)
7.5% rate 2,001 to 34,500 5,001 – 33,500
32.5% higher dividend rate 34,501 – 150,000 33,501 – 150,000
38.1% higher dividend rate Above 150,000 Above 150,000
Personal Allowances
Personal allowance 11,850 11,500
Rent-a-room relief 7,500 7,500
Savings Allowance 1,000 1,000

Budget 2018 National Insurance

  2018/19 (£) 2017/18 (£)
National Insurance – the Employment Allowance is £3,000 to set against employer’s Class 1 NIC
Lower earnings limit, primary Class 1 (per week) 116 113
Upper earnings limit, primary Class 1 (per week) 892 866
Primary threshold (per week) 162 157
Secondary threshold (per week) 162 157
Employee’s primary Class 1 rate between primary threshold and upper earnings limit 12% 12%
Employee’s primary Class 1 rate above upper earnings limit 2% 2%
Married woman’s reduced rate between primary threshold and upper earnings limit 5.85% 5.85%
Married woman’s rate above upper earnings limit 2% 2%
Employer’s secondary Class 1 rate above secondary threshold 13.80% 13.80%
Class 2 rate (per week) 2.95 2.85
Class 2 small profits threshold (per year) 6,205 6,025
Class 3 rate (per week) 14.65 14.25
Class 4 lower profits limit 8,424 8,164
Class 4 upper profits limit 46,350 45,000
Class 4 rate between lower profits limit and upper profits limit 9% 9%
Class 4 rate above upper profits limit 2% 2%
  2018/19 (£) 2017/18 (£)
State Pension
New State Pension 164.35 159.55
Category A or B basic pension 125.95 122.30
Category B basic pension (lower) – husband’s insurance 75.50 73.30
Category C or D – non-contributory 75.50 73.30
Pension Credit
Standard minimum guarantee – single 163.00 159.35
Standard minimum guarantee – couple 248.80 243.25
Pensions
Annual allowance 40,000 40,000
Lifetime allowance 1,030,000 1,000,000

  2018/19 (£) 2017/18 (£)
Individual Savings Account (ISA)
Individuals aged 50 years old or above during tax year
total maximum investment 20,000 20,000
maximum cash element of ISA 20,000 20,000
Junior ISA investment limit 4,260 4,128
Capital Gains Tax
Rate – basic rate tax payer 10% 10%
Higher rate tax payer 20% 20%
Individuals exempt limit 11,700 11,300
Other trusts 5,850 5,650
  2018/19 (£) 2017/18 (£)
Inheritance Tax
Single persons nil rate band 1-325,000 1-325,000
Single persons 40% band over 325,000 over 325,000
Married couples or civil partnerships allowance nil rate band 900,000 650,000
Overseas domiciled spouse exemption 325,000 325,000
Gifts to charities exempt exempt
Small gifts to same person 250 250
Marriage/civil partnership gifts by:
Parent 5,000 5,000
Grandparent/party 2,500 2,500
Other person 1,000 1,000
A reduced rate of IHT of 36% applies where 10% or more of the net estate is left to charity.
  2018/19 (£) 2017/18 (£)
Business Property Relief
Business or interest in a business and transfer if unquoted shareholdings 100% 100%
Corporation Tax
Normal main rate 19% 19%
Capital Allowances
Main writing down allowance 18% 18%
Special rate writing down allowance 8% 8%
Annual Investment Allowance, subject to change 200,000 200,000
First year allowances for certain energy-saving/water efficient products 100% 100%
VAT
Standard rate 20% 20%
Registration threshold 85,000 85,000
Deregistration threshold 83,000 83,000
Cash accounting scheme upper limit 1,350,000 1,350,000
Annual accounting scheme upper limit 1,350,000 1,350,000
Flat rate scheme upper limit 150,000 150,000

Key Dates

HMRC, Companies House and FSA impose various penalties and interest for lateness and inaccuracies.
 

Payroll Deadlines

05 April – Last day of tax year
19 April – Last date to submit EPS reports under RTI
31 May – P60s due to employees
06 July – P11D, P9D, P11D(b) forms due to HMRC and copies to employees as required
19 July – Class 1A NIC due for year-end 05 April
19 October – Class 1B NIC due for year end 05 April
 

VAT Deadlines

Quarter end date – one month and seven days to submit online return and send cleared payment
 

Self Assessment Deadlines

For individuals, sole traders and partnerships

31 July 2018 – second payment on account for 2017/2018
31 October 2018 – submission of paper tax return
31 January 2019 – submission of online return
31 January 2019 – First payment on account for 2018/2019 and any balance due for 2017/2018
 

Limited Company Deadlines

Within 9 months of year-end date – file company tax return online and pay corporation tax

Once a year – submit Company Annual Return to Companies House (officers and shareholders details)
 

Charity Deadlines

Registered charity – Trustees Annual Report to Charity Commission within 10 months of year end

Incorporated charity – submit accounts within 9 months of year end (and pay corporation tax if applicable)
 

Clubs and Association Deadlines

Registered with FSA – FSA return within 7 months of year end

Tax Codes

BR – earnings taxed at base rate, currently 20%

0T – no personal allowance, taxed at the appropriate rates

D0 – earnings taxed at higher rate, currently 40%

D1 – earnings taxed at second higher rate, currently 45%

NT – no tax is deducted from earnings

L – amount of personal allowance

M – marriage allowance – have received a transfer of 10% of your partner’ personal allowance.

N – marriage allowance – you have transferred 10% of your personal allowance to your partner.

S – Scottish rate of income tax.

T – temporary code

Y – maximum personal allowance for those born before 6 April 1938

K – followed by a number which is the amount to add to earnings to work out taxable pay

 

National Living Wage – from 1st April 2018

25 and over £7.83 per hour

 

National Minimum Wage from 1st April 2018

Aged 21 to 24 – £7.38 per hour

Aged 18 to 20 – £5.90 per hour

Aged under 18 – £4.20 per hour

Apprentice – £3.70 per hour