Tax Card 2018/2019

Income Tax

Income Tax Rates
2018-2019
%
2017-2018
%
2016-2017
%
2015-2016
%
Starting rate for savings
0
0
0
0
Basic tax rate
20
20
20
20
Higher tax rate
40
40
40
40
Additional tax rate
45
45
45
45
Allowance for tax-free dividends
£2,000
£5,000
£5,000
-
Tax on dividends at Basic Effective Rate
7.5
7.5
7.5
10
Tax on dividends at Higher Effective Rate
32.5
32.5
32.5
32.5
Tax on dividends at Additional Effective Rate
38.1
38.1
38.1
37.5
Starting rate band for savings
£0 -
£5,000
£0 -
£5,000
£0 -
£5,000
£0 -
£5,000
Basic rate band 20%
£0 -
£34,500
£0 -
£33,500
£0 -
£32,000
£0 -
£31,785
Higher rate band 40%
£34,501 to £150,000
£33,501 to £150,000
£32,001 to £150,000
£31,786 to £150,000
Additional rate band 45%
Over £150,001
Over £150,001
Over £150,001
Over £150,001

Personal Allowances

Personal allowances
2018-2019
 
2017-2018
 
2016-2017
 
2015-2016
 
Standard payroll tax code
1185L
1150L
1100L
1060L
Personal allowance (1)
£11,850
£11,500
£11,000
£10,600
Income limit for Personal Allowance
£100,0000
£100,0000
£100,0000
£100,0000
Max Married Couples Allowance
£8,445
£8,445
£8,355
£8,355
Min Married Couples Allowance
£3,260
£3,260
£3,220
£3,220
Income limit for Married Couples Allowance
£28,800
£28,000
£27,700
£27,700
Blind person's allowance
£2,390
£2,320
£2,290
£2,290
Dividend allowance (3)
£2,000
£5,000
£5,000
–
Personal Savings Allowance (Basic Rate Taxpayer)
£1,000
£1,000
£1,000
–
Personal Savings Allowance (Higher Rat Taxpayer)
£500
£500
£500
–
Individual Saving Account (ISA) - Overall annual limit
£20,00
£20,000
£15,240
£15,240
Individual Saving Account (ISA) - Junior account limit
£4,260
£4,128
£4,080
£4,080
Personal Annual Pension Allowance 100% of salary up to:
£40,000
£40,000
£40,000
£40,000
Permitted pension contributions (irrespective of salary)
£3,600
£3,600
£3,600
£3,6000
 
Note 1: Where income is above £100,000 the Personal Allowance reduces by £1 for every £2 of income above the £100,000 limit. It can go down to zero. This reduction applies to all people irrespective of age or date of birth.
Note 2: The Married Couples allowances applies to those born before 6 April 1935. The allowance reduces by £1 for every £2 of income above the specified income limit of £27,700, but never falls below the minimum amount specified above. Tax relief for the Married Couples Allowance is given at 10%
Note 3: From April 2016, the dividend tax credit system was withdrawn. Instead, individuals will be given an annual tax-free allowance.
 
State Pension
2018-2019
 
2017-2018
 
2016-2017
 
2015-2016
 
Old State Pension - Single allowance
£125.95
£122.30
£119.30
£115.95
Old State Pension - Married couple
£201.45
£195.60
£190.80
£185.45
New State Pension (applies to those reaching retirement age after 5 April 2016)
£164.35
£159.55
£155.65
–

Key Dates

Key dates in 2018/19 for personal Self Assessment tax payers
31 January 2018 Deadline for submitting online your 2016/2017 self assessment tax return. It is also the date by which the tax payer will be required to settle the 2016/2017 balancing payment and make the first payment on account in respect of 2017/2018.
31 July 2018 The date by which the second payment on account in respect of 2017/2018 must be paid. Consider reducing POA's if last year's income has dropped.
31 October 2018 Deadline for submission to HMRC of a paper tax return for 2017/2018.
5 October 2018 Deadline for notifying HMRC of new sources of income unless a 2017/2018 tax return has already been issued. Complete form CWF1 for self employment, form SA1 for non self-employed income, or form SA401 for partners.
30 December 2018 Deadline for e-filing the tax return where the tax payer requires the 2017/2018 balancing payment to be collected through next year’s tax code (less than £2,000).
31 January 2019 Deadline for submitting online your 2017/2018 self assessment tax return. It is also the date by which the tax payer will be required to settle the 2017/2018 balancing payment and make the first payment on account in respect of 2018/2018.

Capital Gains Tax

Capital Gains Tax
2018-2019
£
2017-2018
£
2016-2017
£
2015-2016
£
Annual exempt amount:
 
 
 
 
 - Individuals etc
£11,700
£11,300
£11,100
£11,100
 - Other Trustee
£5,850
£5,650
£5,550
£5,550
 - Taxed at Standard Rate
10%
10%
10%
18%
 - Taxed at Higher Rate
20%
20%
20%
28%

From 5 April 2016, certain residential properties may attract a higher rate of capital gains tax.
Entrepreneur's Relief available at 10%.

Inheritance Tax

Inheritance Tax
2018-19
£
2017-18
£
2016-17
£
2015-16
£
 No tax charge arises up to:
£325,000
£325,000
£325,000
£325,000
Taxed above £325,000 at:
40%
40%
40%
40%
Lifetime transfers to most trusts:
20%
20%
20%
20%
Main exempt lifetime gifts
 
 
 
 
Small gifts (per recipient):
£250
£250
£250
£250
Parent's gift on marriage:
£5,000
£5,000
£5,000
£5,000
Grandparent's gift on marriage:
£2,500
£2,500
£2,500
£2,5000
Gifts (per donor):
£3,000
£3,000
£3,000
£3,000

Each individual has a tax-free gift allowance of £3,000 per annum. This means that a donor can give £3,000 in any one tax year without tax implications. Anything larger than £3,000 will be considered a ‘Potentially Exempt Transfer’ (PET) and may be subject to inheritance tax should the donor fail to survive seven years from the date the gift is made.

Tapering relief is given in respect of gifts made between three and seven years before death.
The main 40% IHT rate is reduced to 36% if at least 10% of relevant estate is left to charity.

Stamp Duty

Stamp Duty
Residential*
Non-residential**
 
Band
Rate
Band
Rate
 
£0 - £125,000
0%
£0 - £150,000
0%
 
£125,001 - £250,000
2%
£150,001 - £250,000
2%
 
£250,000 - £925,000
5%
Over £250,000
5%
 
£925,001 - £150,000
10%
–
–
 
£150,001 and over
12%
–
–

* Residential: Payable on consideration which falls in each bracket.
** Non-residential:Payable on total consideration once limit is breached.

National Insurance Contributions

National Insurance
Class 1
2018-2019
£
2017-2018
£
2016-2017
£
Class 1
Men over 65, Women over 60, and children under 16 do not pay Class 1 contributions.
 
 
 
Employee's Earnings Limits
Weekly - Monthly - Yearly
Weekly - Monthly - Yearly
Weekly - Monthly - Yearly
- Lower earnings limit (LEL)
The minimum level of earnings employees need to qualify for benefit including State Pension.
£116 - £503 - £6,032
£113 - £490 - £5,876
£112 - £486 - £5,824
- Primary threshold (PT)
The level of earnings above which employees Class 1 contributions become payable.
£162 - £702 - £8,424
£157 - £680 - £8,164
£155 - £672 - £8,060
- Secondary threshold (ST)
The level of earnings above which employers Class 1 contributions become payable.
£162 - £702 - £8,424
£157 - £680 - £8,164
£156 - £676 - £8,112
- Upper earnings limit (UEL)
Employees do not pay Class 1 contributions above this level.
£892 - £3,863 - £46,350
£866 - £3,753 - £45,032
£827 - £3,583 - £43,000
 
Employer's Allowance
£3,000
£3,000
£3,000
 
Employee's Class 1 NI rates
 
 
 
- Primary rate from PT to UEL
12%
12%
12%
- Above UEL
2%
2%
2%
 
Employer's Class 1 NI rates
 
 
 
- Primary rate above ST
13.8%
13.8%
13.8%
 
Employer's Class 1A NI rates on B-I-K
13.8%
13.8%
13.8%

National Insurance Class 2
2018-2019
£
2017-2018
£
2016-2017
£
2015-2016
£
Self-employed National Insurance
 
 
 
 
- on annual earnings over
n/a
£6,025
£5,965
£5,965
- weekly contribution
n/a
£2.85
£2.80
£2.80
- annual contribution
n/a
£148.20
£145.60
£145.60

National Insurance Class 3
2018-2019
£
2017-2018
£
2016-2017
£
2015-2016
£
Voluntary contributions:
 
 
 
 
- weekly contribution
£14.65
£14.65
£14.10
£14.10
- annual contribution
£761.80
£761.80
£733.20
£733.20

National Insurance Class 4
2018-2019
£
2017-2018
£
2016-2017
£
2015-2016
£
Self-employed National Insurance on taxable profits between:
 
 
 
 
- Lower limit (LL)
£8,424
£8,164
£8,060
£8,060
- Upper limit (UL)
£46,350
£45,000
£43,000
£42,385
- Rate applied to earnings above LL to UL
9%
9%
9%
9%
- Rate applied to earnings above UL
2%
2%
2%
2%
- Maximum payable
£3,413.34 + 2%
£3,315.24 + 2%
£3,144.60 + 2%
£3,089.25 + 2%

The Authorised Mileage Rates

Mileage Rates to be used for privately owned vehicles from 6th April 2011
First 10,000 miles
Above 10,000 miles
  Cars and vans
45p
25p
  Motorcycles
24p
24p
  Cycles
20p
20p
Mileage Rates to be used for privately owned vehicles before 5th April 2011
First 10,000 miles
Above 10,000 miles
  Cars and vans
40p
25p
  Motorcycles
24p
24p
  Cycles
20p
20p

Compulsory registration for VAT

VAT thresholds and limits
Registration
threshold
Deregistration
limit
 from 1 April 2018
£85,000
£83,000
 01.04.17 to 31.03.18
£85,000
£83,000
 01.04.16 to 31.03.17
£83,000
£81,000
 01.04.15 to 31.03.16
£82,000
£80,000
 01.04.14 to 31.03.15
£81,000
£79,000
 01.04.13 to 31.03.14
£79,000
£77,000
 01.04.12 to 31.03.13
£77,000
£75,000
 01.04.11 to 31.03.12
£73,000
£71,000

Van Benefits

Van Benefits
2018-2019
2017-2018
2016-2017
2015-2016
         
Van Benefit
£3,350
£3,230
£3,170
£3,150
Fuel Benefit
£633
£610
£598
£594

Corporation Tax

Corporation Tax
2018-2019
£
2017-2018
£
2016-2017
£
2015-2016
£
Main rate:
19%
19%
20%
20%
Loans to participators
32.5%
32.5%
32.5%
25.0%

 

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