2018-19 Tax & National Insurance Rates

2018-19 Personal Tax Allowances & Bands

Allowance % of income / £ allowance p.a.
Basic Rate Tax 20%
Higher Rate Tax 40%
Additional Rate Tax 45%
Dividend Basic Rate 7.5%
Dividend Higher Rate 32.5%
Dividend Additional Rate 38.1%
Basic Rate Tax Band £11,851 to £46,350
Higher Rate Tax Band £46,351 to £150,000
Additional Rate Tax Band > £150,000

 

2018-19 UK Income Tax Rates

Details Rate
Personal Allowance £11,850
Limit for Personal Allowance £100,000 – Personal Allowance reduced by £1 for every £2 above this limit
Marriage Allowance £1,190
Limit for Marriage Allowance £28,000 – Marriage Allowance reduced by £1 for every £2 above this limit
Blind Person’s Allowance £2,390
Dividend Allowance £2,000

 

2018-19 National Insurance Allowances

Band £ per week / annum
Lower Earnings Limit £116 p/w
Primary Threshold (PT) £162 p/w
Secondary Threshold (ST) £162 p/w
Upper Earnings Limit (LEL) £892
Upper Profits Limit (UPL) £456,350
Upper Secondary Threshold for Under 21s £892
Small Profits Threshold (SPT) £6,205
Lower Profits Limit (LPL) £8,424
Employment Allowance £3,000 per employer, per annum
Apprentice Upper Secondary Threshold (AUST) for U25s £892

 

2018-19 National Insurance Rates

Class 1 – Employee Rates

Earnings % of Income
Below LEL : £116 0%
Between LEL and PT : £116 – £162 0%
Between PT and UEL : £162.01 – £892 12%
Above UEL : £892 2%

Class 1 – Employer Rates

Earnings % of Income
Below ST : £162 0%
Above ST : £162 13.8%

 

2018-19 Self-Employed National Insurance Contribution Rates (Class 2 & 4 NIC)

Two types of National Insurance rates apply for those in self-employment or partnership. Class 2 NIC rate applies for any earnings over £6,205 per annum and is payable for each week. Class 4 applies to profits for the whole year and has it’s own brackets:

Band Class 2 £ per week :: Class 4 NIC% of income
Below SPT : £6,205 £0 :: 0%
Between SPT and LPL : £6,205 – £8,424 £2.95 p/w :: 0%
Between LPL and UPL : £8,424- £46,350 £2.95 p/w :: 9%
Above £46,350 £2.95 p/w :: 2%

 

2018-19 Corporation (Limited Company) Tax Rates

Corporation Tax rates are generally a lot lower than traditional self-employed UK Income Tax rates. That being said, recent changes to dividend Tax has made this a little more problematic. It maybe worth that you incorporate as a limited company but a detailed review of your Income Tax circumstances should be carried out whilst forecasting future activities.

That being said, Corporation Tax rates are set to be reduced to 17% by 2020. Until then, the rate is 19%

For advice on this matter it is advised that you contact QuickRebates for a free consultation to see how we can help your needs.

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