Key tax rates

Note all the below are correct at date of press, and are subject to amendment by HMRC. We can accept no liability for decisions taken without first contacting the office to ensure the rates are up to date:

Income Tax and Personal Savings

Income tax 2016/17 2015/16
Basic rate band – income up to £32,000 £31,785
Starting rate for savings income *0% *0%
Basic rate 20% 20%
Dividend ordinary rate **7.5% 0%
Higher rate - income over £32,000 £31,785
Higher rate 40% 40%
Dividend upper rate **32.5% 25%
Additional rate – income over £150,000 £150,000
Additional rate 45% 45%
Dividend additional rate **38.1% 30.6%
Savings rate limit (savings income) *£5,000 *£5,000
For 2016/17 Scottish taxpayers effectively subject to the same income tax rates as rest of UK. *If an individual's taxable non-savings income exceeds the starting rate limit, then the starting rate limit for savings will not be available for savings income. For 2016/17, £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax-free. **For 2016/17 the first £5,000 of dividends are tax-free.


National Insurance Contributions (NICs)

2016/17 Employee
(primary) Employer
(secondary)
Class 1    
Payable on weekly earnings of:    
    Below £112 (lower earnings limit) Nil -
    £112 - £155 (primary threshold) *0% -
    Up to £156 (secondary threshold) - Nil
    Above £156 - 13.8%
    £155.01 - £827 (upper earnings limit) **12% -
    £156.01 - £827 (upper secondary threshold (UST) for
    under 21s) 12% 0%
    £156.01 - £827 (apprentice upper secondary threshold
   (AUST) for under 25s) 12% 0%
    Above £827 **2% -
*No NICs are actually payable but a notional Class 1 NIC is deemed to have been paid; this protects contributory benefit entitlement.
**Over state pension age, the employee contribution is generally nil.
Employment Allowance   Up to £3,000 (per year)
Class 1A On relevant benefits   13.8%
Class 2 Self employed £2.80 per week
  Small profits threshold £5,965 per annum
Class 3 Voluntary £14.10 per week
Class 3A Voluntary contributions may be available to 5 April 2017 in order to obtain extra additional State Pension (maximum £25 a week) - variable contribution rates according to age
Class 4 Self employed on annual profits  
  £8,060 - £43,000 *9%
  Excess over £43,000 *2%
*Exemption applies if state pension age was reached by 6 April 2016.





KNOWLEDGE BASE


Contact us today for a quote

Oliver Phillips

Here at Oliver Phillips, we are dedicated to you and all your different accounting needs.


We have over 17 years experience assisting small and medium businesses, as well as individuals. But, our most important aim is to provide excellent accountancy services at competitive rates. 


Our offices are based near Old Street, in the City of London, and we operate as accountants in London, East London, Essex, and within the M25 area.
 

SOME OF THE BENEFITS YOU WILL ENJOY INCLUDE:

OUR COMPANY AT A GLANCE




At Oliver Phillips, we pride ourselves on excellent customer service. To our clients we can offer:

  • A free no-obligation discussion about your business requirements
  • Competitive accounting fees agreed in advance and not dependent on income level
  • Personal account manager
  • Company formation & Company secretarial services.
  • VAT registrations, advice and completion of returns.
  • Tax planning
  • Company forecasts
  • Book-keeping
  • Accountancy & Management accounts


​We can offer a range of solutions tailored to suit your needs.