Tax Rates & Thresholds 2018/2019

As we approach the busiest time of year in the financial calendar, we provide a reminder of the key rates and thresholds applicable to those working in England and Northern Ireland.

PAYE Tax Rates and Thresholds

Employee personal allowance £227.88 per week
£987.50 per month
£11,850 per year
Basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £46,350
Higher tax rate 40% on annual earnings from £46,351 to £150,000
Additional tax rate 45% on annual earnings above £150,000

 

INCOME LIMITS FOR TAPERING

The amount of gross income you can have before your personal allowance is reduced.

Income Limit (Born after 5 April 1948) £100,000
Income Limit (Born before 6 April 1948) * £29,600

 

Class 1 National Insurance Thresholds

You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL).

LEL £116 per week
Primary Threshold (PT) £162 per week
Secondary Threshold (ST) £162 per week
Upper Secondary Threshold (under 21) (UST) £892 per week
Apprentice Upper Secondary Threshold (apprentice under 25) (AUST) £892 per week
Upper Earnings Limit (UEL) £892 per week

 

Class 1 National Insurance Rates (Employee contribution rates)

These are deducted from an employee’s pay via PAYE.

National Insurance category letter Earnings at or above LEL up to and including PT Earnings above the PT up to and including UEL Balance of earnings above UEL
A 0% 12% 2%
B 0% 5.85% 2%
C nil nil nil
H (Apprentice under 25) 0% 12% 2%
J 0% 2% 2%
M (under 21) 0% 12% 2%
Z (under 21 – deferment) 0% 2% 2%

 

Class 1 National Insurance Rates (Employer contribution rates)

Paid to HMRC as part of your PAYE bill.

National Insurance category letter Earnings at or above LEL up to and including ST Earnings above ST up to and including UEL/UST/AUST Balance of earnings above UEL/UST/AUST
A 0% 13.80% 13.80%
B 0% 13.80% 13.80%
C 0% 13.80% 13.80%
H (Apprentice under 25) 0% 0% 13.80%
J 0% 13.80% 13.80%
M (under 21) 0% 0% 13.80%
Z (under 21 – deferment) 0% 0% 13.80%

 

Self Employed Class 2 and Class 4 NICs

Class 4 Lower Profits Limit (Annual) £8,424
Class 4 Upper Profits Limit (Annual) £46,350
Class 4 Rate Between Lower and Upper Profits 9%
Class 4 Rate Above Upper Profits 2%
Class 2 Earnings Exception Limit £6,205
Class 2 Weekly Amount £2.95
Class 2 Weekly Amount (Share Fisherman) £3.60
Class 2 Weekly Amount (Volunteer Development Workers) £5.80

 

DIVIDEND TAX BANDS AND PERCENTAGES

You only pay tax on dividends that go above your dividend allowance in the tax year. The allowance for 2018/2019 is £2,000.

Band Limits Percentage
Basic Rate £0 – £34,500 7.5%
Higher Rate £34,501- £150,000 32.5%
Additional/Top Rate Over £150,000 38.1%

 

Corporation Tax Rates and Limits

Main Rate 19%

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Sources:
https://www.uktaxcalculators.co.uk/tax-rates/2018-2019/
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2019-to-2020#tax-thresholds-rates-and-codes

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