Rates and allowances

Personal Allowances 2017/18
Single Person £12,500
Jointly Assessed Couple £25,000
Additional Personal Allowance £6,400
Blind Person £2,900
Disabled Person £2,900
Age Allowance £0
Income Tax rates
Standard Rate 10%
Higher Rate 20%
Non-Resident Rate 20%
Standard rate tax thresholds
Single Person £6,500
Married Couple (combined) £13,000
Balance taxable at 20%

Previous years rates and allowances

 11/1212/1313/1414/1515/1616/1717/18
Standard rate 10% 10% 10% 10% 10% 10% 10%
Single person standard rate band 10500 10500 10500 10500 10500 8500 6500
Married couple standard rate band 21000 21000 21000 21000 21000 17000 13000
Higher rate 20% 20% 20% 20% 20% 20% 20%
Non-resident rate 20% 20% 20% 20% 20% 20% 20%
Single allowance 9300 9300 9300 9500 9500 10500 12500
Additional personal allowance* 6400 6400 6400 6400 6400 6400 6400
Blind persons / Disabled persons 2900 2900 2900 2900 2900 2900 2900
Age allowance 2020 2020 2020 1000 1000 1000 0
Non-resident allowance 0 0 0 0 0 0 0
Mortgage and Loan Interest limit** 7500 7500 7500 7500 7500 7500 5000
BIK*** exemption (not car benefit) 400 400 400 400 400 400 400
Nursing expense limit 9300 9300 9300 9300 9300 9300 12500
Educational deed of covenant 5500 5500 5500 5500 5500 5500 5500
Charitable Donations 7000 7000 7000 7000 7000 7000 7000
Private medical insurance limit 1800 1800 1800 1800 1800 1800 1800
Homestay (TT fortnight only) 1500 1500 1500 1500 1800 1800 1800

IMPORTANT NOTE - From 6 April 2012, tax relief for certain general deductions is restricted to 10% for individuals. The general deductions affected are; interest paid on mortgages or loans, charitable donations or deeds of covenant, private medical insurance payments, nursing expenses and educational deeds of covenant entered into on or before 5 April 2011 and where the student is in qualifying full time education at that date. For tax years prior to 2012/13, general deductions were treated as reducing an individual’s taxable income and tax relief was therefore given at the individual’s effective rate of income tax. From 6 April 2012, 10% tax relief for the affected general deductions will be treated as reducing an individual’s total liability.

* Single parent additional allowance

** Mortgage and Loan Interest limit is for a single person, limit is doubled for a jointly assessed couple

*** Benefit in Kind

Interest and Repayment Supplement rates can be found in Practice Note PN 154/09.

Further details and guidance on allowances and reliefs are available in the GN1 return form guide.

For information on VAT see Customs and Excise.

National Insurance Rates and Thresholds

N.B. Rates were correct for the relevant tax year but may since have risen to the highest rate in force.

Item (per week unless stated otherwise)12/1313/1414/1515/1616/1717/18
Lower Earnings Limit, Class 1 (LEL) £107 £109 £111 £112 £112 £113
Upper Accrual Point (UAP) £770 £770 £770 £770 £770 £770
Upper Earnings Limit, Class 1 (UEL) £770 £784 £784 £784 £784 £784
Primary Threshold £118 £120 £120 £120 £118 £118
Secondary Threshold £115 £117 £117 £117 £118 £118
Prescribed annual equivalent of primary thresholds £6,136 £6,240 £6,240 £6,240 £6,136 £6,136
Class 1 employees' primary rate of NI (between primary threshold and UEL) 11% 11% 11% 11% 11% 11%
Class 1 employees' additional rate of NI (above the UEL) 1% 1% 1% 1% 1% 1%
Class 1 employers' rate of NI (on all earnings above secondary threshold) 12.8% 12.8% 12.8% 12.8% 12.8% 12.8%
Employee's contracted-out rebate (COSR schemes only) 1.6% 1.6% 1.6% 1.6% 1.6% 1.6%
Employer's contracted-out rebate, salary related scheme (COSR) 3.7% 3.7% 3.7% 3.7% 3.7% 3.7%
Class 2 rate self-employed £2.65 £2.70 £2.70 £5.40 £5.40 £5.40
Class 2 small earnings exception level (annual) £5,595 £5,725 £5,725 £5,995 £6,136 £6,136
Class 2 rate for volunteer development workers £5.35 £5.45 £5.55 £5.60 £5.60 £5.65
Class 2 for share fishermen £3.30 £3.35 £3.35 £6.70 £6.70 £6.70
Class 3 voluntary contributions £13.25 £13.55 £13.90 £14.10 £14.10 £14.25
Class 4 lower profits limit (annual) £6,136 £6,136 £6,136 £6,136 £6,136 £6,136
Class 4 upper profits limit (annual) £40,040 £40,768 £40,768 £40,768 £40,768 £40,768
Class 4 rate between the lower and upper limits 8% 8% 8% 8% 8% 8%
Class 4 rate above the upper limit 1% 1% 1% 1% 1% 1%
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