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Tax Changes for 2017/18 Update

Further to our previous notification of  tax bandwidths for 2017/18 and also changes to the Scottish Rate bandwidths.
The tables below provides examples of what it means for you.
UK Income Tax rates (if your main residence is out with Scotland). Example based on having a standard Personal Allowance of £11,500.

UK Income Tax rates

Band

Taxable income

Tax rate

Personal Allowance

Up to £11,500

0%

Basic rate

£11,501 to £45,000

20%

Higher rate

£45,001 to £150,000

40%

Additional rate

over £150,000

45%

Scottish Income Tax rates (if your main residence is in Scotland). Example based on having a Personal Allowance of £11,500. (You don’t get a Personal Allowance if you pay additional rate tax).

Band

Taxable income

Tax rate

Personal Allowance

Up to £11,500

0%

Basic rate

£11,501 to £43,000

20%

Higher rate

£43,001 to £150,000

40%

Additional rate

over £150,000

45%

Further information on income Tax rates and Personal Allowances can be found on the Gov.uk website: Income Tax rates and Personal Allowances - GOV.UK
If you have an enquiry regarding your personal tax please contact HMRC on 0300 200 3300

For 2017 to 2018 the basic Personal Allowance will be £11,500 and the basic rate limit will be £33,500. However, for Scottish tax-payers the basic rate limit will be £31,930.
The new threshold (starting point) for PAYE is £221 per week (£958 per month).
The new emergency tax code is 1150L for all employees.
Income Tax rates and bandwidths are:

   UK Rate %              Bandwith Scottish Rate            %             Bandwith
   Basic Rate 20% £1 to £33,500             Basic Rate 20% £1 to £31,930
   Higher Rate 40% £33,501 to £150,000                            Higher Rate 40% £31,931 to £150,000
   Additional Rate           45% £150,001 and above               Additional Rate 45% £150,001 and above

If you have an enquiry regarding personal tax please contact HMRC on 0300 200 3300 or visit:
www.gov.uk/income-tax

 

Link to Scottish Government Website