Tax Rates

Tax Rates

Income tax rates

The table below shows the tax rates you pay in each band if you have a standard Personal Allowance for 2017/18:

 

Band

Rate

Income after allowances
2017 to 2018

 

 

 

 

 

 

 

 

 

Basic rate in Scotland

20%

Up to £31,500

 

 

 

Basic rate in rest of UK

20%

Up to £33,500

 

 

 

Higher rate in Scotland

40%

£31,501 to £150,000

 

 

 

Higher rate in rest of UK

40%

£33,501 to £150,000

 

 

 

Additional rate

45%

Over £150,001

 

 

 

 

 

 

Personal Allowance Rates

This is the amount of income you can receive each year before income tax is calculated. Until you reach the State pension age the personal allowance thresholds are:

Financial Year

Earnings Threshold

 

 

2016-17

£11,000

2017-18

£11,500

More information on all of the above rates can be found on the HRMC website http://www.hmrc.gov.uk/.

National Insurance Rates

National Insurance contributions are paid by employees to build up their entitlement to certain state benefits, including the State Pension. Contributions paid are dependent upon earnings:

Earnings Per Month

Percentage Paid

Additional Contribution

£680-3750

12%

 

over £3,750

 

2%

Payment of contributions cease when State Pension is reached.