Income Tax Rates

Income Tax Rates:

2017/18 2016/17
Band Rate Band Rate
£ % £ %
0 - 5,000 20* 0 - 5,000 20*
5,001 - 33,500 20 ** 5,001 - 32,000 20 **
33,500 - 150,000 40 *** 32,001 -150,000 40 ***
over £150,000 45 **** over £150,000 45 ****

* Except dividends 7.5% 
** Except dividends 7.5% 
*** Except dividends 32.5%
**** Except dividends 38.1% 

Income other than savings or dividend income taxed first, then savings income and finally dividends. 

From 6th April 2016, the dividend tax credit is abolished and the first £5,000 of dividends per tax year are effectively tax free but still use up basic rate/higher rate bands.

From 6th April 2016, the Personal Savings Allowance will not pay tax on the first £1,000 of interest received for higher rate taxpayers or £500 for higher rate taxpayers.  Additional rate taxpayers will not receive the Personal Savings Allowance

To find out how Chapman Robinson & Moore can help your business either call 01865 379272, or click here to arrange a free Confidential Business Analysis.