Income Tax Rates

Income Tax Rates:

2015/16 2016/17
Band Rate Band Rate
£ % £ %
0 - 5,000 20* 0 - 5,000 20*
5,001 - 31,785 20 ** 5,001 - 32,000 20 **
31,786 - 150,000 40 *** 32,000 -150,000 40 ***
over £150,000 45 **** over £150,000 45 ****

* Except dividends (7.5% 2016/17, 10% 2015/16) and savings income (0%).
** Except dividends (7.5% 2016/17, 10% 2015/16) 
*** Except dividends (32.5%)
**** Except dividends 38.1% (37.5% 2015/16).

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.