Income Tax & Thresholds
We will discuss the extension of class 2 national insurance in our next blog, but for now we’ll explain the new tax allowance and class 4 national insurance rates.
The personal allowance will increase in April 2018 to £11,850. This is an increase of £350 per year compared to 2017/18.
The basic rate band will also increase to £46,350.
The additional rate band of 45% remains at earnings in excess of £150,000.
The National Insurance lower earning limit is now £6,032 per year with the primary threshold increasing to £8,424 and the upper threshold being £46,350, in line with the higher rate tax band.
If you would like further guidance please contact the office on 01530 414 285.