| Income tax allowances | Year 2017 to 2018 | Year 2018 to 2019 |
|---|---|---|
| Personal allowance for people born after April 1948 (1) | £11,500 | £11,850 |
| Income limit for Personal allowance | £100,000 | £100,000 |
| Maximum amount of Married Couple's Allowance (born before 6th April 1935) (2) (3) | £8,455 | £8,695 |
| Minimum amount of married couple's allowance (born before 6th April 1935) | £3,260 | £3.360 |
| Married allowance | £1,150 | £1,185 |
| Blind person's allowance | £2,320 | £2,390 |
- The Personal Allowance reduces where the income is above £100,000 - by £1 for every £2 of income above the £100,000 limit, This reduction applies irrespective of age or date of birth.
|
Income tax rate for the year |
Starting Rate 20% |
Basic Rate 40% |
Higher Rate 45% |
|---|---|---|---|
| 2018 - 2019 | From £0 to £34,500 | From £34,501 to £150,000 | Over £150,000 |
|
Income tax rate for the year |
Starting Rate 20% |
Basic Rate 40% |
Higher Rate 45% |
|---|---|---|---|
| 2017 - 2018 | From £0 to £33,500 | From £33,501 to £150,000 | Over £150,000 |
A Guide To Tax Codes
What are tax codes?Tax codes are usually made up of one letter and several numbers, for example: 1185L or K497
If your tax code is a number followed by a letter
If you multiply the number in your tax code by 10, you'll get the total amount of income you can earn in a year before paying any tax,
The letter shows how the number should be adjusted following any changes to allowances announced by the Chancellor, common tax code letters are explained below
| Code | Reason for use |
|---|---|
| L | for those eligible for the basic personal allowance |
| P | for persons aged 65 to 74 and eligible for the full personal allowance |
| V | for persons aged 65 to 74, eligible for the full personal allowance and the full married couple's allowance (for those born before 6 April 1935 and aged under 75) and estimated to be liable at the basic rate of tax |
| Y | for persons aged 75 or over and eligible for the full personal allowance |
| T | if there are any other items HM Revenue & Customs (HMRC) needs to review in your tax code |
| K | when your total allowances are less than your total 'deductions' |
Other tax codes
If your tax code has two letters but no number, or is the letter 'D' followed by a zero, it
normally indicates that you have two or more sources of income and that all of your allowances have been applied to the tax code and income from your main job.
| Code | Reason for use |
|---|---|
| BR | Is used when all your income is taxed at the basic rate of 20% (currently 20%) BR tax code is most commonly used for a second job) |
| DO | Is used when all your income is taxed at the higher rate of tax (currently 40%) DO tax code is most commonly used for a second job) |
| NT | Is used when no tax is to be taken from your income or pension |
National Minimum Wage Rates
There are currently four different national minimum wage rates and an apprentice
rate. The per hour rates that apply from April 2018 are as follows:
| Rate | Age |
|---|---|
| £7.83 | for workers aged 25 years and over |
| £7.38 | for workers aged 21 to 24 |
| £5.90 | for workers aged 18 to 20 |
| £4.20 | for workers under 18 |
| £3.70 | for apprentices |
Apprentices aged 19 or over who have completed at least one year of their apprenticeship are entitled to receive the full national minimum wage rate.
