Legal Magazine

HMRC Income Tax Rates 2017

Posted on the 03 May 2017 by Raza Laghari @CertaxFitzrovia

Hmrc income tax rates 2017
The current tax year for 2017 is from the 6th April to the 5th April 2018. The tax rate that you fall in all depend on how much income you get per year. It also included how much of your income falls within each tax year and how much of your income is above your personal allowance. If you do get other income, this may be tax free.

The main standard Personal Allowance is £11,500. This means that you won’t get tax up to this amount per year. If you earn £1 over then that is when you start paying tax. The higher your income is the smaller your personal allowance would be. The personal allowance will start to decrease when your income is over £100,000. If you ear over £123,000 per year then you would get a Personal Allowance. You can get a bigger personal allowance if you can claim for Blind Person’s Allowance or claim for Marriage Allowance.

Here are HMRC Income Tax rates 2017 and bands that the personal allowance and income tax fall in:

(This doesn’t apply to you in you live in Scotland)

  • Personal Allowance – Up to £11,500 – 0% No Tax
  • Basic Rate – £11,501 to £45,000 – 20% Tax Rate
  • Higher Rate – £45,001 to £150,000 – 40% Tax Rate
  • Additional Rate – Over £150,000 – 45% Tax Rate

For people who live in Scotland, your income tax will be paid to the Scottish Government. You will pay different tax compared to the rest of the United Kingdom. The Scottish Income Tax applies to your pensions, wages and mostly any other income that you get. The Personal Allowance is still the same at £11,500.

Here are the Scottish Income Rates and bands that the personal allowance and income tax falls in:

  • Personal Allowance – Up to £11,500 – 0% No Tax
  • Basic Rate – £11,501 to £43,000 – 20% Tax Rate
  • Higher Rate – £43,001 to £150,000 – 40% Tax Rate
  • Additional Rate – over £150,000 – 45% Tax Rate

If you have any savings or dividends allowance then you will have tax-free on savings interest and all dividends if you own shares in a company. If you are employed or have a pension you will need to check your income tax to see how much tax you’ve paid in the current tax year, how much you are likely to pay for the rest of the year and what your tax code and personal allowance you have.

You can pay less Income Tax if you are eligible for them to be able to claim for income Tax reliefs. If you are in a civil partnership or if you are married then you may be able to claim for the marriage allowance to reduce your partners tax if your income is less than the standard Personal Allowance.


Back to Featured Articles on Logo Paperblog

Magazine