Changes to tax codes and personal allowance are as follows:
From 6th April 2017, the personal allowance will go up to £11,500.
As for tax codes, here is the latest update:
- Tax code ending in L add 50 to obtain the current tax code (i.e. 1100L will become 1150L
- Tax code ending in N ( you will need to add 45)
- Tax code ending in M (You will need to add 55)
Income tax rates:
|Rest of UK||Scotland|
|20%||0 – 32,000||0 – 33,500||0 – 31,500|
|40%||32,001 – 150,000||33,501 – 150,000||31,501 – 150,000|
|45%||Over 150,000||Over 150,000||Over 150,000|
Other points to note:
- Employment allowance of £3,000
If you are the only director /employee in the Ltd company paid above the secondary threshold, the restriction still applies – you won’t be able to claim the empowerment allowance.