UMBRELLA ACCOUNTANTS IS THE OBVIOUS CHOICE FOR CONTRACTORS WHO WANT TO MAXIMISE THEIR INCOME WITH SIMPLE, LOW COST, FIXED FEE ACCOUNTANCY SOLUTIONS
Tax Factsheet
Check here for the latest tax information changed as and when the relevant legislation changes
Are you a public sector contractor? Find out how the April legislation changes will affect you and what to do next.
Income Tax
| Bands | 2016/17 | 2017/18 |
|---|---|---|
| Basic Rate 20% | £0-£32,000 | £0-£33,500 |
| Higher Rate 40% | £32,001-£150,000 | £33,500-£150,000 |
| Additional Rate 45% | Over £150,000 | Over £150,000 |
Personal allowances
| Personal allowances | 2016/17 | 2017/18 |
|---|---|---|
| Personal allowance | £11,000 | £11,500 |
| Income limit for personal allowance | £100,000 | £100,000 |
| Blind person's allowance | £2,290 | £2,230 |
| Income limit for married couples | £27,700 | £28,000 |
Class 1 NICs: thresholds
| Class 1 NICs thresholds | Figures to use 2016/17 | Figures to use 2017/18 |
|---|---|---|
| Lower earnings limit (LEL) | £112 per week £485.33 per month £5,824 per year | £113 per week £489.66 per month £5,876 per year |
| Primary Threshold (PT) | £155 per week £671.66 per month £8,060 per year | £157 per week £680.33 per month £8,164 per year |
| Secondary Threshold (ST) | £156 per week £676 per month £8,112 per year | £157 per week £680.33 per month £8,164 per year |
| Upper earnings limit (UEL) | £827 per week £3,583.66 per month £43,004 per year | £866 per week £3,752.66 per month £45,032 per year |
Class 1 NICs: rates for employee (primary) contributions
NICs deductions should not be made on earnings below the Lower Earnings Limit (LEL)
| NICs category letter | Earnings at or above LEL up to and including PT | Earnings above the PT up to and including UAP | Earnings above UAP up to and including UEL | Balance of earnings above UEL |
|---|---|---|---|---|
| A | 0% | 12% | 12% | 2% |
| B | 0% | 5.85% | 5.85% | 2% |
| C | NIL | NIL | NIL | NIL |
| D | 0% | 10.60% | 12% | 2% |
| E | 0% | 5.85% | 5.85% | 2% |
| J | 0% | 2% | 2% | 2% |
| L | 1.4% rebate | 2% | 2% | 2% |
I would like to take the opportunity to thank you for all your support through these tough times I'm experiencing. Having you as one my support has really helped relieve a lot of my stress. I'm so glad this HMRC stuff is now all behind me and when I do get better I will be sure to be a Umbrella client if I'm going down the self employment route. If your still around it would be nice to hear you have been promoted, you should be Neil Armitages right hand woman. You've been helpful, friendly, efficient and just brilliant! Thank you so so so so much you've been the best Accountant ever!
S Hall October 2017
