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:
| Rate | 2016-2017 | 2017-2018 | 2017-2018 |
| 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.
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