Autumn Statement 2015 – Personal Allowances & NI Rates

November 26th, 2015

Main income tax allowances and rates

Data published as at 25 November 2015

  2015/16 £ 2016/17 £
Personal allowance 10,600 11,000
Personal allowance reduced by £1 for every £2 of total net adjusted income exceeds 100,000 100,000
Transferable tax allowance for married couples/civil partners where there is no entitlement to married couple’s allowance and where neither spouse/civil partner pays more than basic rate tax 1,060 1,100
Personal savings allowance: basic rate taxpayers n/a 1,000
Personal savings allowance: higher rate taxpayers n/a 500
Blind person’s allowance 2,290 2,290
Child benefit charge: 1% of benefit for each £100 of adjusted net income between 50,000-60,000
Age-related allowances
Personal if born before 6/4/38* 10,660 n/a
Married couple’s/civil partners allowance at 10% – minimum* 3,220 3,220
Married couple’s/civil partners allowance at 10%   – maximum* 8,355 8,355

*Where at least one spouse/civil partner was born before 6 April 1935.

 

Income tax rates and bands

2015/16 2016/17
0% starting rate on savings income up to** £5,000 £5,000
Basic rate of 20% on income up to £31,785 £32,000
Maximum tax at basic rate £6,357 £6,400
Higher rate of 40% on income between £31,786 –£150,000 £32,001 – £150,000
Tax on first £150,000 £53,643 £53,600
Additional rate on income over £150,000 45% 45%
Dividend allowance n/a £5,000
Dividend tax credit 10% n/a
Dividends: ordinary rateordinary rate above allowance 10%n/a n/a7.5%
Dividends: upper rateupper rate above allowance 32.5%n/a n/a32.5%
Dividends: additional rateadditional rate above allowance 37.5%n/a n/a38.1%
**Not available if taxable non-savings income exceeds the starting rate band.

 

National Insurance Contributions

Class 1 Employee
2015/16 2016/17
Employee* Employer Employee* Employer
NIC rate 12% 13.8% 12% 13.8%
No NICs on the first £155 pw £156 pw £155 pw £156 pw
NICs charged up to £815 pw No ceiling £827 pw No ceiling
NIC on earnings over £815 pw 2% N/A £827 pw 2% N/A

 

Employment allowance 2015/16 2016/17
Deduction from Class 1 employer’s NICs £2,000 per employer £3,000 per employer^
^ Not available where director is sole employee
Contracted out S2P rebate 2015/16 2016/17
Reduction on band earnings £112.01 – £770 pw n/a
Employer rate reduction 3.4% n/a
Employee rate reduction 1.4% n/a

 

Class 1A Employer 2015/16 2016/17
Most taxable benefits: 13.8% 13.8%

 

Limits and Thresholds 2015/16 2016/17
Weekly Weekly
Lower earnings limit £112 £112
Primary earnings threshold £155 £155
Secondary earnings threshold £156 £156
Upper earnings limit £815 £827
Upper secondary threshold for under 21s £815 £827

 

Self-employed 2015/16 2016/17
Class 2*
Flat rateProfits threshold £2.80 pw £145.60 pa£5,965 pa £2.80 pw £145.60 pa£5,965 pa
Class 4*
On profits £8,060 –£42,385 pa: 9%Over £42,385 pa:     2% £8,060 –£43,000 pa: 9%Over £43,000 pa:     2%
Voluntary
Class 3 Flat rate £14.10 pw £733.20 pa £14.10 pw £733.20 pa
*Unless over state pension age on 6 April