Each Autumn the Chancellor of the Exchequer gathers together his budget papers and his red briefcase and announces what changes are in store for the UK economy. And at PayStream we are particularly keen to hear about what these changes entail before planning our development schedule for the first quarter of the tax year. You can see our reaction to the Autumn Statement here but in this article we share with you the new tax rates and thresholds for the UK.
New rates and Threshold for 18/19
The personal allowance will be £11850 per year which equates to you being able to earn £228 per week or £988 per month before paying any PAYE.
Basic rate 20% - £0 - £34,500
Higher tax rate 40% - £34,501 - £150,000
Additional tax rate 45% - >£150,000
Full details on the rates, allowances and duties for the tax year April 2018 to April 2019 can be found here.
Scottish income tax rates and thresholds for 2018/19 payroll
Following the Scottish draft budget on 14 December, details regarding the tax rates and thresholds to apply for Scottish taxpayers during 2018/19 have been provided.
The personal allowance will be the same as the rest of the UK at £11850 per year which equates to you being able to earn £228 per week or £988 per month before paying any PAYE.
Starter rate 19% - £1 - 2,000
Basic rate 20% - £2,001 - 12,150
Intermediate rate 21% - £12,151 - 32,423
Higher rate 41% - £32,424 - 150,000
Top rate 46% - £150,001 and above
The Scottish income tax rates and thresholds are subject to Scottish parliamentary approval so we expect confirmation prior to 6 April 2018.
Full details on the rates, allowances and duties for the tax year for Scotland for April 2018 to April 2019 can be found here.