Tax rates – 4 Business guide to various tax rates 2018/19Business 4th May 20184th May 2018Income tax allowancesPersonal allowance 11,850Income limit for personal allowance 100,000Marriage allowance 1,185Married couple’s allowance 8,695Trading allowance 1,000Property income allowance 1,000 Dividend allowance 2,000Personal savings allowances for: Basic rate taxpayers 1,000Higher rate taxpayers 500Income tax bands Basic rate 0 – 34,500Higher rate 34,501 – 150,000Additional rate 150,000 + Income tax ratesBasic rate 20%Higher rate 40%Additional rate 45%Dividend ordinary rate 7.5%Dividend upper rate 32.5%Dividend additional rate 38.1%National insurance Class 1 primary (weekly)0 – 162 Nil / 162 – 892 12% / 892 + 2%Class 1 secondary (weekly)0 – 162 Nil / 162 + 13.8%Class 2 (annually)0 – 6,205 Nil / 6,205 + £2.95 weekClass 4 (annually)0 – 8,424 Nil / 8,424 – 46,350 9% / 46,350 + 2%Capital gains taxAnnual exempt amount 11,700General trust exempt amount 5,850 RatesStandard rate 10%Higher rate 20%Trustees’ rate 20%Gains on residential property and carried interest 18% / 28%Gains eligible for entrepreneurs’ relief 10%Inheritance tax Nil rate band 325,000Residence nil rate band 125,000Tax rate on excess 40%Tax rate for chargeable lifetime transfers 20%Corporation tax FY 2018 19%Mileage allowances Cars and vansFirst 10,000 miles 45p / mileOver 10,000 miles 25p / mileMotorcycles 24p / mileBikes 20p / mileCar benefit 0 – 50g/km CO2 13%51 – 75g/km CO2 16%76 – 94g/km CO2 19%Then add 1% for every additional 5g/km (rounded down to nearest 5g/km) Diesel supplement 4%Maximum benefit rate 37%Pension contributions Annual allowance 40,000Limit beyond which tapering applies 150,000Minimum allowance following taper restriction 10,000Lifetime allowance 1,030,000Capital allowances Annual investment allowanceRate 100%Maximum investment 200,000Energy-efficient assets rate 100%Writing down allowancesGeneral pool 18%Special rate pool 8%Long life assets pool 8%VATCompulsory registration threshold 85,000Deregistration threshold 83,000Flat rate scheme turnover limit 150,000Annual accounting scheme turnover limit 1,350,000Cash accounting scheme turnover limit 1,350,000Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Related