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Useful Information

Tax Codes explained

BR - All income is taxed at the basic rate (currently 20%).

OT - All income is taxed at the appropriate rate with no personal allowance. This is used often where there is a 2nd job.

DO - All income is taxed at the Higher Rate of tax (currently 40%). Often used for a 2nd job or pension.

D1 - All income is taxed at the additional rate of tax (currently 45%). Often used for a 2nd job or pension.

NT - No tax is taken from income.

L - Basic Personal Allowance has been applied.

T - HMRC need to review the code.

M - Marriage Allowance - you've received 10% of your partner's Personal Allowance

N - Marriage Allowance - you've transferred 10% of your Personal Allowance to your partner

K - Total allowances are less than total deductions, effectively a negative code.

S - Your income is taxed using the rates in Scotland

 

Note: Notices of codings are no longer copied to your Tax Agent due to HMRC cost cutting measures so please ensure you provide your agent with a copy so that they can check that the correct code is being applied.

Income Tax Tables

2018/19 Taxable Income Income Rate Dividend Rate
Starting Savings Rate * 0 - 5,000 0% 0%
Basic Rate 0 - 34,500 20% 7.5%
Higher Rate 34,501- 150,000 40% 32.5%
Additional Rate > 150,000 45% 38.1%

Child Benefit charge from 7/1/2013 is 1% of benefit for each £100 of income for the tax year between £50,000-£60,000.

* The starting savings rate only applies to savings income. If an individual's taxable non-savings income is above the starting rate limit, then the starting rate for savings will not be available for savings income.

Dividend Allowance £2,000 (2017/18 £5,000) effectively taxed at 0%

For 2018/19 for Scottish taxpayers the basic rate band is £31,500. This applies only to non-savings, non-dividend income.

2017/18 Taxable Income Income Rate Dividend Rate
Starting Savings Rate * 0 - 5,000 0% 0%
Basic Rate ** 0 - 33,500 20% 7.5%
Higher Rate 33,501- 150,000 40% 32.5%
Additional Rate > 150,000 45% 38.1%

* The starting savings rate only applies to savings income. If an individual's taxable non-savings income is above the starting rate limit the 0% starting rate will not apply.

** For 2017/18 for Scottish taxpayers the basic rate band is £31,500. This applies only to non-savings, non-dividend income.

Income Tax Reliefs 2018/19 2017/18
Personal Allowance 11,850 11,500
Personal Allowance – if born before 6/4/1935 11,850 11,500
(reduce PA by £1 for every £2 adjusted net income over £100,000)
Married Couple's Allowance (relief 10%) if born before 6/4/1935 8,695 8,445
Married Couple's Allowance (relief 10%) minimum amount 3,360 3,260
Age Allowance Income Limit - (reduce allowance by £1 for every £2 of adjusted net income over threshold) 28,900 28,000
Transferable Tax allowance for married couples & civil partners 1,185 1,150
Dividend Allowance (0% rate to income within the allowance) 2,000 5,000
Savings Allowance – Basic rate taxpayers (0% rate to income within the allowance) 1,000 1,000
Savings Allowance – Higher rate taxpayers (0% rate to income within the allowance) 500 500
Trading Allowance 1,000 1,000
Property Income Allowance 1,000 1,000
Rent a Room limit 7,500 7,500

Other Tax Tables

Corporation Tax Rates 2018/19 2017/18
Corporation Tax 19% 19%
Capital Gains Tax 2018/19 2017/18
Annual exemption 11,700 11,300
Tax rate – to basic rate limit 10% 10%
Tax rate – above basic rate 20% 20%
Tax rate – to basic rate limit (on residential property) 18% 18%
Tax rate – above basic rate limit (on residential property) 28% 28%
Entrepreneurs Relief – up to lifetime limit of £10 million 10% 10%
Value Added Tax 2018/19 2017/18
VAT Registration Threshold 85,000 83,000
Rate 20% 20%

Key Dates 2018/19

Self Assessment

31 July 2018 - 2nd payment on account for 2018/19.

5 October 2018 - Deadline for notifying HMRC of new sources of income if no tax return issued for 2017/18.

31 October 2018 - Deadline for submission of 2017/18 paper returns.

31 January 2019 - Deadline for filing electronic returns for 2016/17. Balancing payment for 2017/18 and 1st payment on account for 2018/19.

Payroll

19 May - Final RTI submission due to HMRC for year to 5 April 2018.

31 May - Forms P60 due to employees for year to 5 April 2018.

6 July - Forms P11d, P9d, P11d (b) due to HMRC (with copies to employees) for year ended 5 April 2018.

19 July - Class 1A NIC due for year ended 5 April 2018.

19 October - Class 1B NIC due for year ended 5 April 2018.