Income Tax Rates

If you are looking at income Tax Rates and reviewing or planning your finances, please feel free to contact us. We can chat through your specific circumstances and tax efficient ways to legally minimize your income tax.

Income Tax rates and taxable bands

Rate 2013-14 2014-15 2015-16
Starting Rate for Savings: 10% * £0 – £2,790 £0 – £2,880 £0-£5,000
Basic Rate: 20% £0-£32,010 £0 – £31,865 £0-£31,785
Higher Rate: 40% £32,011 – £150,000 £31,866 – £150,000 £31,786 – £150,000
Additional Rate: 45% Over £150,000 Over £150,000 Over £150,000

* The 10% starting rate applies to savings income only. This rate has been reduced to 0% from 6th April 2015.

If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above the limit then the starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits. The rates available for dividends are the 10% ordinary rate, the 32.5 % divided upper rate and the dividend additional rate of 42.5 per cent (the dividend additional rate is 37.5 per cent from 2013-14).

Please contact us for further information.

Disclaimer:

The information given have been provided as a helpful reference point. The Tax Rates provide a guide only and your specific circumstances are best discussed directly with us.

No action should be taken without seeking the appropriate professional or legal advice. The authors accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this APP.