The tax changes announced affects only the 'Low Earners'. No tax payable for taxpayer with assessable income of £11,200 or less (increase of £50)
Please note that Social Insurance has been increased by 10% effective as from 01/07/2018.
Gross Income Based (GIB) System Tax Rates
| A) Up to £25,000 |
| First £10,000 @ 6% |
| Next £ 7,000 @ 20% |
| Balance @ 28% |
| B) Above £25,000 |
| First £ 17,000 @ 16% |
| Next £ 8,000 @ 19% |
| Next £ 15,000 @ 25% |
| Next £ 65,000 @ 28% |
| Next £395,000 @ 25% |
| Next £200,000 @ 18% |
| Balance @ 5% |
Allowance Based System (ABS) Tax Rates
| First £ 4,000 @ 14% |
| Next £12,000 @ 17% |
| Balance @ 39% |
A tax credit of £300 (or 2% if higher) will be given of their annual tax bill.
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Social Insurance contributions has increased by 10% this year as under:
Employee
10% on Gross earnings Per Week with Maximum of £30.25 and Minimum of £6.05 (Increase of £2.75 PW)
Married Woman
Increased from £14.50 to £15.95 (Per Week) (Increase of £1.45 PW)
Employer
20% on Gross earnings Per Week with Maximum of £40.15 and Minimum at £18.15 (Increase of £3.65 PW)
Self Employed
20% on Gross earnings Per Week with Maximum of £36.85 and Minimum of £12.10 (Increase of £3.35 PW)