- Published: 09 July 2011
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Social Insurance increased by 10% on 1st April 2017 - same rates applicable for tax year Jul 17/Jun 18.
Maximum S/I for Employee capped at £27.50 PW (previous £25.16) and maximum for Employer capped at £36.50 PW (previous £32.97)
No tax payable for taxpayer with assessable income of £11,150 or less (increase of £50)
Tax Codes re-numbered to [1 to 52] from previous [21 to 72]
Gross Income Based (GIB) System Tax Rates
A) Up to £25,000 |
First £10,000 at 6% |
Next £ 7,000 at 20% |
Balance at 28% |
B) Above £25,000 |
First £ 17,000 at 16% |
Next £ 8,000 at 19% |
Next £ 15,000 at 25% |
Next £ 65,000 at 28% |
Next £395,000 at 25% |
Next £200,000 at 18% |
Balance at 5% |
Allowance Based System (ABS) Tax Rates
First £ 4,000 at 14% |
Next £12,000 at 17% |
Balance at 39% |
A tax credit of £300 (or 2% if higher) will be given of their annual tax bill.
Taper Relief between £11,151 and £19,712
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Social Insurance contributions as per new rates at 1st April 2017
The ER (Earnings Related) and SE (Self Employed) codes remain as under:
Employee
10% on Gross earnings with Maximum of £27.50 (Per Week) and Minimum of £5.50 (Per Week)
Employer
20% on Gross earnings with Maximum of £36.50 (Per Week) and Minimum at £16.50 (Per Week)
Self Employed
20% on Gross earnings with Maximum of £33.50 (Per Week) and Minimum of £11.00 (Per Week)