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Chartered Certified Accountants
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Tax rate and allowances

The personal tax allowance will increase to £11,850 from the new tax year. Therefore, the emergency tax code will be 1185L/1 (the 1 indicating that it is non-cumulative). There is no change to the income limit which is set at £100,000 your personal allowance reduces by £1 for every £2 of income over this limit. The higher rate threshold, the point at which 40% tax kicks in, is £46,350 but this only applies in England, Wales and Northern Ireland. Please see our other article for changes to income tax for Scotland.

http://www.senceaccounting.co.uk/news/scotland-changes-to-income-tax-2018-19

Eligible taxpayers across the Uk can transfer 10% of the year’s personal allowance to their partner so they can maximise their tax-free income if the other party in the household does not earn enough to utilise their full tax free personal allowance. The taxpayer receiving the additional personal allowance must still pay be a basic rate taxpayer.

14 Feb 2018

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