2018-19 Tax Rates and Thresholds

The amount of income tax you deduct from your employees depends on their tax code

(https://www.gov.uk/employee-tax-codes) and how much of their taxable income is above their personal allowance (https://www.gov.uk/income-tax-rates/current-rates-and-allowances).

The tax thresholds and rates for England and Wales from 6 April 2018 up until 5 April 2019 are: -

Personal allowance

£228 per week

£988 per month

£11,850 per year

 

 

UK basic tax rate

 

20% on annual earnings above the PAYE tax threshold and up to £34,500

 

UK higher tax rate

 

40% on annual earnings from £34,501 to £150,000

 

UK additional tax rate

 

45% on annual earnings above £150,000

 

There are different rates for Scotland.

The emergency tax codes from 6 April 2018 are:

  • 1185L W1
  • 1185L M1
  • 1185L X

To find out more about emergency tax codes please visit https://www.gov.uk/tax-codes/emergency-tax-codes.

For more detailed information on this, please visit https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2018-to-2019

 

Helen Fielding 19 February 2018