Email: info@taxreturn.co.uk



Please find below details of the new tax rates and allowances

which are applicable for the year commencing April, 2016.


Please do not hesitate to contact us if you would like further information

or you wish to discuss any of the tax rates or allowances in more detail.


                                 

National Insurance Contributions

Class 1 Employee (primary)
Payable on weekly earnings of  
Below £112 (lower earnings limit) 0%
£112 - £155 (primary threshold) 0%*
£155.01 - £827 (upper earnings limit) 12%**
Above £827 2%**
* No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects certain state benefit entitlements.

** Over state pension age, the employee contribution is generally nil
  Employer (secondary)
Up to £156 (secondary threshold) Nil
Above £156 13.8%
£156.01 - £827 (upper secondary threshold - under 21s) 0%
£156.01 - £827 (apprentice upper secondary threshold for under 25s) 0%
   
Employment Allowance Up to £3,000 (per year)
   
Class 1A (on relevant benefits) 13.8%
   
Class 1B (on PAYE settlement arrangement) 13.8%
   
Class 2 (Self employed) £2.80 per week
Small profits threshold £5,965 per annum
   
Class 3 (Voluntary) £14.10 per week
   
Class 3A  
Voluntary contributions may be available to 5 April 2017 in order to obtain extra additional State Pension (maximum £25 a week) - variable contribution rates according to age.
   
Class 4* (Self employed on annual profits)  
£8,060 - £43,000 9%
Excess over £43,000 2%
*Exemption applies if state pension age was reached by 6 April 2016.


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