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Dental Accounts |
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| Some tax information that may be of interest to dental practitioners: | |
| INCOME TAX |
2016/2017 |
2015/2016 |
Basic rate band - income up to Starting rate for savings Basic rate Dividend ordinary rate Higher rate - income over Higher rate Dividend upper rate Additional rate - Income over Additional rate Dividend additional rate Starting rate limit (Savings Income) |
£32,000 *0% 20% **7.5% £32,000 40% 32.5% £150.000 45% **38.1% *£5,000 |
£31,785 *0% 20% 10% £31,785 40% 32.5% £150,000 £45% 37.5% *£5,000 |
| For 2017/17 Scottish Taxpayer effectively subject to the same income tax rates as rest of Uk. *If an Individual's taxable non-savings income exceeds the starting rate limit, then the starting rate limit for savings will not be available for savings income. For 2016/17 £1000 of savings income for basic rate taxpayers (£500 higher rate) may be tax free. **For 2016/17 first £5000 of dividends are tax free. |
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| PERSONAL ALLOWANCES | ||
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Born after 5th April 1938 Born before 6th April 1938 |
£11,000 *£11,000 |
£10,600 *£10,660 |
| Married couple's allowance (MCA) Either partner born before 6 April 1935
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*£8,355 |
*£8,355 |
| Transferable tax allowance | ||
| For certain married couples (Relief 20%) | £1,100 | £1,060 |
| *Allowances for are reduced by £1 for every £2 that adjusted net income exceeds £27,700 (£27,000) to a minimum PA of £11,000 (£10,000) and to a minimum MCA of £3,220. where adjusted net income exceeds £100,000, PA is reduced in the same way until it is nil regardles if individuals date of birth. | ||
| NATIONAL INSURANCE CONTRIBUTIONS |
2016/2017 |
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Class 1 not contracted out |
Employer (primary) |
Employee (secondary) |
Payable on Weekly earnings of: Below £112(Lower earnings limit) £112 to £155 (Employer's primary threshhold) up to £156(secondary threshold) above £156 £155.01-£815 (upper earnings limit) £156.01-£815 (Upper secondary threshold-under 21) and apprentices over 25 Above £815 |
Nil 0% - - **12% 12% **2% |
Nil 13.8% - 0% |
*No NIc's are actually payable but notional class 1 NIC is deemed to have been payed, this protects certain basic state benefit entitlements. ** over state pension age employee contribution is generally Nil |
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Employment Allowance |
up to £3000 (per year) | |
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Class 1A On relevant benefits |
13.8% |
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Class 2 Self employed Limit of net earnings for exception |
£2.80 per week £5,965 per annum |
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Class 3 Voluntary contributions may be available to 5thApril 2017 in order to obtain extra additional state pension
(maximum £25 per week)-variable rates acording to age |
£14.10 per week |
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Class 4 *Self employed on profits
£8,000 - £42,385 Excess over £42,385 *exemption applies if state retirement age is reached by 6th April 2013 |
9% 2% |
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