The personal tax allowance for 2017-18 will be £11,500, for individuals with this tax allowance the code will show as 1150L. Although this is due to be the standard tax code for 2017-18 some individuals will be on a different code depending on their circumstances, have a look at our tax codes article for more information.
For the 2017-18 tax year individuals on the standard tax code will not start paying tax at 40% unless their earnings exceed £45,000, this is the greatest amount someone can earn before paying 40% tax since 2010-11, the last 7 years have seen a decrease in the higher rate threshold in both real and actual terms.
The below table shows the rate bandings from 2010-11 to those for 2017-18, the bandings for future years will be confirmed closer to the time.
|Basic Rate Threshold||£37,400||£35,000||£34,370||£32,010||£31,865||£31,785||£32,000||£33,500||20%|
|Higher Rate Threshold||£43,875||£42,475||£42,475||£41,450||£41,865||£42,385||£43,000||£45,000||40%|
|Additional Rate Threshold||£150,000||£150,000||£150,000||£150,000||£150,000||£150,000||£150,000||£150,000||45%|