national insurance

April 2019 tax rates

The Salary Calculator has been updated with the tax rates which will take effect from 6th April 2019. There is a significant increase in the tax-free Personal Allowance from £11,850 to £12,500 per year, and outside of Scotland the threshold from 20% basic rate to 40% higher rate income tax has been increased to £50,000. Scottish tax thresholds are different from the rest of the UK, current information suggests that they will not increase as much as the UK rates will.

There have also been increases in the thresholds for Plan 1 and Plan 2 Student Loan repayments, so those paying off their loans will find their repayments lowered in the new year.

You can try out the April 2019 tax rates for yourself by choosing “2019 / 20” in the Tax Year drop-down on The Salary Calculator. You can also see a side-by-side comparison of 2018 and 2019 with the 2018 and 2019 income tax comparison page.

The calculator has been updated with the best information currently available – if any of the details change before the start of the tax year the calculator will be updated to reflect those changes.

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None of the content on this website, including blog posts, comments, or responses to user comments, is offered as financial advice. Figures used are for illustrative purposes only.

April 2018 tax rates

The Salary Calculator has been updated, and the new tax information which takes effect from 6th April 2018 has been applied. The personal allowance has been increased from £11,500 to £11,850, meaning you can earn an extra £350 tax-free per year. The thresholds between tax bands have also been increased.

In Scotland, new tax bands have been introduced, making income tax calculations quite different from in the rest of the UK. There are 5 tax rates, 19%, 20%, 21%, 41% and 46%, compared to just three in the rest of the UK (20%, 40% and 45%). The result of this difference is that lower earners North of the border can save as much as £20 per year compared to the rest of the UK, but with higher earners potentially paying quite a bit more in Scotland than they would if they were based elsewhere in the UK. The point at which Scottish earners go from paying less to paying more tax is a salary of about £26,000.

You can try out the April 2018 tax rates for yourself by choosing “2018 / 19” in the Tax Year drop-down on The Salary Calculator. You can also see a side-by-side comparison of 2017 and 2018 with the 2017 and 2018 income tax comparison page.

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New – Election Calculator 2017

With a General Election on the way, The Salary Calculator’s Election Calculator has been updated with the latest campaign proposals from the main parties. This allows you to see an estimate of how the different parties’ policies might affect you if they come to power. Right now, only the 3 parties Conservative, Labour and Liberal Democrats have produced their manifestos with details of their taxation plans. When other parties such as The Green Party and UKIP reveal their plans, the calculator will be updated.

As explained on the Election Calculator itself, this is a simplified version of The Salary Calculator, and some estimates and assumptions have had to be made. Also, of course, income tax and National Insurance are only some of the ways that governments can raise revenue, and other policy proposals may affect your financial situation. With that in mind, check out the 2017 Election Calculator.

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April 2017 tax rates and Scottish income tax

The Salary Calculator has been updated with the new Income Tax and National Insurance rates which will apply from 6th April 2017. The tax-free personal allowance has been raised by £500 to £11,500, allowing you to take home more of your hard-earned cash without having to pay income tax. Income tax rates have stayed the same, but there is a change to the thresholds between the basic rate (20%) and higher rate (40%) tax bands.

For the first time, from April 2017, income tax will be different if you are resident in Scotland than if you live in the rest of the UK. The Scottish rates of income tax will be set by the Scottish Government rather than by the UK Government in Westminster. For UK income tax, the threshold to 40% tax has gone up to £45,000 (assuming you have the full personal allowance) – but in Scotland, the threshold stays where it was last year at £43,000. Since the increased personal allowance applies both sides of the border, almost everyone will be better off from April 2017 than they were this year – but those earning over £43,000 in Scotland could be as much as £400 worse off over the year compared to if they lived in the rest of the UK. More information about the introduction of the Scottish income tax is available from the Scottish Government.

Head over to The Salary Calculator and choose the 2017/18 tax year to see the difference to you – or try the side-by-side comparison of 2016 and 2017 take home.

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Budget 2016

Tomorrow, the Chancellor of the Exchequer will deliver his annual budget to the Houses of Parliament. We have already heard about some possible announcements (such as the introduction of a scheme to help people increase their savings), and we have been told that there will be no changes to pension tax relief (which looked likely, for a while).

From 6th April, the new tax year means changes to tax-free personal allowances, tax thresholds and the like. The Salary Calculator has been updated with the latest values so you can see what your payslip will look like from April onwards. The personal allowance has been increased to £11,000 per year, which will reduce the tax due for most people. There are changes to National Insurance this year, too – since it is no longer possible for a pension to be “contracted-out” (earning a reduction in NI contributions), those of you who had one of these pensions will be paying the full NI contributions from 6th April.

If you would like to see how these changes will affect you, head over to The Salary Calculator to see what difference it will make to your payslip!

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