Tax thresholds and rates for 2016-2017
Employee personal allowance: £204 per week, £883 per month, £10,600 per year
Basic tax rate: 20% on annual earnings above the PAYE tax threshold and up to £31,785
Higher tax rate: 40% on annual earnings from £31,786 to £150,000
Additional tax rate: 45% on annual earnings above £150,000
Class 1 National Insurance thresholds for 2016-2017
Lower Earnings Limit (LEL): £112 per week, £486 per month, £5,824 per year
Primary Threshold (PT): £155 per week, £672 per month, £8,060 per year
Secondary Threshold (ST): £156 per week, £676 per month, £8,112 per year
Upper Accrual Point (UAP): £770 per week, £3,337 per month, £40,040 per year
Upper Secondary Threshold (under 21) (UST): £815 per week, £3,532 per month, £42,385 per year
Upper Earnings Limit (UEL): £815 per week, £3,532 per month, £42,385 per year
National Minimum Wage
The rates apply from 1 October 2014 and are likely to change again on 1 October 2015.
Aged 21 and above: Hourly rate £6.5
You must register for VAT with HM Revenue and Customs (HMRC) if your business’ VAT taxable turnover is more than £82,000.
You can ask HM Revenue and Customs (HMRC) to cancel your registration if your VAT taxable turnover falls below the de-registration threshold of £80,000.