Tax thresholds and rates for 2018-2019
Employee personal allowance: £228 per week, £988 per month, £11,850 per year
Basic tax rate: 20% on annual earnings above the PAYE tax threshold and up to £34,500
Higher tax rate: 40% on annual earnings from £34,501 to £150,000
Additional tax rate: 45% on annual earnings above £150,000
Class 1 National Insurance thresholds for 2018-2019
Lower Earnings Limit (LEL): £116 per week, £503 per month, £6,032 per year
Primary Threshold (PT): £162 per week, £702 per month, £8,424 per year
Secondary Threshold (ST): £162 per week, £702 per month, £8,424 per year
Upper Accrual Point (UAP): £892 per week, £3,863 per month, £46,350 per year
Upper Secondary Threshold (under 21) (UST): £892 per week, £3,863 per month, £46,350 per year
Upper Earnings Limit (UEL): £892 per week, £3,863 per month, £46,350 per year
National Minimum Wage
The rates apply from 1 April 2018 and are likely to change again on 1 October 2019.
Aged 21 and above: Hourly rate £7.38
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.