tasaccountant.co.uk 

Tax and Accounting Services for SME

Income Tax rate                               2017-18   2016-17

Basic rate band – tax rate of 20% on 

savings and non-savings income up to: £33,500 £32,000 

Higher rate band – tax rate of 40% on £33,501 – £32,001 

– savings and non-savings income   £150,000    £150,000 

Additional rate band – tax rate of 45% on savings and non-savings income £150,000+ £150,000+ 

Dividend allowance – tax rate of 0% 

on dividend income up to:                 £5,000      £5,000 

Tax rates on dividends:

•Basic rate band                             7.5%          7.5% 

•Higher rate band                            32.5%        32.5%

 •Additional rate band                      38.1%        38.1%

Rates applicable to trusts: Dividends 38.1%       38.1% 

Other income                                  45%           45%

 *Not available if taxable non-savings income exceeds the starting rate limit. 

Higher income 

child benefit charge 1% of benefit per £100 of income from £50,000 to £60,000 


Employee incentives 

Enterprise Management Scheme (EMI) A tax-advantaged share option scheme to help eligible smaller companies recruit and retain staff. • No income tax on acquiring shares unless the exercise price is less than the market value at date of grant. • No formal approval required. • Open to any number of employees. • Subject to overall limit of £3 million worth of shares. • The maximum value of options per employee is £250,000