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Tax Allowances 2018/19 – what you need to know

Tax Allowances 2018/19 – what you need to know

Category: Money
Author: Lieke Braadbaart
Date: 12/04/2018

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The start of a new tax year on 6 April means you'll need to familiarise yourself with the tax allowances and limits for the year ahead, from the annual ISA allowance to the personal income allowance and beyond.

You can find a detailed overview of the updates for the 2018/19 tax year – including Income tax, National Insurance Contributions (NIC), capital gains tax, VAT, marriage allowance, fuel duty rates and capital allowances, together with key payment dates and tax return deadlines – in our updated Tax Tables for 2018/19.

This document brings you the details of all tax allowances, brackets and thresholds for the year ahead in one place, allowing you to save it on your computer for quick and easy reference whenever required – ideal for when you're compiling your tax return.

In the meantime, we thought we'd bring you a quick overview of the some of the key changes for the year ahead, to ensure you're fully informed before the tax year begins.

Personal allowance tax brackets

The personal allowance – in other words, the amount of money you can earn before having to pay income tax – has risen to £11,850, with earnings after that level being subject to income tax of 20%. However, if you make more than £46,350 you will be a higher rate taxpayer, which means that the proportion of earnings that fall above this threshold will be taxed at 40%. The additional rate band (where 45% tax is applied) remains at £150,000, after the tax-free allowance has been deducted. Note that thresholds are different in Scotland.

ISA allowance

The 2018/19 ISA limit remains at £20,000, while the Junior ISA allowance increases to £4,260, up from £4,128, with the Child Trust Fund subscription limit following suit.

Personal savings allowance

The personal savings allowance, which allows you to earn interest tax-free regardless of where your money is held, remains at £1,000. If you earn more than this in interest through a non-ISA account, be sure to mention it on your tax return.

National Living Wage and National Minimum Wage

As mentioned in the Spring Statement, the absolute minimum that employers can legally pay their staff has already risen, with the minimum hourly rate for those aged 25 and over at £7.83 since the start of April.

State Pension

The State Pension is rising by 3% in April, due to inflation sitting at this amount in September 2017. As a result, those who qualify for the full new State Pension will see their weekly payments rise from £159.55 to £164.35. Alternatively, those who receive the basic State Pension will see theirs rise from £122.30 to £125.95 a week.

And more…

You can find more detailed information on these changes and more in our dedicated Tax Tables for the year ahead. This document has been kindly sponsored by Investec to ensure we can bring it to you completely free of charge, and they wanted to say a few words:


"We're delighted to be sponsoring the Moneyfacts Tax Tables this year. At Investec, our experienced team is here to support brokers, providing asset finance solutions, both small and large, for their clients' business lifecycle. We understand that no two businesses are alike, and we're committed to understanding the needs of both our clients and their businesses.

"Our network of dedicated relationship managers pride themselves on building trusted and long-term partnerships, and with their sector expertise, will always work tirelessly to find the best solution."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.