Latest News | AP Accounting Solutions Limited

Tax and tax credit rates and thresholds for 2015-16

04 May 2015

1. Bands of taxable income and corresponding tax rates

	2014-15	2015-16
	Per cent of income / Â£ a year
Basic rate	20%	20%
Higher rate	40%	40%
Additional rate	45%	45%
Starting rate for savings income (*)	10%	0%
Dividend ordinary rate	10%	10%
Dividend upper rate	32.5%	32.5%
Dividend additional rate	37.5%	37.5%
Trust rate	45%	45%
Starting rate limit (savings income)	Â£2,880	Â£5,000
Basic rate band	Â£0 - 31,865	Â£0 - 31,785
Higher rate band	Â£31,866 - 150,000	Â£31,786 - 150,000
Additional rate band	Over Â£150,000	Over Â£150,000

(*) From 2008-09 there is a starting rate for savings income only. If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate for savings will not be available for savings income.

2. Income tax allowances

	2014-15	2015-16	Change
	Â£ a year
Personal Allowance
those born after 5 April 1948	10,000	10,600	600
those born between 6 April 1938 and 5 April 1948	10,500	10,600	100
those born before 6 April 1938	10,660	10,660	-
Income limit for personal allowance (*1)	100,000	100,000	-
Income limit for personal allowances (born before 6 April 1948) (*2)	27,000	27,700	700
Married couple’s allowance (*3)
maximum amount (*4)	8,165	8,355	190
minimum amount (*5)	3,140	3,220	80
Blind person’s allowance	2,230	2,290	60
Transferable Tax Allowance for married couples and civil partners (*6)	-	1,060	-

*1 The personal allowance reduces where the individual’s income is above this limit by Â£1 for every Â£2 above the limit. This applies regardless of the individual’s date of birth.

*2 This allowance reduces where the individual’s income is above the income limit by Â£1 for every Â£2 above the income limit until it reaches the level of the personal allowance for someone born after 5 April 1948.

*3 Available to people born before 6 April 1935. Tax relief for this allowance is restricted to 10 per cent.

*4 This allowance is reduced when the individual’s income is above the income limit. This is at a rate of Â£1 for every Â£2 above the income limit until it reaches the minimum amount. Any reduction in the married couple’s allowance applies after any reduction to the individual’s personal allowance.

*5 This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935.

*6 Available to spouses/ civil partners born after 5 April 1935. This allowance is 10% of the personal allowance for those born after 5 April 1938. It allows a spouse or civil partner who is not liable to income tax above the basic rate to transfer this amount of their personal allowance to their spouse/ civil partner. The recipient must not be liable to tax above the basic rate. The recipient is eligible to a tax reduction of 20% of the transferred amount.

3. National Insurance contribution thresholds

	2014-15	2015-16
	Â£ per week	Â£ per week
Weekly Lower Earnings Limit (LEL) (*1)	111	112
Weekly Primary Threshold (PT) (*1)	153	155
Weekly Secondary Threshold (ST) (*2)	153	156
Upper Earnings (UEL)	805	815
Upper Profits Limit (UPL)	41,865 per year	42,385 per year
Upper Secondary Threshold for U21’s (*3)	N/A	815
Small Earnings Exception (SEE)/Small Profits Threshold (SPT) (1, 4)	5,885	5,965
Lower Profits Limit (LPL) (*1)	7,956 (per year)	8,060 (per year)
Employment Allowance	2,000 (per year, per employer)	2,000 (per year, per employer)

*1 These thresholds are uprated by CPI.

*2 The Weekly Secondary Threshold is uprated by RPI.

*3 Upper Secondary Threshold (UST) introduced from April 2015 for employees under the age of 21. The rate of secondary NICs for employees under the age of 21 on earnings between the ST and UST will be 0%.

*4 The Small Profits Threshold replaces the Small Earnings Exception from 6 April 2015.

4. Class 1 National Insurance contribution rates 2015-16

Employee (primary)		Employer (secondary)
Earnings (*1)	NIC rate (*2)	Earnings (*1)	NIC rate (*3 )
Â£ a week	per cent	Â£ a week	per cent
Below Â£112 (LEL)	0	Below Â£156 (ST)	0
Â£112 – Â£155 (PT) (*4)	0	Above Â£156 (ST)	13.8
Â£155 - Â£815 (UEL)	12
Above Â£815	2

*1 The limits are defined as LEL - lower earnings limit; PT - primary threshold; ST - secondary threshold; and UEL - upper earnings limit.

*2 The contracted-out rebate for primary contributions is 1.4 per cent of earnings between the LEL and upper accrual point (UAP) of Â£770 for contracted-out salary-related schemes (COSRS).

*3 The contracted-out rebate for secondary contributions is 3.4 per cent of earnings between the LEL and UAP for COSRS.

*4 No National Insurance contributions (NICs) are actually payable but a notional Class 1 NIC is deemed to have been paid in respect of earnings between LEL and PT to protect contributory benefit entitlement.

5. Self-employed National Insurance contribution rates 2015-16

Annual profits (*1) (Â£ a year)	Class 2 (*2) (Â£ a week)	Class 4 (per cent)
Below Â£5,965 (SPT) (*3)	0.00	0
Â£5,965 to Â£8,060 (LPL)	2.80	0
Â£8,060 to Â£42,385 (UPL)	2.80	9
Above Â£42,385	2.80	2

*1 The limits are defined as SPT - small profits threshold; LPL - lower profits limit and UPL - upper profits limit.

*2 Class 2 NICs are paid at a weekly flat rate of Â£2.80 by all self employed persons unless they have profits below the small profits threshold. The rate is uprated by CPI

*3 The self-employed may pay Class 2 contributions if their profits are below the SPT.

6. Other NICs rates

	2014-15	2015-16
Married Women’s reduced rate (per cent) (*1)	5.85%	5.85%
Special Class 2 rate for share fishermen (*2)	Â£3.40 per week	Â£3.45 per week
Special Class 2 rate for volunteer development workers (*2)	Â£5.55 per week	Â£5.60 per week
Class 3 rate (2, 3)	Â£13.90 per week	Â£14.10 per week

*1 Married Women’s Reduced Rate is paid only by married women and certain widows with valid reduced rate elections on earnings between PT & UEL and at 2% on earnings that exceed UEL.

*2 These rates are uprated by CPI

*3 Class 3 NICs can be paid by contributors to make the year a qualifying year for basic State Pension and Bereavement Benefit purposes.

7. Working and Child Credit Tax rates and thresholds

7.1 Working Tax Credit

	2014-15	2015-16	Change
	Â£ a year
Basic Element	1,940	1,960	20
Couple and lone parent element	1,990	2,010	20
30 hour element	800	810	10
Disabled worker element	2,935	2,970	35
Severe disability element	1,255	1,275	20
Childcare element
maximum eligible cost for one child	Â£175 per week	Â£175 per week	0
maximum eligible cost for two or more children	Â£300 per week	Â£300 per week	0
percent of eligible costs covered	70 per cent	70 per cent	0

7.2 Child tax credit

	2014-15	2015-16	Change
	Â£ a year
Family element	545	545	0
Child element	2,750	2,780	30
Disabled child element	3,100	3,140	40
Severely disabled child element	1,255	1,275	20

7.3 Income thresholds and withdrawal rates

	2014-15	2015-16	Change
	Â£ a year
Income threshold	6,420	6,420	0
Withdrawal rate (per cent)	41	41	0
First threshold for those entitled to Child Tax Credit only	16,010	16,105	95
Income rise disregard	5,000	5,000	0
Income fall disregard	2,500	2,500	0

8. Child Benefit and Guardian’s Allowance

	2014-15	2015-16	Change
	Â£ per week
Child Benefit
First Child	20.50	20.70	0.20
Second and subsequent children	13.55	13.70	0.15
Guardian’s Allowance	16.35	16.55	0.20

9. Tax-free Savings Accounts

	2014-15	2015-16
	Â£ a year
Individual Savings Account (ISA) subscription limit	15,000 (*1)	15,240
Junior ISA subscription limit	4,000 (*2)	4,080
Child Trust Fund (CTF) subscription limit	4,000 (*2)	4,080

*1 Took effect from 1 July 2014. Between 2 April and 30 June 2014 the total annual subscription limit for 2014-15 was Â£11,880 of which up to Â£5,940 could be placed in a cash ISA.

*2 Took effect from 1 July 2014. Between 2 April and 30 June 2014 the Junior ISA and CTF annual subscription limit for 2014-15 was Â£3,840.

10. Fuel benefit charge

	2014-15	2015-16
Car fuel benefit charge multiplier	Â£21,700	Â£22,100
Van fuel benefit charge	Â£581	Â£594

11. Van benefit charge

	2014-15	2015-16
Van benefit charge	Â£3,090	Â£3,150

// What Do Clients Say?

The support, advice and help that we have received from AP Accounting Solutions has been outstanding. Last year we took on Sage which was a big step for us but the process was made so much easier knowing that Ola was there to guide us in the right direction. The best thing about AP Accounting Solutions is that you can always contact them, no matter what time or day it is, which is something you can't get from most accountancy companies.

Fitch Autos Ltd, Brownhills, West Midlands

As a small construction company Ola, the director of AP Accounting Solutions has been the perfect find for all of our accounting needs, business advice and support. Ola has not only provided us with great service she is always there for us to help with our needs. Any enquiries or concerns are swiftly dealt with and the support offered is second to none. I couldn't recommend Ola enough as the perfect support for your business she is very helpful and a lovely lady to work with and with a professional manner, I can say with confidence that I know our accounts are safe at hand which helps to take some of the stress away from us.

Consilio Construction and Architecture Ltd

Each month, Ola and the team provide me with a speedy response to my payroll request. Not only do they generally run our payroll, they also offer additional advice and support when dealing with payroll, holiday, commission and sickness queries. Nice to have a direct dial to someone who is always on the other end and happy to help

Diamond Nails & Beauty, Cardiff.

"We have been working with Ola and her team for two years. They provide us with expert advice in relation to our annual accounts, tax and VAT. The team at AP Accounting Solutions are very professional, and always give clear advice and guidance in a prompt and efficient manner. We would not hesitate to recommend their services"

Lukasz Wenske, Director of Lenex Rendering Ltd

We have worked with AP Accounting Solutions for the past 2 years and particularly value their pro-active style of suggesting ideas and solutions regarding the accounting of our businesses. It is refreshing to find a firm of accountants that not only offer a personal service, but that also have extensive expertise in different areas including specialist taxation and solid back office support. They are extremely efficient.

Prima Universal Ltd

Since we appointed AP Accounting Solutions we have been nothing but impressed with the service they have provided. Ola and the team immediately identified an overpayment in tax, which had been missed by other accountants, and secured us a rebate to the tune of more than £4,000. Beyond the day-to-day management of AP Accounting Solutions accounts, AP Accounting Solutions provide us with solid financial planning advice, which to a business of our size in invaluable. We are delighted by the quality of service we continue to receive from AP Accounting Solutions. This is an accountancy firm really committed to saving the client money! We get the care and attention we did not get from our previous accountant.

Sowalo Ltd

"We needed a system that used foreign currencies and Ola worked closely with us to determine our needs and match the product. Sage 50 was introduced as a suitable platform and one for which AP Accounting Solutions could provide beneficial support. The support pre, during and post installation has been a hassle-free migration that has saved us money. Well done and thanks. Very professional and friendly team who are always on hand and ready to help out".

KW Interpreting

I sincerely recommend the accounting services run by Ola. I do have a comparison of services of other accounting companies. Ola carried out the accounts of my company in professional and timely manner. She also possesses the necessary knowledge and experience in running accounting services for businesses. I used her services and I am very pleased with the cooperation which is why I decided to share my opinion here.

Eagle Contractors Ltd

As a new client we could not recommend AP Accounting Solutions more highly. We have found their service to be professional, efficient, prompt and friendly and look forward to working together for many years to come. Ola always finds time, always, available seven days a week... Stellar advice with a genuine personal touch. Their personal service is what makes them stand out from other accountants.

JM Logistics Ltd

For years I had an accountant who simply terrified me. I knew little about the intricacies of accountancy and I felt he used that as his advantage against me. After many sleepless nights I moved my business two years ago to AP Accounting Services because they were recommended to me by a friend in a similar business. I met with Ola who explained my tax situation in a very understandable way. I find all of their staff extremely professional, very approachable and above all feel that they understand my needs as a businesswoman. I cannot recommend their services enough. So if you want to get on with the business of business and 'leave the sums' to the friendly professionals use AP Accounting Solutions Services for all of your accounting needs.

LM Fabweld Ltd

AP Accounting Solutions have been providing book keeping and management accounts services for our group of companies for the past two years and I would thoroughly recommend them. Ola is able to deal with the complex inter company relationships that a group structure creates due to her extensive accountancy knowledge.

Will David, Director of Clenergy Ltd.

// Latest News Entries

HMRC A1 Form 29 Dec 2023

Charging your electric company car at home 19 Dec 2023

Two new R&D forms 19 Dec 2023

// Contact Us

The Mill House
Erw Hir
Llantrisant
CF72 8BY

Tel: 01443 238651
Mobile: 07853 222375
Email: info@apaccountingsolutions.com
Web: www.apaccountingsolutions.com

©2026 AP Accounting Solutions Limited. All Rights Reserved. Company No: 08836472.
Aleksandra David is licensed and regulated by AAT under licence number 10141313.
Home | About Us | Help & Support | Latest News | Contact Us