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Income tax


Tax bands and rates 2015/16 2014/15
Basic rate band £31,785 £31,865
Basic tax rate 20% 20%
Dividend ordinary tax rate 10% 10%
Savings rate band £5,000* £2,880
Savings rate 0% 10%
Higher rate band £31,786 - £150,000 £31,866 - £150,000
Higher tax rate 40% 40%
Dividend higher tax rate 32.5% 32.5%
Additional rate band over £150,000  £150,000
Additional tax rate 45% 45%
Dividend additional tax rate 37.5% 37.5%
Allowances that reduce taxable income
Personal allowances Those born after 5 April 1948 £10,600 £10,000
  Those born after 5 April 1938 and before 6 April 1948 £10,600 £10,500
  Those born before 6 April 1938  £10,660 £10,660
Married couples/civil partners Transferable allowance £1,060 N/A
Blind person's allowance   £2,290 £2,230

Age related allowances are reduced by £1 for each £2 of income above £27,700 (2014/15 £27,000), until the minimum of £10,600 (2014/15 £10,000) is reached.

The minimum personal allowance is reduced by £1 for each £2 of income from £100,000 (2014/15 - £100,000) to £121,200 (2014/15 - £120,000).

Allowances that reduce tax
Married couple's allowance (MCA) Maximum amount £8,355 £8,165
Tax reduction at 10% £816.50 £791.50
Non domicile charge
Applies after UK residence in 7 or
more of the previous 9 tax years
£30,000 £30,000
Applies after UK residence in at least 12 of the previous 14 years £60,000  £50,000 
Applies after UK residence in at least 17 of the last 20 years £90,000  N/A 
Investment tax shelters  

Enterprise investment scheme (EIS) up to

£1,000,000 £1,000,000
Maximum amount for EIS carry back £50,000 £50,000
Income tax relief rate 30% 30%
Seed enterprise investment scheme (SEIS) £100,000 £100,000
Income tax relief  50%  50%
Venture capital trust (VCT) £200,000 £200,000
VCT tax relief rate 30% 30%
Golden handshake maximum tax free £30,000 £30,000
Rent a room - exempt on gross annual rent up to £4,250 £4,250
Construction industry scheme - deduction rate    
Standard rate - registered 20% 20%
Higher rate - not registered 30% 30%

*Savings income falling into the first £5,000 may be taxed at 0% for certain low income earners.

2016 and beyond

the personal allowance for 2016/17 is £11,000 and £11,200 for 2017/18. The basic rate limit is to be increased to £32,000 for 2016/17 and to £32,400 for 2017/18. The higher rate threshold will increase to £43,000 in 2016/17 and to £43,600 in 2017/18.


From 6 April 2016 the amount that is exempt increases to £7,000 from £4,250.

Did you know?

The Treasury is expecting to raise £170.2 billion from income tax (2014/15 - £163.7 billion).

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What our clients say about us


"Steve is more than just an accountant he is an advisor who actually does the job. Rochesters have acted for us now for over 10 years and throughout that period Stephen has made sure that he has kept in touch with us and is up to date with what is happening in the business. This has enabled us to get the best advice we can for tax purposes and for the commercial operation of our business."

Mr Paul Easthope, Joint Managing Director, Eastwood Air Conditioning Limited

"Stephen and his team act for all our interest and throughout that period have resolved problems from the past and endeavour to provide advice for the present and the future. I wish them well."

Mrs June Jones, Financial Director, Express Polythene Limited

"Stephen, Peter and their firm Rochesters have been acting for our group of companies for over 15 years. Throughout that time they have given us a service that has ensured that we have complied with the laws of the land and at the same time provided advice on how to minimise our tax liabilities within the framework of the law. At all times they have shown integrity and a positive attitude to our business."

Mr Stuart Gleghorn, Joint Managing Director, Die-Pat Holdings Ltd

"Rochesters have acted as my accountants, auditors, and business advisers for many years. During that time they have displayed the utmost professionalism across all areas including personal taxation matters. They have provided proactive technical advice and assistance especially in areas of corporate taxation. Stephen and his team are always available at short notice, and I am certain that my business has benefited from my association with them."

Mr Frank Marks from Marks Insurance Consultants Ltd

"Maximum  have worked with Rochester’s now for the last couple of years and find the experience to be a pleasure. The service they provide has been flawless and as we, as a company have grown, the service they have provided has grown with us. I would recommend this company as a strong partner to any business at any stage, whether that be a small start-up business or a fully developed multinational."

Mr Peter McMullan from Maximum Group.Net

Rochesters have acted for over 15 years for the MCP Group and during that time they have carried out their compliance duties with the utmost professionalism and at times provided good sensible advice on taxation.

Mr Stephen Holley, Financial Director, Midland Chromium Plating Holdings Limited

Having been poorly treated by accountants for years, I decided to try and find a different solution. The introduction to Stephen Rochester in 2012 was a breath of fresh air.

He came to me with ideas, asked me questions that made me think and planned a solution both for the short and long term. No other accountant had ever done this before. I knew there and then that A successful partnership would form.

In 2014, the relationships I have with Stephen and the whole of his team at Rochesters are excellent and the service is world class! I have recommended their services to other businesses and friends and will continue to do so in the future!

If you are looking for a professional, proactive accountancy firm that will deliver and assist in the running of your business then look no further than Rochesters!

Mr Warren Groom, Director, Groomfield Recruitment Ltd

IRC Carocelle Limited have benefited from the high level of  professionalism offered by Rochester’s for many years.

Rochester’s personable approach to their client needs is a major factor in the success of the working relationship between our businesses

Stephen Rochester spearheads a vibrant and enthusiastic team of professionals, feeding off his wealth of knowledge and exceptional people skills.

It has been a pleasure dealing with Rochester’s through difficult economic circumstances, their financial strategic support being invaluable in maintaining a strong financial balance sheet for the business.  We look forward to further developing our successful working relationship through brighter economic times ahead.

Mr Stephen Holder from IRC Carocelle Limited


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