Tables confirming tax and tax credit rates and thresholds for 2013-14

Table 1.A: Bands of taxable income

2012-13 £ a year 2013-14 £ a year

Basic

1,2

rate (20 per cent) 0 - 34,370 Basic

1,2

rate (20 per cent) 0 - 32,010

Higher

rate (40 per cent) 34,371 - 150,000 Higher

rate (40 per cent) 32,011 - 150,000

Additional rate (50 percent) Over 150,000 Additional rate (45 per cent) Over 150,000

From 2008-09 there is a 10 per cent starting rate for savings income only. The starting rate limit for savings is £2,710 for 2012-13 and will increase

in line with RPI to £2,790 for 2013-14. If an individual's taxable non-savings income exceeds the starting rate limit, then the 10 per cent starting rate

for savings will not be available for savings income

The rates available for dividends for the 2012-13 tax year are the 10 per cent dividend ordinary rate, 32.5 per cent dividend upper rate and the 42.5

per cent dividend additional rate. For the tax year 2013-14, 10 per cent dividend ordinary rate, 32.5 per cent dividend upper rate and the 37.5 per

cent dividend additional rate are available.

Table 1.B: Income tax allowances

£ a year

2012-13 2013-14 Change

Personal Allowance

aged 65 and under 8,105

aged 65-74 10,500

aged 75 and over 10,660

those born after 5 April 1948 9,440 1,335

those born between 6 April 1938 and 5 April 1948 10,500 -

those born before 6 April 1938 10,660 -

Income limit for personal allowance

100,000 100,000 -

Income limit for age-related allowances

25,400

Income limit for personal allowances (born before

6 April 1948)

26,100 700

Married couples’ allowance

maximum amount

7,705 7,915 210

minimum amount

2,960 3,040 80

Blind person’s allowance 2,100 2,160 60

Up to and including 2012-13, the amount of an individual's personal allowance depends upon their age and their income in the tax year. From

2013-14, the amount of an individual's personal allowance depends on their date of birth and their income in the tax year. This change has no effect

on an individual's entitlement to the married couple's allowance or the blind person's allowance.

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

date of birth.

This allowance reduces where the individual’s income is above the income limit (£25,400 for 2012-13, £26,100 for 2013-14) by £1 for every £2

above the income limit until they reach the level of the basic personal allowance.

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

This allowance reduces where the individual’s income is above the income limit (£25,400 for 2012-13, £26,100 for 2013-14) by £1 for every £2

above the income limit until it reaches the minimum amount. Any reduction applies after any reduction to the individual’s personal allowance.

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

Table 1.C: Class 1 National Insurance Contribution rates 2013-14

Employee (primary) Employer (secondary)

Earnings

NIC rate

Earnings

NIC rate

£ a week per cent £ a week per cent

Below £109 (LEL) 0

Below £148 (ST) 0

£109 – £149 (PT)

Above £148 13.8

£149 – £797 (UEL) 12

Above £797 2

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

The contracted-out rebate for primary contributions in 2013-14 is 1.4 per cent of earnings between the LEL and the upper accrual point (UAP) of

£770 for contracted-out salary-related schemes (COSRS). Contracting out for money purchase schemes (COMPS) was abolished on 5 April 2012.

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

No 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.

Table 1.D: Self-employed National Insurance Contribution rates 2013-14

Self-employed NICs

Annual profits

Class 2

Class 4

£ a year £ a week

per cent

Below £5,725 (SEE)

0.00

£5,725 to £7,755 (LPL)

2.70

£7,755 to £41,450 (UPL)

2.70

Above

2.70

The limits are defined as SEE - small earnings exception; LPL - lower profits limit and UPL - upper profits limit.

Class 2 NICs are paid at a weekly flat rate of £2.70 by all self employed persons unless they have applied for a small earnings exception.

The self-employed may apply for exception from paying Class 2 contributions if their earnings are less than, or expected to be less than the level of

the small earnings exception.

Table 1.E: Other NICs rates

2012-13 2013-14

Married Women’s reduced rate (per cent) 5.85 5.85

Special Class 2 rate for share fishermen 3.30 per week 3.35 per week

Special Class 2 rate for volunteer development workers 5.35 per week 5.45 per week

Class 3 rate 13.25 per week 13.55 per week

Married Women’s reduced rate is paid only by married women and certain widows with valid reduced rate elections.

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

Table 1.F: Working and Child Credit Tax rates and thresholds

£ a year

2012-13 2013-14 Change

Working Tax Credit

Basic element 1,920 1,920 -

Couple and lone parent

element

1,950 1,970 20

30 hour element 790 790 -

Disabled worker element 2,790 2,855 65

Severe disability element 1,190 1,220 30

Childcare element

maximum eligible cost for

one child

£175 per week £175 per week -

maximum eligible cost for

two or more children

£300 per week £300 per week -

per cent of eligible costs

covered

70 per cent 70 per cent -

Child Tax Credit

Family element 545 545 -

Child element 2,690 2,720 30

Disabled child element 2,950 3,015 65

Severely disabled child

element

1,190 1,220 30

Income thresholds and

withdrawal rates

Income threshold 6,420 6,420 -

Withdrawal rate (per cent) 41% 41% -

First threshold for those

entitled to Child Tax Credit

only

15,860 15,910 50

Income rise disregard 10,000 5,000 -5000

Income fall disregard 2,500 2,500 -

Table 1.G: Child Benefit and Guardian’s Allowance

£ a week

2012-13 2013-14 Change

Child Benefit

First child rate 20.30 20.30 -

Rate for additional children 13.40 13.40 -

Guardian’s Allowance

15.55 15.90 35

Table 1.H: Tax-free Savings Accounts

£ a year

2012-13 2013-14

Individual Savings Account (ISA)

subscription limit

Overall limit 11,280 11,520

of which cash 5,640 5,760

of which stocks and shares 11,280 11,520

Junior ISA subscription limit

3,600 3,720

Child Trust Fund (CTF) subscription limit

3,600 3,720

Table 1.I: Fuel Benefit Charge

Company Car Tax Fuel Benefit Charge 2012-13 2013-14

Car Fuel Benefit Charge Multiplier £20,200 £21,100

Van Fuel Benefit Charge £550 £564

Table 1.J: Air Passenger Duty (APD)

APD distance bands £ a year

(£ a passenger from 1 April 2013)

Miles from UK Reduced rate

(in lowest class of travel)

Standard rate

(in other than lowest

class of travel)

Higher rate

Band A (0-2000) £13 £26 £52

Band B (2001-4000) £67 £134 £268

Band C (4001 – 6000) £83 £166 £332

Band D (over 6000) £94 £188 £376

To apply to aircraft with an authorised take off weight of 20 tonnes or more, authorised to seat less than 19 passengers.