Tax rates and allowances for 2013/14

Below is a useful summary of the most important tax rates and allowances for the current tax year.

Income tax rates and allowances

Tax bands and rates:
2013/14
Basic rate band £32,010
Basic tax rate 20%
Dividend ordinary tax rate 10%
Savings rate band £2,790
Savings rate 10%
Higher rate band £32,011 – £150,000
Higher tax rate 40%
Dividend higher rate tax 32.5%
Additional tax rate 45%
Dividend additional tax rate 37.5%
Allowances that reduce taxable income:  
Personal allowances:  
Age under 65 £9,440
Age 65-74 £10,500
Age 75 and over £10,660
Blind person’s allowance £2,160
Income limit for personal allowance £100,000
Income limit for personal allowances (born before 6 April 1948) £26,100
   
Married couple’s allowance  
 Maximum amount £7,915
 Minimum amount £3,040

National insurance contributions 2013/14

Class 1 (not contracted out):  Employee per cent (primary)   Employer per cent (secondary)
Lower earnings limit – payable on weekly earnings      
Below £109 (LEL) 0 Below £148 (ST) 0
£109-£149 (PT) 0 Above £148 13.8
£149-£797 (UEL) 12    
Above £797 2    

Self employed national insurance contribution 2013/14

Annual profits (£) a year: Class 2 per week:£ a week Class 4:per cent 
Below £5,725 £0 0%
£5,726 to £7,755 £2.70 0%
£7,756 to £41,450 £2.70 9%
Above £41,450  £2.70 2%

Other national insurance contribution rates

Married women’s reduced rate 5.85%
Special Class 2 rate for share fishermen £3.35pw
Special Class 2 rate for volunteer development workers £5.45pw
Class 3 rate £13.55pw

Working and child tax credit rates and thresholds

Working Tax Credit:  
Basic element £1,920
Couple and lone parent element £1,970
30 hour element £790
Disabled worker element £2,855
Severe disability element £1,220
Childcare element:  
Maximum eligible cost for one child £175pw
Maximum eligible cost two or more children £300pw
Per cent of eligible costs covered 70%
   
Child Tax Credit:  
Family element £545
Child element £2,720
Disabled child element £3,015
Severely disabled child element £1,220
   
Income thresholds and withdrawal rates:  
Income threshold £6,420
Withdrawal rate 41%
First threshold for those entitled to Child Tax Credit only £15,910
Income rise disregard £5,000
Income fall disregard £2,500

Child benefit and guardian’s allowance

Child Benefit:    
First child rate £20.30
Rate for additional children £13.40
Guardian’s Allowance: £15.90

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