1. Bands of taxable income and corresponding tax rates

  per cent of income / £ a year  
  2013-14 2014-15
Basic rate 20% 20%
Higher rate 40% 40%
Additional rate 45% 45%
Starting rate for savings income* 10% 10%
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) £2,790 £2,880
Basic rate band £0 - 32,010 £0 - 31,865
Higher rate band £32,011 - 150,000 £31,866 - 150,000
Additional rate band Over £150,000 Over £150,000
*From 2008-09 there is a 10 per cent starting rate for savings income only. 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.

2. Income tax allowances

  £ a year    
  2013-14 2014-15 Change
Personal Allowance      
those born after 5 April 1948 9,440 10,000 560
those born between 6 April 1938 and 5 April 1948 10,500 10,500 -
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) 26,100 27,000 900
Married couple’s allowance (*3)      
maximum amount (*4) 7,915 8,165 250
minimum amount (*5) 3,040 3,140 100
Blind person’s allowance 2,160 2,230 70
*1 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 the individual’s date of birth.
*2 This allowance reduces where the individual’s income is above the income limit by £1 for every £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 reduces where the individual’s income is above the income limit 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.
*5 This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935.

3. National Insurance contribution thresholds

2013-14 £ per week 2014-15 £ per week
Weekly Lower Earnings Limit (LEL) 109 Weekly Lower Earnings Limit (LEL) 111
Weekly Primary Threshold (PT) 149 Weekly Primary Threshold (PT) 153
Weekly Secondary Threshold (ST) 148 Weekly Secondary Threshold (ST) 153
Upper Earnings/Profits Limit (UEL/UPL) 797 (41,450 per year) Upper Earnings/Profits Limit (UEL/UPL) 805 (41,865 per year)
Small Earnings Exception (SEE) 5,725 (per year) Small Earnings Exception (SEE) 5,885
Lower Profits Limit (LPL) 7755 (per year) Lower Profits Limit (LPL) 7956 (per year)
N/A - Employment Allowance 2,000 (per year, per employer)

4. Class 1 National Insurance contribution rates 2014-15

Employee (primary)   Employer (secondary)  
Earnings (*1) NIC rate (*2) Earnings (*1) NIC rate (*3 )
£ a week per cent £ a week per cent
Below £111 (LEL) 0 Below £153 (ST) 0
£111 – £153 (PT) (*4) 0 Above £153 (ST) 13.8
£153 - £805 (UEL) 12    
Above £805 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 the upper accrual point (UAP) of £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 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 2014-15

  Self-employed NICs  
Annual profits (*1) (£ a year) Class 2 (*2) (£ a week) Class 4 (per cent)
Below £5,885 (SEE) (*3) 0.00 0
£5,885 to £7,956 (LPL) 2.75 0
£7,956 to £41,865 (UPL) 2.75 9
Above £41,865 2.75 2
*1 The limits are defined as SEE - small earnings exception; LPL - lower profits limit and UPL - upper profits limit.
*2 Class 2 NICs are paid at a weekly flat rate of £2.75 by all self employed persons unless they have applied for a small earnings exception.
*3 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.

6. Other NICs rates

  2013-14 2014-15
Married Women’s reduced rate (*1) (per cent) 5.85 5.85
Special Class 2 rate for share fishermen £3.35 per week £3.40 per week
Special Class 2 rate for volunteer development workers £5.45 per week £5.55 per week
Class 3 rate (*2) £13.55 per week £13.90 per week
*1 Married Women’s Reduced Rate is paid only by married women and certain widows with valid reduced rate elections.
*2 Class 3 NICs are 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

  £ a year    
  2013-14 2014-15 Change
Working Tax Credit      
Basic Element 1,920 1,940 20
Couple and lone parent element 1,970 1,990 20
30 hour element 790 800 10
Disabled worker element 2,855 2,935 80
Severe disability element 1,220 1,255 35
Childcare element      
maximum eligible cost for one child £175 per week £175 per week 0
maximum eligible cost for two or more children £300 per week £300 per week 0
percent of eligible costs covered 70 per cent 70 per cent 0
       
Child tax credit      
Family element 545 545 0
Child element 2,720 2,750 30
Disabled child element 3,015 3,100 85
Severely disabled child element 1,220 1,255 35
       
Income thresholds and withdrawal rates      
Income threshold 6,420 6,420 0
Withdrawal rate (per cent) 41% 41% 0
First threshold for those entitled to Child Tax Credit only 15,910 16,010 100
Income rise disregard 5,000 5,000 0
Income fall disregard 2,500 2,500 0

8. Child Benefit and Guardian’s Allowance

  £ per week    
  2013-14 2014-15 Change
Child Benefit      
First Child 20.30 20.50 20 pence
Second and subsequent children 13.40 13.55 15 pence
Guardian’s Allowance 15.90 16.35 45 pence

9. Tax-free Savings Accounts

  £ a year  
  2013-14 2014-15
Individual Savings Account (ISA) subscription limit    
Overall limit 11,520 11,880
of which cash 5,760 5,940
of which stocks and shares 11,520 11,880
Junior ISA subscription limit 3,720 3,840
Child Trust Fund (CTF) subscription limit 3,720 3,840

10. Fuel Benefit Charge

Company Car Tax Fuel Benefit Charge 2013-14 2014-15
Car Fuel Benefit Charge Multiplier £21,100 £21,700
Van Fuel Benefit Charge £564 £581

11. Van Benefit Charge

Company Car Tax Van Benefit Charge 2013-14 2014-15
Van Benefit Charge £3,000 £3,090

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