This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government
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 |
