Tax & NI Information

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Income Tax

Personal allowances and reliefs
Personal Allowances 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012 2010/2011 2009/2010
£ £ £ £ £ £ £ £
Aged under 65* 10,600 10,000 9,440 8,105 7,475 6,475 6,475
Born between 6 April 1938 and 5 April 1948 10,600 10,500 10,500 - - - -
Aged 65-74 - - - 10,500 9,940 9,490 9,490
Born before 6 April 1938 10,660 10,660 10,660 - - - -
Blind person's allowance. 2,290 2,230 2,160 2,100 1,980 1,890 1,890
75 & older
Maximum 8,355 8,165 7,915 7.705 7,295 6,965 6,965
Minimum 3,220 3,140 - - - - -
Age Allownace & Limit
MCA reduced by £1 for every £2 exceeding limit. 27,700 27,700 26,100 25,400 24'000 22,900 22,900
Rent a room relief 4,250 4,250 4,250 4,250 4,250 4,250 4,250

Personal allowance restriction from 2010/12

The personal allowance is restricted by £1 for every £2 of an individual's (adjusted net income Uprivate-client-a-estate­ planninq/1448-adjusted-net -income) above £100,000.

** Transferable allowance: a spouse or civil partner who is not liable to income tax above the basic rate may transfer £1,060 of their unused personal allowance to their spouse/civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate. Taxpayers have 4 years in which to make the election.

Income Tax Rates

Income Tax Rates
Rate % 2015/2016 2014/2015 2013/2014 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009
Basic* 20% £0- £31,785 £0 to £31,865 £0 to £32,010 £0 to £34,370 £0 to £35,000 £0 to £37,400 £0to£37,400 £0 to34,600
Higher 40% £31,786 to £150,000 £31,866 to £150,000 £32,011 to £150,000 £34,370 to £150,000 £35,001 to £150,000 £37,401 to £150,000 37,401 and above 34,601 and above
Top 45% £150,000 + £150,000 + £150,000 + - - - n/a n/a
Top 50% - - - £150,000 + £150,000 + £150,000 + n/a n/a

*Starting rate band

*Starting rate band
A starting rate applies to savings income up to:
£5,000 2015/16- rate 0% £2,880 2014/15- rate 10% £2,790 2013/14 "" £2,710 2012/13 £2,560 2011/12 £2,440 2010/11 " " £2,320 2008/09 to 2009/10

This band is not available if taxable non-savings income also exceeds this band. See Tax on interest (/private-client-a­ estate-planning/527-tax -on-interest)for worked examples.

Note restriction on personal allowances when income is in excess of £100,000 from 2010/11 on.

Child benefit claimants

Commencing on 7 January 2013 the High Income Child Benefit Tax Charge provisions will claw back Child Benefit payments when a claimant or their partner's income exceeds £50,000.

Tax rate & effective tax rate on dividends
Rate 2013/14 to 2015/16 2012/13 2011/12 2010/11 2009/10 2008/09
Top tax rate 45% 50% 50% 50% 40% 40%
Dividend rate 37.5% 42.50% 42.50% 42.5% 32.5% 32.5%
Effective rate* 30.55% 36.11% 36.11% 36.11% 25% 25%
Higher tax rate 40% 40% 40% 40% - -
Effective rate* 25% 25% 25% 25% - -

*For Example: if an individual who is a top rate tax payer receives a dividend of £20,000 in 2013/14 (dividends are paid net of 10% tax), he will face a tax liability of £6,111 on the net dividend.

Rates For Trustees Income

Special rates for trustees income
Rate 2013/14 to 2015/16 2012/13
Standard rate on first £1,000 of income which would otherwise be taxed at the special rate for trustees. Up to 20% depending on type of income. Up to 20% depending on type of income.
Trust rate 45% 50%
Dividend trust rate 37.5% 42.5%

Pensions

Pensions- higher rate restrictions
Contribution limits From 2014/15 on 2011/12 to 2013/14 To 2010/11
Annual allowance £40,000 £50,000 £215,000
Lifetime allowance £1.25 million £1.5 million £1.8 million

National Minimum Wage

The national minimum wage (NMW) increases annually in October, there are different rates (per hour).

For workers aged 21 years (22 up to 30/9/10) and older
For workers aged 21 years (22 up to 30/9/10) and older
£6.70 per hour from 1/10/15.
£6.50 - 1/10/14 to 30/9/15.
£6.31 -1/10/13 to 30/09/14.
£6.19 - 1/10/12 to 30/09/13.
£6.08 - 1/10/11 to 30/09/12.
£5.93 - 1/10/10 to 30/09/11.
£5.80 -1/10/09 to 30/09/10.
£5.75 - 1/10/08 to 30/09/09.
£5.52 -1/10/07 to 30/09/08.
£5.35 -1/10/06 to 30/09/07.
£5.05 - 1/10/05 to 30/09/06.
£4.85 - 1/10/04 to 30/09/05.
£4.50 -1/10/03 to 30/09/04.
£4.20 -1/10/02 to 30/09/03.
£4.10 -1/10/01 to 30/09/02.
£3.70 -1/10/00 to 30/09/01.
£3.60 - 1/04/99 to 30/09/00.
Additional Rates For :
For Workers Aged :
workers aged 18-20 years inclusive (18-21 upto 30/09/10)
workers aged 21 years (22 up to 30/09/10) and above, starting a new job with a new employer and doing accredited training (a course approved by the UK Government to obtain a vocational qualification).
£5.13 per hour from 1/10/14
£5.03 per hour from 1/10/13 to 30/09/14
£4.98 per hour from 1/10/11 to 30/09/13
£4.92 per hour from 1/10/10 to 30/09/11
£4.83 per hour from 1/10/09 to 30/09/10.
£4.77 per hour from 1/10/08 to 30/09/09
£4.60 per hour from 1/10/07 to 30/09/08
£4.45 per hour from 1/10/06 to 30/09/07
£4.25 per hour from 1/10/05 to 30/09/06
£4.10 per hour from 1/10/04 to 30/09/05
£3.80 per hour from 1/10/03 to 30/09/04
£3.60 per hour from 1/10/02 to 30/09/03
£3.50 per hour from 1/10/01 to 30/09/02
£3.20 per hour from 1/06/00 to 30/09/01
£3.00 per hour from 1/04/99 to 31/05/00

From 1 October 2004 a minimum wage was introduced for 16 year old who are no longer of compulsory school age and 17 year old. The hourly rate of minimum wage is:

The Hourly Rate of Minimum Wage
Hourly Rate
£3.79 per hour from 1/10/14
£3.72 per hour from 1/10/13 to 30/09/14
£3.68 per hour from 1/10/11 to 30/09/13
£3.64 per hour from 1/10/10 to 30/09/11
£3.57 per hour from 1/10/09 to 30/09/10
£3.53 per hour from 1/10/08 to 30/09/09
£3.40 per hour from 1/10/07 to 30/09/08
£3.30 per hour from 1/10/06 to 30/09/07
£3.00 per hour from 1/10/04 to 30/09/06

An apprentice rate for apprentices under 19 or, 19 and over in the first year of apprenticeship. The hourly rate of minimum wage is:

Rate for Apprentices Under 19
£3.30 from 1/10/15
£2.73 per hour from 1/10/14
£2.65 per hour from 1/10/13 to 30/09/14
£2.65 per hour from 1/10/12 to 30/09/13
£2.60 per hour from 1/10/11 to 30/09/12
£2.50 per hour from 1/10/10 to 30/09/11

All other apprentices are entitled to the NMW for their age.

National Insurance Rates

Rates 2015-16
Employee Rate Band Weekly Earnings Employer Rate Weekly earnings
0% LEL Up to £112 - -
0% - £112to£155 0% £1 to £156
12% - £155 to £815 13.8% Above £156
2% UEL Over £815 - -
Rates: 2014-15
Employee Rate Band Weekly Earnings Employer Rate Weekly earnings
0% LEL Up to £111 - -
0% - £111 to £153 0% £1 to£153
12% - £153 to £805 13.8% Above £153
2% UEL Over £805 - -
Rates 2013-14
Employee Rate Band Weekly Earnings Employer Rate Weekly earnings
0% LEL Up to £109 - -
0% - £109 to £149 0% £1 to£148
12% - £149 to £797 13.8% Above £148
2% UEL Over £797 - -
Rates 2012-13
Employee Rate Band Weekly Earnings Employer Rate Weekly earnings
0% LEL Up to £107 - -
0% - £107 to £146 0% £1 to£144
12% - £146 to £817 13.8% Above £144
2% UEL Over £817 - -
Rates 2011-12
Employee Rate Band Weekly Earnings Employer Rate Weekly earnings
0% LEL Up to £102 - -
0% - £102 to £139 0% £1 to£135.99
12% - £139 to £817 13.8% Above £136
2% UEL Over £817 - -
Rates 2008-09 to 2010-11
Employee Rate Employee Rate Band Weekly Earnings 2010-11 Weekly Earnings 2009-10 Weekly Earnings 2008-09
- - LEL Upto £97 Upto £95 Upto £90
0% 0% - £97.01 to £110 £95.01 to £110 £90.01 to £105
11% 12.8% - £110.01 to £844 £110.01 to £844 £105.01 to £770
1% 12.8% UEL £844+ £844+ £770+

LEL - Lower Earnings Limit
UEL - Upper Earnings Limit

Self Employed (2014/15 - 2015/16)
- 2015-16 2014-15
Type Profits £ Rate Profits £ Rate
Class 2 Flat rate 5,965 £2.80 per week 5,885 + £2.75 per week
Class 4 Up to £8,060 0% Up to 7,956 0%
Class 4 8060 to 42,385 9% 7,956 to 41,865 9%
Class 4 Above 42,385 2% Above 41,865 2%
Self Employed (2008/09 - 2009/10 - 2010/11 - 2011/12 - 2012/13 - 2013/14)
- 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09
Type Profits £ Rate Profits £ Rate Profits £ Rate Profits £ Rate Profits £ Rate Profits £ Rate
Class 2 Flat rate Over 5,725 £2.70 per week Over 5,595 £2.65 per week Over 5,315 £2.50 per week Over 5,075 £2.40 per week Over 5,075 £2.40 per week Over 4,825 £2.30 per week
Class 4 Up to 7,755 0% Up to 7,605 0% Up to 7,225 0% Up to 5,715 0% Up to 5,715 0% Up to 5,435 0%
Class 4 7,755 to 41,450 9% 7,605 to 42,475 9% 7,225 to 42,475 9% 5,716 to 43,875 8% 5,716 to 43,875 8% 5,435 to 40,040 8%
Class 4 Over 41,450 2% Over 42,475 2% Over 42,475 2% Over 43,875 1% Over 43,875 1% Over 40,040 1%

* Share fishermen and volunteer workers are subject to a higher rate.