2012/13 Tax rates and allowances
Income tax rates and allowances
|Basic rate band||£34,370|
|Basic tax rate||20%|
|Dividend ordinary rate||10%|
|Savings rate band||£2,710|
|Higher rate band||£34,371 - £150,000|
|Higher rate tax||40%|
|Dividend higher rate tax||32.50%|
|Additional rate band||Over £150,000|
|Additional rate tax||50%|
|Dividend additional rate tax||42.50%|
|Allowances that reduce taxable income:|
|Age under 65*||£8,105|
|Age 75 and over**||£10,660|
|Blind person's allowance||£2,100|
|Allowances that reduce tax:|
|Married couple's allowance (MCA)***:|
|Age 78 and over||£7,705|
|Tax reduction at 10%||£770.50|
*The minimum personal allowance is reduced, by £1 for each £2 of income from £100,000 to £116,210, irrespective of age.
**Age related allowances are reduced by £1 for each £2 of income above £25,400 until the non-age related personal allowance of £8,105 is reached.
***The age for MCA is of the elder spouse or civil partner. The loss of tax reduction is 10p for each £2 of income above £25,400 until the minimum of £296 is reached.
2012/13 national insurance rates
|Earnings per week:||Employee NIC rate (primary):|
|Below £107 (lower earnings limit LEL)||0%|
|£107 to £146 (primary threshold PT)*||0%|
|£146 to £817 (upper earnings limit UEL)||12%|
|Employees' contracted out rate rebate||1.40%|
|Earnings per week:||Employer NIC rate (secondary)|
* 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.
2012/13 self employed national insurance contribution rates
|Annual profits (£) a year*:||Class 2**:||Class 4:|
|Below £5,595 (SEE)***||£0pw||0%|
|£5,595 to £7,605 (LPL)||£2.65pw||0%|
|£7,605 to £42,475 (UPL)||£2.65pw||9%|
* 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 £2.65 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.
2012/13 other national insurance contributions rates
|Married women's reduced rate*||5.85%|
|Special Class 2 rate for share fishermen||£3.30pw|
|Special Class 2 rate for volunteer development workers||£5.35pw|
|Class 3 rate**||£13.25pw|
*Married women's reduced rate is paid only by maried 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.
2012/13 working and child tax credit rates and thresholds
|Working Tax Credit*:|
|Couple and lone parent element||£1,950|
|30 hour element||£790|
|Disabled worker element||£2,790|
|Severe disability element||£1,190|
|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:|
|Disabled child element||£2,950|
|Severely disabled child element||£1,190|
|Income thresholds and withdrawal rates**:|
|Withdrawal rate (per cent)||41%|
|First threshold for those entitled to Child Tax Credit only||£15,860|
|Income rise disregard||£10,000|
|Income fall disregard||£2,500|
* As announced in the June Budget 2010, the 50 plus element of the Working Tax Credit will be removed from April 2012.
** As announced in the June Budget 2010, the family element of the Child Tax Credit will taper immediately after the child element from April 2012.
2012/13 child benefit and guardian's allowance
|First child rate||£20.30|
|Rate for additional children||£13.40|
2012/13 tax-free savings accounts
|Individual Savings Account (ISA) subscription limit:|
|of which cash||£5,640|
|of which stocks & shares||£11,280|
|Junior ISA subcription limit:||£3,600|
|Child Trust Fund (CTF) subscription limit:||£3,600|
Air passenger duty (APD)
|APD distance bands||APD rates (£ per passenger from 1 April 2012)|
|Miles from UK||Reduced rate*||Standard rate**|
|Band A (0-2000)||£13||£26|
|Band B (2001-4000)||£65||£130|
|Band C (4001-6000)||£81||£162|
|Band D (over 6000)||£92||£184|
* In lowest class of travel
** In other than lowest class of travel