Tax rates
The main tax rates and limits for 2012/13 and 2013/14
Rate or limit | 2012/13 | 2013/14 | Notes |
|---|---|---|---|
| Class 2 NI | £2.65 | £2.70 | Self-employed NI per week |
| Class 2 NI small earnings limit | £5,595 | £5,725 | Exempt from Class 2 NI if annual earnings below limit |
| Income Tax personal allowance | £8,105 | £9,440 | Tax free allowance - age under 65 |
| Basic rate band | £34,370 | £32,010 | Income charged at basic rate |
| Higher rate band start | £34,371 | £32,011 | Starting point for higher rate |
| Higher rate band top | £150,000 | £150,000 | Top of higher rate band |
| Basic rate | 20% | 20% | Tax rate on income in basic rate band |
| Higher rate | 40% | 40% | Tax rate on income in higher rate band |
| Additional rate | 50% | 45% | Tax rate on income exceeding higher rate band |
| Class 4 NI lower profit limit | £7,605 | £7,755 | Self employed charged on profits above this limit |
| Class 4 NI upper profit limit | £42,475 | £41,450 | Charged at a lower level on profits above this limit |
| Class 4 NI rate (1) | 9% | 9% | NI rate between lower & upper limits |
| Class 4 NI rate (2) | 2% | 2% | NI rate on profits above upper limit |
| VAT registration limit | £77,000 | £79,000 | Register if turnover exceeds limit in last 12 months |
| VAT standard rate | 20% | 20% | |
| VAT fraction | 1/6 | 1/6 | VAT element of VAT inclusive amount |
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