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Tax Rates 2012-2013

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Tax Rates 2012-2013

Income tax rates and allowances

 

Taxable Income
£
Basic rate band
£34,370
Basic tax rate
20%
Dividend ordinary rate
10%
Savings rate band
£2,710
Savings rate
10%
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:  
 
Personal allowances:  
 
Age under 65*
£8,105
Age 65-74**
£10,500
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 

 

Class 1: 

 
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%
Above £817
2%
   
 
Employees' contracted out rate rebate
1.40%
   
 
Earnings per week:
Employer NIC rate (secondary)
Below £144
0%
Above £144
13.8%

 

* 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%
Above £42,475
£2.65pw
2%

 

* 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*:  
 
Basic element
£1,920
Couple and lone parent element
£1,950
30 hour element
£790
Disabled worker element
£2,790
Severe disability element
£1,190
Childcare element:  
 
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:  
 
Family element
£545
Child element
£2,690
Disabled child element
£2,950
Severely disabled child element
£1,190
   
 
Income thresholds and withdrawal rates**:  
 
Income threshold
£6,420
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

 

Child Benefit:  
 
First child rate
£20.30
Rate for additional children
£13.40
Guardian's Allowance:
£15.55

 

 

2012/13 tax-free savings accounts

 

Individual Savings Account (ISA) subscription limit:  
 
Overall limit
£11,280
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

 

 

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