The actual rates of tax, allowances and rates of National Insurance for 2014/15 are detailed on the following page along with comparison tables from 2013/14.
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As a self-employed person the tax and National Insurance you will have to pay to HM Revenue & Customs is different to that of somebody working under PAYE.
|Income Tax Allowances||2014/15||2015/16|
|Personal Allowance born after 5th April 1948||10,000||10,600|
|Income limit for Personal Allowance (see note 1)||100,000||100,000|
|Personal Allowance born between 6th April 1938 and 5th April 1948||10,500||10,600|
|Personal Allowance born before 6th April 1938||10,660||10,660|
|Married Couples Allowance, born before 6th April 1935||8,165||8,355|
|Age allowance income limit||27,000||27,700|
|Minimum Married Couples Allowance||3,140||3,220|
|Blind Persons Allowance||2,230||2,290|
- Personal Allowance is reduced by £1 for every £2 over £100,000 of income.
- Age Allowance is reduced by £1 for every £2 over the ‘age allowance income limit’ however it will not be reduced below the standard Personal Allowance unless your income exceeds £100,000.
- Married couples allowance is only available at least one spouse is born before the 6th April 1935, the allowance is given at 10%
|Income Tax Rates||2014/15||2015/16|
|Savings starting rate at 10% 2014/15 and 0% 2015/16||£0-2,880 (10%)||£0-5,000 (0%)|
|Basic rate at 20%||£0-£31,865||£0-£31,785|
|Higher rate at 40%||£31,866 -£150,000||£31,786 – £150,000|
|Additional rate at 45%||£150,000 +||£150,000 +|
|Dividend Basic rate||10%||10%|
|Dividend Higher rate||32.5%||32.5%|
|Dividend Additional rate||37.5%||37.5%|
|National Insurance Contributions||2014/15||2015/16|
|Primary Class 1 Lower earnings limit||111||112|
|Primary Class 1 Upper earnings limit||805||815|
|Upper Secondary threshold||815|
|Employees Class 1 rate from primary threshold to upper earnings limit||12%||12%|
|Employees Class 1 rate over upper earnings limit||2%||2%|
|Class 1A rate on employer benefits||13.8%||13.8%|
|Contracted out rebate for employees||1.4%||1.4%|
|Married women’s reduced rate from primary threshold to upper earnings limit||5.85%||5.85%|
|Married women’s rate above upper earnings limit||2%||2%|
|Employers secondary Class 1 above secondary threshold||13.8%||13.8%|
|Employers contracted out rebate on salary schemes||3.4%||3.4%|
|Class 2 small earnings exception||5,885||5,965|
|Class 4 lower profit limit||7,956||8,060|
|Class 4 upper profit limit||41,865||42,385|
|Class 4 above upper profit limit||2%||2%|