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.
If you would like Tax Advantage to help with your taxes please use the contact form and we will provide you with a no obligation quote.
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||2013/14||2014/15|
|Personal Allowance born after 5th April 1948||9,440||10,000|
|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||10,500|
|Personal Allowance born before 6th April 1938||10,660||10,660|
|Married Couples Allowance, born before 6th April 1935||7,915||8,165|
|Age allowance income limit||26,100||27,000|
|Minimum Married Couples Allowance||3,040||3,140|
|Blind Persons Allowance||2,160||2,230|
- 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 to those born before the 6th April 1935, the allowance is given at 10%
|Income Tax Rates||2013/14||2014/15|
|Savings starting rate at 10%||£0-2,790||£0-2,880|
|Basic rate at 20%||£0-£32,010||£0-£31,865|
|Higher rate at 40%||£32,011 -£150,000||£31,866 – £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||2013/14||2014/15|
|Primary Class 1 Lower earnings limit||109||111|
|Primary Class 1 Upper earnings limit||797||805|
|Upper accrual point||770||770|
|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%|
|Employers contract out rebate on money purchase schemes||N/A||N/A|
|Class 2 small earnings exception||5,725||5,885|
|Class 4 lower profit limit||7,755||7,755|
|Class 4 upper profit limit||41,450||41,865|
|Class 4 above upper profit limit||2%||2%|