2012/13 Tax rates and allowances
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
