Understanding the UK tax rates for the 2013/2014 tax year is essential for contractors, small business owners, and individuals to ensure compliance with the tax system. These tables provide key information on income tax allowances, taxable bands, corporation tax rates, and national insurance contributions applicable during this period.
Tax Rates and Allowances
| Description | 2012-13 (£) | 2013-14 (£) | Increase (£) |
|---|---|---|---|
| Income Tax Allowances | |||
| Personal allowance | 8,105 | 9,440 | 1,335 |
| Capital Gains Tax Annual Exempt Amount | |||
| Individuals etc | 10,600 | 10,600 | 0 |
| Inheritance Tax Threshold | 325,000 | 325,000 | – |
| Pension Schemes | |||
| Annual allowance | 50,000 | 50,000 | – |
| Lifetime allowance | 1,500,000 | 1,500,000 | – |
Note: From the 2010–11 tax year, the Personal Allowance reduces where income exceeds £100,000—by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
Taxable Bands
| Description | 2012-13 (£) | 2013-14 (£) |
|---|---|---|
| Starting Rate | 10% on income up to 2,710 | 10% on income up to 2,790 |
| Basic Rate | 20% on income from 0 to 34,370 | 20% on income from 0 to 32,010 |
| Higher Rate | 40% on income from 34,371 to 150,000 | 40% on income from 32,011 to 150,000 |
| Additional Rate | 50% on income over 150,000 | 50% on income over 150,000 |
Note: From the 2008–09 tax year, the 10% starting rate applies only to savings income. If your non-savings income exceeds this limit, the 10% starting rate for savings will not apply.
The rates available for dividends for the 2013–14 tax year are the 10% ordinary rate, the 32.5% dividend upper rate, and the new dividend additional rate of 37.5%.
Corporation Tax Rates
| Corporation Tax Profits | 2012-13 (£) | 2013-14 (£) |
|---|---|---|
| 0 – 300,000 | 20% | 20% |
| 300,001 – 1,500,000 | Marginal relief | Marginal relief |
| Over 1,500,000 | 24% | 23% |
*Note: From 1 April 2010 onwards, the terminology used to describe some Corporation Tax rates and reliefs changed. This table reflects the new terminology but for ease, the changes are shown below:*
- Small Profits Rate – previously Small Companies’ Rate
- Marginal Relief – previously Marginal Small Companies’ Relief
- Standard Fraction – previously Marginal Small Companies’ Relief Fraction*
National Insurance Rates
| Description | 2012-13 (£) | 2013-14 (£) |
|---|---|---|
| Primary Threshold | £146 per week | £149 per week |
| Secondary Threshold | £144 per week | £148 per week |
| Employees’ Primary Class 1 Rate | 12% on earnings between primary threshold and upper earnings limit; 2% above upper earnings limit | 12% on earnings between primary threshold and upper earnings limit; 2% above upper earnings limit |
| Employers’ Secondary Class 1 Rate | 13.8% on earnings above secondary threshold | 13.8% on earnings above secondary threshold |
| Class 4 Rate | 9% on profits from £7,755 to £41,450 per year; 2% above £41,450 per year | 9% on profits from £7,755 to £41,450 per year; 2% above £41,450 per year |
| Class 4 Lower Profits Limit | £7,755 per year | £7,755 per year |
| Class 4 Upper Profits Limit | £41,450 per year | £41,450 per year |
While the information in these tables is now historical, it remains useful for understanding past tax systems and for comparing how tax rates have evolved over time. If you’re reviewing past financial records or simply curious about previous tax periods, these tables are a valuable reference.
For more detailed information and additional resources, you can visit HMRC.
If you want to see the UK tax tables for 2012/2013, click here.