Income Tax and Personal Allowances 2014

The Income Tax and Personal Allowances for 2014 were set at the 2013 budget. The Income Tax and Personal Allowances are used to calculate the amount of Income tax due in the 2014 to 2015 Tax Year, if you are an employee, your income tax will typically be calculated and deducted from your salary as Pay As You Earn (PAYE) along with your other salary deductions like National Insurance, Company Pension and student loans deductions etc.

Income Tax Rates and Bands
BandTaxable IncomeTax Rate
Personal Allowance Up to £10,000 0%
Basic rate £10,001 to £41,865 20%
Higher rate £41,866 to £150,000 40%
Additional rate over£150,001 45%
Dividend rates
10% Dividend ordinary rate - for dividends otherwise taxable at the basic rate
32.5% Dividend upper rate - for dividends otherwise taxable at the higher rate
37.5% Dividend additional rate - for dividends otherwise taxable at the additional rate
Savings rates
10% Starting rate for savings
20% Savings basic rate
£2,880 Starting rate limit for savings
40% Savings higher rate
45% Savings additional rate
Default rates
20% Default basic rate
40% Default higher rate
45% Default additional rate
Special rates for trustees' income
20% Up to 20%, depends on the type of income
45% Trust rate
38.1% Dividend trust rate
Income tax allowances
£10,000 Personal allowanceNo longer seperate age allowance from 2016
£100,000 Income limit for personal allowance
£27,000 Income limit for Married couple's allowance
£0 Marriage allowance
£8,165 Maximum amount of married couple's allowance
£3,140 Minimum amount of married couple's allowance
£2,230 Blind person's allowance
£0 Dividend allowance
£1,000 Personal savings allowance for basic rate taxpayers
£500 Personal savings allowance for higher rate taxpayers
Class 1 NICs: Employee and employer rates and thresholds (£ per week)
£5,772 Weekly Lower Earnings Limit (LEL)
£7,956 Weekly Primary Threshold (PT)
£7,956 Weekly Secondary Threshold (ST)
£41,860 Weekly Upper Earnings Limit (UEL)
£41,860 Weekly Upper Secondary Threshold for under 21s
£41,860 Weekly Apprentice Upper Secondary Threshold (AUST) for under 25s
£2,000 Employment Allowance (per employer)
Employee's (primary) Class 1 contribution rates
0% Below LEL
0% LEL - PT
12% PT- UEL
2% Above UEL
Married woman's reduced rate for (primary) Class 1 contribution rates
5.85% Weekly earnings from between the PT and UEL
2% Weekly earnings from above UEL
Employer's (secondary) Class 1 contribution rates
0% Below ST
13.8% Above ST
Employer's (secondary) Class 1 contribution rates for employees under 21
0% Below UST
13.8% Above UST
Employer's (secondary) Class 1 contribution rates for Apprentices under 25
0% Below AUST
13.8% Above AUST
Class 2 NICs: Self-employed rates and thresholds (£ per week)
£5,885 Small Profits Threshold (SPT)
0% Below SPT
2.8% Above SPT
3.4% Special Class 2 rate for share fishermen
5.55% Special Class 2 rate for volunteer development workers
Class 3 NICs: Other rates and thresholds (£ per week)
13.9% Voluntary contributions
Class 4 NICs: Self-employed rates and thresholds (£ per year)
£8,060 Lower Profits Limit (LPL)
£42,385 Upper Profits Limit (UPL)
0% Below LPL
9% LPL to UPL
2% Above UPL
Working tax credit
£1,960 Basic element
£2,010 Couple and lone parent element
£810 30 hour element
£2,970 Disabled worker element
£1,275 Severe disability element
Childcare element of the working tax credit
£9,100 Maximum eligible cost for one child
£15,600 Maximum eligible cost for two or more children
70% Percentage of eligible costs covered
Child tax credit
£545 Family element
£2,780 Child element
£3,140 Disabled child element
£1,275 Severely disabled child element
Income thresholds and withdrawal rates
£6,420 Income threshold
41% Withdrawal rate (per cent)
£16,105 First threshold for those entitled to child tax credit only
£2,500 Income rise disregard
£2,500 Income fall disregard
Child benefit
£1,066 Eldest/only child
£704.60 Other children
£850.20 Guardians allowance
Tax free savings accounts
£15,000 Individual Savings Account (ISA) subscription limit
£4,000 Junior ISA subscription limit
£4,000 Child Trust Fund (CTF) subscription limit
Fuel benefit and van benefit charge
£21,700 Car fuel benefit charge multiplier
£581 Van fuel benefit charge
£3,090 Van benefit charge
Student Loans
£17,494.88 Student Loan, Plan 1, Earning threshold:
9% Student Loan, Plan 1, Rate
£20,999.68 Student Loan, Plan 2, Earning threshold:
9% Student Loan, Plan 2, Rate

You can calculate the salary after tax in 2014 using the 2014 Salary Calculator