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