Tax Rates
Income tax rates
The table below sets out the main rates and rate limits for 2012/13:
| Rate Classification | Salary Range | Tax Rate |
| Basic Rate | £0 - £34,370 | 20% |
| Higher Rate | £34,371 - £150,000 | 40% |
| Additional Rate | Over £150,001 | 50% |
The rates for 2013/14 will be:
| Rate Classification | Salary Range | Tax Rate |
| Basic Rate | £0 - £32,010 | 20% |
| Higher Rate | £32,011 - £150,000 | 40% |
| Additional Rate | Over £150,001 | 45% |
National Insurance Rates
National Insurance contributions are paid by employees to build up their entitlement to certain state benefits, including the State Pension. Contributions paid are dependent upon earnings:
| Earnings Per Month | Percentage Paid | Additional Contribution |
| £646 - £3,354 | 12% Earnings between £646 - £3,354 | none |
| over £3,354 | 12% Earnings between £646 - £3,354 | 2% on earnings > £3,354 |
Payment of contributions cease when State Pension is reached; currently set at 65. Reduced rates of National Insurance apply if you are contracted out of the State Pension Scheme.
Personal Allowance Rates
This is the amount of income you can receive each year without having to pay tax on it. Until you reach the State pension age the personal allowance thresholds are:
| Financial Year | Earnings Threshold |
| 2012-13 | £8,105 |
| 2013-14 | £9,440 |
More information on all of the above rates can be found on the HRMC website http://www.hmrc.gov.uk/.