UK Tax rates
These rates show the marginal rate. To calculate the tax the income should be sliced and the rates applied to each slice.
Tax on dividend income is based on the net dividend received and takes account of the tax credit. So for say £90 of dividend received this is treated for tax purposes as £100 gross plus a tax credit of £10.
National Insurance is rightly regarded by most as tax. Note that NI does not apply to interest income and dividend income.
Tax thresholds, rates and codes
National minimum wage
The rates below apply from 1 October 2012 and are likely to change again on 1 October 2013.
| Category of worker | Hourly rate from 1 Oct 2012 |
|---|---|
| Aged 21 and above |
£6.19 |
| Aged 18 to 20 inclusive |
£4.98 |
| Aged under 18 (but above compulsory school age) | £3.68 |
| Apprentices aged under 19 | £2.65 |
| Apprentices aged 19 and over, but in the first year of their apprenticeship | £2.65 |
Statutory maternity, paternity and adoption pay
| Type of payment or recovery | 2013-14 |
|---|---|
| Statutory Maternity Pay (SMP) - weekly rate for first six weeks | 90% of the employee's average weekly earnings |
| Statutory Maternity Pay (SMP) - weekly rate for remaining weeks |
£136.78 or 90% of the employee's average weekly earnings, whichever is lower |
| Ordinary Statutory Paternity Pay (OSPP) and Additional Statutory Paternity Pay (ASPP) - weekly rate |
£136.78 or 90% of the employee's average weekly earnings, whichever is lower |
| Statutory Adoption Pay (SAP) - weekly rate | £136.78 or 90% of the employee's average weekly earnings, whichever is lower |
| SMP/OSPP/ASPP/SAP - proportion of your payments you can recover from HMRC | 92% if your total Class 1 NICs (both employee and employer contributions) are above £45,000 for the previous tax year 103% if your total Class 1 NICs for the previous tax year are £45,000 or lower |
Company cars: advisory fuel rates
The rates below apply from 1 March 2013.
| Engine size |
Petrol | LPG |
|---|---|---|
| 1400cc or smaller |
15p | 10p |
| 1401cc to 2000cc |
18p | 12p |
| Bigger than 2000cc |
26p | 18p |
| Engine size |
Diesel |
|---|---|
| 1600cc or smaller |
13p |
| 1601cc to 2000cc |
15p |
| Bigger than 2000cc |
18p |
Employee vehicles: mileage payments for business travel
| Type of vehicle | Rate per business mile 2013-14 |
|---|---|
| Car | For tax purposes: 45p for the first 10,000 business miles in a tax year, then 25p for each subsequent mile. |
| Motorcycle | 24p for both tax and NICs purposes and for all business miles |
| Cycle | 20p for both tax and NICs purposes and for all business miles |