2013 Annual Statement


The Chancellor of the Exchequer delivered the 2013 Autumn Statement to Parliament on Thursday 4 December. The following is subject to Parliamentary approval


Income tax The income tax allowances, rates and bands for tax year 2014/15 are set out in the tables.


Income tax allowances


Personal Allowance Up to age 65 Age 65 to 74


Age 75 and over


Income limit for age-related allowances


Married Couple’s Allowance Age 75 or more


Minimum amount of MCA Blind Person’s Allowance


£


10,000 10,500 10,660


27,000


8,165 3,140 2,230


In tax year 2014/15, the pay as you


earn (PAYE) threshold and the higher rate threshold would therefore be, respectively, £193 and £41,865. From April 2015, a spouse or civil


partner who is not liable to income tax or not liable above the basic rate for a tax year will be entitled to transfer £1,000 of their personal allowance to their spouse or civil partner provided that the recipient of the transfer is not liable to income tax above the basic rate.


Income tax rates/bands %


Basic Rate Higher Rate


Additional Rate £


20 0 to 31,865 40


31,866 to 150,000


45 Over 150,000


National insurance contributions The weekly earnings limits and thresholds for Class 1 NICs for 2014/15 are shown in the tables. Notes: l the percentage rates of Class 1 NICs are unchanged from 2013/14 l the UEL has been increased to retain alignment with the income tax higher rate threshold, and l there is no change to the UAP level.


20 PayrollProfessional


Class 1 NICs weekly limits/ thresholds


Lower earnings limit


Primary earnings threshold


Secondary earnings threshold


Upper accrual point Upper earnings limit


Class 2 NICs Weekly rate


Small earnings exception (per year)


Special rate for share fisher- men (weekly)


Special rate for volunteer de- velopment workers (weekly)


Class 3 NICs Weekly rate


LEL PET


SET UAP


UEL £


111 153


153 770


805 £2.75 £5,885 £3.40 £5.55 £13.90 Class 3A NICs will be introduced in


2015 to give those who reach state pension age before 6 April 2016 an opportunity to boost their additional state pension.


Also from 6 April 2015, employers will not be required to pay Class 1 secondary (employer) NICs on earnings paid up to the UEL to any employee under the age of 21. This may require new NICs table letters being introduced.


Company cars and vans For tax year 2014/15: l the car fuel multiplier will increase to £21,700 l the van fuel benefit charge multiplier will increase to £581, and l the benefit charge for vans will increase from 6 April 2014 to £3,090.


A measure will be included in Finance


Bill 2014 to ensure that any payments that the employer requires the employee to make as a contribution for private use of a company car or van need to be made before the end of the tax year in which the


Health-related interventions tax exemption Legislation will be introduced in Finance Bill 2014 to exempt from a charge to income tax the provision of recommended medical treatment to an employee or the payment or reimbursement of the costs of such treatment. An annual cap of £500 per employee will apply. The medical treatment must be recommended by the new Health and Work Service or, alternatively, an occupational health service provided or arranged by an employer, for the purposes of helping an employee return to work after a period of absence due to injury or ill-health. Further requirements will be set out in regulations and these are likely to include a minimum number of consecutive days that the employee must have been certified as unfit for work, the manner of the certification and who can provide it. The Finance Bill 2014 will also exempt the use of non-cash vouchers for the provision of recommended medical treatment from any charge to income tax. Following Royal Assent to Finance Bill


private use was undertaken. This measure will have effect on and after 6 April 2014. In certain circumstances section 114(3) of the Income Tax (Earnings and Pensions) Act 2003 (‘the ITEPA’) disapplies the benefit of a company car or van from being taxed under the appropriate rules. To ensure the benefit is taxed in full, a measure will also be included in Finance Bill 2014 to repeal the section. From 6 April 2016, the appropriate percentage for cars: l without C02 emissions but which have an internal combustion engine with a cylinder capacity of: 1,400 or less, will be 16%; 1,401 to 2,000, will be 27% l registered before 1 January 1998, and which have an internal combustion engine with a cylinder capacity of: 1,400 or less, will be 16%; 1,401 to 2,000, will be 27%; 2,001 or more, will be 37%.


technical


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