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Income Tax Allowances, Reliefs and Credits

2013/14
£
2012/13
£
Given at marginal rate of income tax
Personal allowance (minimum)9,4408,105
Personal allowance (age 65-74)10,50010,500
Personal allowance (age 75+)10,66010,660
Blind Person's Allowance2,1602,100
Rent-a-room tax free home income*
*restricted to £2,125 if letting jointly
4,2504,250
Relief restricted to 10%
Married couples/Civil partnerships allowance (age under 75 and born before 6th April 1935)N/AN/A
Married couples/Civil partnerships allowance (age 75+)7,9157,705
Married couples/Civil partnerships allowance (minimum)3,0402,960
Income limit for age-related allowances25,40025,400
Personal allowances progressively reduced £1 for £2 income above £100,000  
Child Tax Credit (CTC)
Family element545545
Child element2,7202,690
Disabled child element3,0152,950
Severely disabled child element1,2201,190
Working Tax Credit (WTC)
Basic element1,9201,920
Couples & lone parent element1,9701,950
30 hour element790790
Disabled worker element2,8552,790
Severe disability element1,2201,190
Childcare Element of WTC
Maximum eligible cost for one child£175 per week£175 per week
Maximum eligible cost for two or more children£300 per week£300 per week
Percentage of eligible costs covered70%70%
Withdrawal Rates for CTC & WTC
First income threshold6,4206,420
First income threshold for CTC only15,91015,860
First withdrawal rate41%41%
Second income threshold40,00040,000
Second withdrawal rate41%41%
Income increase disregarded5,00010,000
Income decrease disregarded2,5002,500

Universal Credit is a new single monthly payment for people in work or out of work. It will be made up of a standard allowance plus other 'elements' - for example for children, childcare, housing and caring. There will also be an element for those with limited capability for work.

If you qualify, your monthly payment will cover everyone in your family who qualifies for support. 'Family' could mean you as a single person for example, or you might also be claiming for a partner and/or children.

How will tax credits and other benefits be affected?
How will tax credits and other benefits be affected?

Universal Credit will eventually replace all of the following:

  • tax credits - both Child Tax Credit and Working Tax Credit
  • income-based Jobseeker’s Allowance
  • income-related Employment and Support Allowance
  • Income Support
  • Housing Benefit
  • Universal Credit won't replace Child Benefit.

Universal Credit will start in April 2013 in the Greater Manchester and Cheshire regions. It will be rolled out across the country from October 2013.

Wherever you live, you don’t need to do anything until the Tax Credit Office tells you to.

The Tax Credit Office will tell you when you can make a claim for Universal Credit, and stop claiming tax credits. You won't claim both at the same time.

It will take up to four years before all tax credits claims are stopped.

Limits for other reliefs
Enterprise Investment Scheme (EIS)30%30%
Maximum Investment1000,0001000,000
EIS capital gains re-investmentUnlimitedUnlimited
Seed Enterprise Investment Scheme (SEIS)
Maximum Investment100,000@50%100,000@50%
Venture Capital Trusts (VCT) @ 30%
Maximum Investment200,000200,000

For further information, or to arrange a meeting, please contact

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