Changes to PAYE and NIC Rates and Allowances from 6th April 2014

PAYE

The standard personal allowance (for people aged under 65) is to increase from £9,440 to £10,000.
The Basic Rate Limit has been reduced from £32,010 to £31,865 so that higher rate payers don't benefit from the personal allowance increase.

Bandwidth	From	To	Rate (%)	Basic Rate Band
0	0.01	10,000.00	00.00	No
31,865	10,000.01	41865.00	20.00	Yes
150,000	41,865.01	150,000.00	40.00	No
Excess	150,000	Excess	45.00	No

The effect of the extra £560 added on to the personal allowance is a £112 saving per year (20% of £560).

The Personal Allowance reduces where the income is above £100, 000 - by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. The Personal Allowance for people aged 65 and over (up to and including 2012-13) and born before 6 April 1948 (from 2013-14) can be reduced below the basic Personal Allowance where the income is above £100,000.
Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent.

National Insurance contributions - rates and allowances

£ per week	2013-14	2014-15
Lower earnings limit, primary Class 1	£109	£111
Upper earnings limit, primary Class 1	£797	£805
Upper accrual point	£770	£770
Primary Threshold	£149	£153
Secondary Threshold	£148	£153
Employees' primary Class 1 rate between primary threshold and upper earnings limit	12%	12%
Employees' primary Class 1 rate above upper earnings limit	2%	2%
Employer's Class 1 Rate	13.8%	13.8%