As part of your tax review for the tax year 12/13 tax year which ended recently, you should take into consideration the new income tax rates which have now been introduced.
You may be entitled to claim a tax rebate from the 2012/2013 tax year, but should also pay less tax automatically due to changes in the tax free personal allowance.
The current tax year started on the 6 April and from this date the new personal allowance is £9440 replacing the previous £8105.
An average basic rate tax payer could pay in the region of £705 less income tax in this current tax year.
Income Tax Rates
| Income Tax allowances | 2009-10 | 2010-11 | 2011-12 | 2012-13 | 2013-14 |
|---|---|---|---|---|---|
| Personal Allowance | £6,475 | £6,475 | £7,475 | £8,105 | £9,205 |
| Personal Allowance for people aged 65-74 | £9,490 | £9,490 | £9,940 | £10,500 | £10,500 |
| Personal Allowance for people aged 75 and over | £9,640 | £9,640 | £10,090 | £10,660 | £10,660 |
You will often receive a notice of coding which states your new tax code for current tax year. If this tax code is correct you should not overpay income tax. Your tax code will be used by your employer to ensure the correct amount of income tax is deducted each week or month.
