Personal tax changes

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  • Watch out for penalties.
  • We keep up to date with HMRC plans for you.

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November 20, 2013

2014/15 changes to personal tax, national insurance & payroll

Personal tax

The tax-free personal allowance is going to increase to £10,000 from £9,445 in April 2014. The rise in personal allowance will continue to rise each tax year. The higher rate threshold, the amount at which 40% tax is payable, will also increase to £41,865.

National Insurance

Employee class 1 national insurance rate will remain the same as 2013, although the threshold at which they pay will rise from £149 per week to £153 per week. Self employed individuals will pay increased Class 2 NI at £2.75 per week, however the threshold at which Class 4 is payable will rise to £7,956 from £7,755.

Employment Allowance

There is going to be a new £2,000 employment allowance available to employers from 6th April 2014. This can be offset against employers national insurance.

RTI Penalties

Late filing penalties are set to be introduced from 2014/15. They will be (per offence)
• £100 for schemes with 1-9 employees
• £200 for schemes with 10-49 employees
• £300 for schemes with 50-249 employees
• £400 for schemes with 250 or more employees

Whilst these haven’t been confirmed yet in legislation, they are on HMRC’s website which suggests that it is going to go ahead and you should ensure that the systems are in place to avoid these penalties.

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