Contractor Paye And National Insurance Contributions
PAYE & NIC
Contractors with Contractors Umbrella Company don't have to worry about working out their taxes - it's all done for them!
Not only does Contractors Umbrella Company calculate what taxes are due, but also pays them over to HMRC on the contractor's behalf.
Contractors Umbrella Company's comprehensive customer service includes the completion of all related forms required by HMRC in relation to your taxes.
Personal Tax Free Allowances 2013
The tables below provides an overview of personal tax allowances for the 2013/14 tax year and compares these figures against the 2012/13 tax year.
Your personal tax allowance is the amount you can earn before tax is deducted from your salary. The figures below provide an annual personal tax allowance, typically your personal tax allowance is split evenly across your wage payments (whether Monthly, weekly, fortnightly etc).
| Personal Allowance | 2012/13 | 2013/14 | Tax Free Allowance Changes |
|---|---|---|---|
| Basic | £8,105 | £9,440 | + £1,335 |
| Aged 65-74 | £10,500 | £10,500 | none |
| Aged 75+ | £10.660 | £10,660 | none |
| Married Couples Allowance ( if born before 6th April 1935) | £7,705 | £7,915 | + £210 |
| Blind Person's Allowance | £2,100 | £2,160 | + £60 |
Income Tax Rates 2013 AKA Income Tax Bands
Income tax rates are the percentage of your salary which is recovered when your earnings cross specific earning thresholds (or Tax Bands). Each Tax Band has a specific Tax Rate.
| Tax Rate | 2012/13 | 2013/14 | Income Tax Rate Changes |
|---|---|---|---|
| Basic rate 20% | £0 -£34,370 | £0 -£32,010 | Basic rate of income tax cut by £2,360 in 2013/14(you pay tax at a lower rate) |
| Higher Rate 40% | £34,371 -£150,000 | £32,011 - £150,000 | Higher rate of income tax cut by £2,360 in 2013/14(you pay tax at a lower rate) |
| Additional Rate 50% | £150,001+ | Additional Rate 50% no longer used after 2012/13, replaced by additional tax rate of 45% in 2013/14 | |
| Additional Rate 45% | not applicable | £150,001+ | Replaces the 50% tax rate in 2013/14 |
National Insurance Contributions (NICS) Rates 2013
National Insurance contributions rates affect the amount of national insurance deducted from your weekly wage, fortnightly wage, monthly wage etc. As with PAYE tax, national insurance contributions are calculated on your annual earnings and deducted equally across each wage payment.
| National Insurance | 2012/13 | 2013/14 |
|---|---|---|
| Lower earnings limit, primary Class 1 | £107 per week | £109 per week |
| Upper earnings limit, primary Class 1 | £817 per week | £797 per week |
| Primary threshold | £146 per week | £149 per week |
| Secondary threshold | £144 per week | £148 per week |
| Upper accrual point | £770 per week | £770 per week |
Umbrella & PAYE Calculator 2018
PAYE Calculator updated for 2018, free salary illustration for Contractors Umbrella Company in comparison to traditional PAYE employee
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