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Low Earners Entitled to Working Tax Credit

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If you are on a low income then you may be entitled to working tax credit from the government to top up your earnings. You do not have to have children to qualify for working tax credit as there is credit available to you if you work a minimum number of hours a week and also earn below a certain threshold.

If you are single and work more than 30 hours a week and your income is less than £13,000 a year (for 2013/14) then you may be entitled to working tax credits. If you are part of a couple or you have children then the earnings limits are higher than this.

Check out if you are entitled to working tax credits at the HMRC website. Many people do not realise that they are entitled to this which could make all of the difference in enabling you to pay your bills etc.

Personal Allowance News

Married Couple’s Allowance Back on the Cards

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David Cameron has confirmed that he will put on the table a proposal for a new married couple’s tax allowance before the next general election.

The previous married couple’s allowance was abolished by Labour’s Gordon Brown in 1999 but David Cameron wishes some kind of new allowance to be introduced to help in particular those couples where one party works and the other does not – the allowance would be transferable. It was set out in the Conservative Party manifesto and David Cameron wants to stick to this promise, even though the Liberal Democrats are against it.

Get further info on the Daily Mail website.

Tax Rates, UK Budget

Tax Changes in the 2013 Budget

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A number of changes were announced by the Chancellor George Osborn yesterday, but there were only a couple of changes that affected UK tax allowances.

Key Points from the UK Budget 2013 with regard to UK Tax Allowances:

The plan was always to increase the personal allowance to £10,000 by 2015 but this has now been brought forward by a year and the £10,000 UK tax allowance will now be effective from 6 April 2014. This is the amount that people can earn before being charged any income tax. However, National Insurance contributions are still payable on earnings over £7,606 at the rate of 12%.

Corporation tax will decrease from April 2015 to 20% from the previous rate of 21%, which in itself is payable from April 2014. In fact the rate has been reduced significantly from the 28% it is in 2012/13 to 24% in 2013/14, giving the UK one of the lowest rates of corporation tax.

 

 

 

Tax Rates

Inheritance Tax Remains Static

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On 6th April 2009 the Inheritance Tax threshold was increased to £325,000. it had been increasing steadily over a number of years since there was consternation among the general public that the level of the allowance would mean that the majority of people who had houses of a decent size would be impacted by the tax.

However, once it reached the level of £325,000 the amount remained static and there is no plans to increase it until at least after 5 April 2015.