RATES AND ALLOWANCES FOR 2003/4

Personal allowances for 2003/04 (Subject to any Budget changes)

 

2002/03
£

2003/04
£

Personal allowance (basic)

4,615

4,615

Personal allowance (65-74yr old)

6,100

6,610

Personal allowance (75 or more)

6,370

6,720

Married couples allowance *

5,465

5,565

Married couples allowance

(either spouse aged 75 or more)

5,535

5,635

Married couples allowance

(minimum amount)

2,110

2,150

Income limit

17,900

18,300

* This allowance is given as a 10% credit only where one or both spouses born on or before 5 April 1935.

The tax bands and rates for 2003/04 will be announced in April’s budget. 

National Insurance Contributions for 2003/04

Class 1: Employed Earners

Earnings

Employees

Employer

Up to £89 per week

Nil

Nil

£89.01 and £595 per week

11.0%*

12.8%

Over £595 per week

1.0%

12.8%

* Reduced rate payable by married women and widows with a valid certificate of election increases to 4.85%.

Employees and employers will pay different rates if employee is in a contracted out pension scheme.

Class 2: Self Employed Persons
The weekly contribution remains at £2 per week.  If annual earnings are expected to be less than £4,095 (2002/03 - £4,025) a certificate of exception is available.

Share Fishermen pay a special rate of £2.65 a week (unchanged) and volunteer development workers pay a special rate of £3.85 (2002/03 £3.75).

Class 3: Voluntary Contributions
These are payable at £6.95 per week (2002/03 £6.85). 

Class 4: Self Employed Persons
The contribution rate increases to 8%.  This is payable on earnings between £4,615 and £30,940, plus 1% on earnings above £30,940.