Later today, the Chancellor will deliver his 2014 Budget to parliament, setting out his plans for the next few years. The Budget is the Chancellor’s opportunity to explain his policies and how they will affect the economy as a whole, and also what differences will be felt by ordinary members of the public.

He is likely to make much of the fact that the tax-free personal allowance (how much you can earn without paying income tax) has increased to £10,000 from April 2014, a coalition pledge delivered 1 year early. There is also talk that he might announce plans to raise the threshold for 40% tax (the amount at which you start paying income tax at 40% rather than 20%) in future years. This would probably lower the tax paid by those in middle management positions, say, and those in more senior roles.

The income tax and National Insurance rates which will take effect from 6th April 2014 have already been applied to The Salary Calculator, so you can easily see how your take home pay will be affected by the new tax year. You can also view a side-by-side comparison of 2013 and 2014 so you can see where the differences come from.

Tags: , , , , , , , , ,

None of the content on this website, including blog posts, comments, or responses to user comments, is offered as financial advice. Figures used are for illustrative purposes only.

The Salary Calculator has been updated with the latest tax information which takes effect from 6th April 2014.

There is an increase in the default tax free personal allowance from £9,440 to £10,000, which will reduce the amount of tax due for most taxpayers. Slight increases in the National Insurance thresholds will also help improve the takehome pay for many people.

The most significant change is probably the increase in the repayment threshold for plan 1 student loans from £16,365 per year to £16,910, which will save those repaying their loan nearly £50 over the year. Unfortunately of course, this will just mean it will take longer to repay the loan in the long run but hopefully the extra cash in your pocket will be useful now!

Another significant change this year, which is unlikely to affect any but those who are well paid and nearing retirement, is a reduction in the maximum amount you can put into a pension while still claiming full tax relief – for 2013/14 this limit was £50,000 but from 2014/15 it will be £40,000. If this is likely to affect you, you still have time to make the most of the 2013/14 pension allowance before the end of the tax year!

To see how you will be affected by the new tax rates, go to The Salary Calculator and choose the 2014/15 tax year from the drop-down box. Alternatively, you can view a side-by-side comparison of 2013 and 2014 tax rates.

Tags: , , , , , , , ,

2014 has arrived, and for many people the start of a new year is a time to make a clean break with the past, and move on to new things. Often people join a gym, start a diet (after the excesses of the festive period!) – or look for a new job.

The new job could be a promotion at your current place of work, or a new opportunity elsewhere – and The Salary Calculator can help you as you consider your options. If you’re wondering what a new salary might mean for your monthly take-home, check it out on the take-home pay calculator. If you know how much you need each month and would like to know what kind of salary you should be looking for, try using the required salary calculator.

You might be considering supplementing your income not by getting a new job, but by being self-employed in your spare time. In which case, you can try out the tools at our sister site Employed and Self Employed, which will help you to see how your tax and National Insurance contributions will be affected by your additional income.

If you are making a new start in 2014, best of luck!

Tags: , , , , , , ,

Jobs, Pay As You Earn No Comments

Prompted by a comment from Rob on the original blog post, back from when support for bonus payments was added to The Salary Calculator (original post here), The Salary Calculator has been updated so that you can choose your normal pay period when you enter a bonus. Previously, the calculator assumed that you were paid on a monthly basis, and displayed a normal monthly payslip alongside a payslip including the bonus. Now, you can choose whether you are paid monthly, 4-weekly, 2-weekly or weekly and see a side-by-side comparison of a normal payslip with one including your bonus.

It’s important to note that your employer may not perform their bonus calculations in the same way – sometimes (particularly near the start of the tax year) you may have more tax and NI deducted than predicted by the calculator. Normally these over-deductions are corrected in subsequent payslips.

Head this way for the Salary Calculator with bonus payments!

I’m sure most people will have heard of the shutdown of the US Government which started on 1st October, due to a disagreement about whether or not to raise the “debt ceiling” (in short, the amount of money the government can borrow to pay for things it has already agreed to pay for). As a result of the shutdown a large number of government employees are on unpaid leave or working reduced hours and much government work is not being done.

One impact of this shutdown which may affect British tourists is that a large number of attractions are federally funded – that is, they are operated by the central US Government. An example of this is the National Park Service, which runs National Parks around the country. Since the shutdown began, all National Parks have been closed, preventing tourists from being able to visit. Some of these are what you might expect “Parks” to be, like the natural beauty at Yosemite, but others are famous monuments like the Statue of Liberty. Tourists are finding that even if they bought a ticket before the shutdown, on scheduled tours for places like the island of Alcatraz or Pearl Harbor, they have not been able to make the visit as planned.

For those who have booked a short holiday to the States, waiting until the shutdown reaches its conclusion and the parks reopen is not an option. If you find yourself in such a position, you can investigate other tourist attractions which may still be open. For example, while National Parks are closed, State Parks (those operated by the state they are in, rather than by the central government) remain open. I spoke to one couple who had planned to see the giant Californian redwoods at Muir Woods National Park – with the park closed they had to make new plans but were able to go instead to Armstrong Woods State Natural Reserve, which was open as usual, and see the trees they had hoped to see!

Tags: , , , , , ,

Economy, Foreign Currency No Comments

Sponsored Links

Close X

This website uses cookies - for more information, please click here.