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.

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4 Comments to 2014 Budget

  1. When are you going to put in the new threshold for higher rate? Would like to check my calculations. Thanks

  2. Adam on March 19th, 2014
  3. Hi Adam,
    The new threshold (£41,865 for those with the standard personal allowance), taking effect from next month, has already been applied. Make sure that 2014/15 is selected in the “Tax Year” drop-down to see these figures. The further increase from April 2015, to £42,285, will be applied once all the other details of the 2015/16 tax year are available (which will probably be in early 2015).

  4. admin on March 20th, 2014
  5. A lot of people earn a little extra cash from hobbies or selling things on ebay and the like.

    I’d love to see an ‘additional’ income field (profit) added to the calculator to roughly work out tax and national insurance liability.

  6. Mike on September 20th, 2014
  7. Hi Mike,
    Thanks for the suggestion! In fact, our sister site Employed and Self Employed has a calculator designed for exactly this – just click on the “Employed and Self Employed Calculator” button. There is also a simplified calculator for if you are only self employed, and a Limited Company calculator if you run your business that way.
    I hope you find it useful!

  8. admin on September 23rd, 2014

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