Posts Tagged ‘national insurance’

2012 – 2013 UK tax graphs for income tax and NI

Wednesday, April 18th, 2012

I’ve been publishing UK tax graphs since the 2008-2009 tax year. It is easy to find tax information in the official government tables, but it is very hard to find simple graphs that show that the numbers mean in simple terms which is why I make these graphs. I missed out last years graphs so this year I will include the 2011-2012 and the 2012-2013 tax years. The 2010-2011 tax year is also included for comparison.

First of all here is an overview of the overall percentage of tax paid for salaries up to £200,000. The percentage for the 2011-2012 and 2012-2013 years jump mainly because of the national insurance rate increasing from 1% to 2% for earnings above the upper earnings limit.

percent tax vs gross salary 2012 2013 2

At the more average end of the salary scale the change between the years is more affected by the increase in the personal allowance.

percent tax vs gross salary 2012 2013 1

Here is a closer look at the income tax. It shows that the changes between these years have been fairly minor. There is always a lot of talk about tax changes in the budget, but in reality things don’t change much.

income tax 2012 2013 2

income tax 2012 2013 1

The national insurance graphs show a larger change for higher earners since the 2011-2012 tax year because of the 1% rate increase.

national insurance graph 2012 2013 2

national insurance graph 2012 2013 1

And finally two charts showing the absolute change in pounds paid as tax during these two tax years. These show that taxes for average earners have been decreasing, and taxes for higher earners have been increasing.

uk tax change 1011 1112

uk tax change 1112 1213

More next year…

2010-2011 UK Tax graphs

Tuesday, June 15th, 2010

Straight after putting up the tax graphs for 2009-2010, I’m putting up the tax graphs for this tax year. This time the graphs are better, and some of them include a comparison line with the previous year’s figures.

As before I’ll state I’m not an accountant or tax expert so I can’t guarantee their accuracy, but I’ve done my best. The graphs assume that you are getting the default allowances. Let’s start with an overview of how much tax you’ll pay.

2010 2011 total tax graph

The big change for this year is the new higher 50% rate of tax, and the tapering off of your personal allowance once you reach the income limit. For most people this has no impact, it is only once you start getting over £100,000 that your tax will rise. You can clearly see the change in tax by comparing the red and blue lines in the graph.

Next is a more visual way of seeing the tax changes. The first slope is where the personal allowance tapers off, and the next one is where the 50% tax band kicks in.

2010 2011 tax changes

Income tax and national insurance

The overall tax you’ll pay is composed of income tax and national insurance. Here are two graphs showing how much of each one you’ll be paying.

2010 2011 income tax graph

2010 2011 national insurance graph

Gross salary vs net salary

Here is a graph showing your gross salary vs your net salary.

2010 2011 gross salary vs net salary graph

And a more zoomed in version which only goes up to £60,000.

2010 2011 gross salary vs net salary graph zoomed

Percentage of tax

And finally I have a graph showing the percentage of tax you pay against your gross salary. You can see that the new tax changes have made the shape more uneven (i.e. more complicated) than in the previous tax year. This is sure to be good news for accountants!

2010 2011 tax vs gross salary

2009 – 2010 UK tax graphs

Thursday, June 10th, 2010

Here are some graphs showing income tax, national insurance, total tax and percentage of tax for the 2009-2010 tax year. I have also included a graph showing how total taxation has changed from the 2008-2009 tax year. If you want tax graphs for the current tax year go to my 2010-2011 tax graphs page.

I’ve done my best to make these accurate; however I’m not a tax expert so I can’t guarantee these are correct. These are therefore just for interest, and not for serious use.

2009-2010 income tax

First up income tax – everyone’s favourite tax!

2009 2010 uk income tax graph

After a short tax free allowance you can see how the basic rate of tax hits, and then the higher rate of tax causes the angle to increase.

2009-2010 national insurance

National insurance follows a different shape as once you reach the higher band the rate drops to 1% rather than increasing.

2009 2010 uk national insurance graph

2009-2010 total tax

This graph combines both the income tax, and national insurance to show the total amount of these taxes that you would be paying.

2009 2010 total tax graph

And here is a version that is more zoomed in – it only goes up to £60,000.

2009 2010 total tax graph zoomed

2009-2010 percentage of tax

Perhaps more interesting than the amount of tax you pay, is the percentage of tax you pay. This graph shows the combined income, and national insurances taxes against gross salary. The dip somewhere after the £40,000 level is due to the national insurance dropping to the 1% rate before the higher rate of income tax kicks in.

2009 2010 uk percentage of gross salary as tax graph

Change in tax from 2008/09 to 2009/10

This final graph shows how the amount of tax you pay has changed from the previous tax year, to the 2009/10 tax year. You can see that the amount of tax to be paid has actually decreased. This is due to the increase in personal allowance for 2009-2010.

0809 0910 tax change graph

2008 – 2009 UK Tax Graphs

Monday, September 1st, 2008

I’ve produced some graphs using data about the 2008 – 2009 UK tax situation (I also have tax graphs for 09/10 and 10/11).

I’ve tried to make them accurate but beware that I’m not a tax expert so there could well be errors. They have been created for interest only, not for serious use.

The first graph is showing how much income tax you pay depending on how much you earn. This graph is based on the standard un-adjusted tax free allowance of £6305, a 20% band for the next £34800 and 40% after that.

income tax 08 09

Next is a similar graph but for national insurance contribution. I’ve used £105 per week as being free from NICs, 11% for £105-£770 per week and 1% after that.

national insurance 08 09

The third graph combines the total of the two to show the total taxation.

total tax 08 09

The final graph shows what percentage of your gross income you pay as tax. The interesting shape is caused by the National Insurance contributions changing to 1% before the 40% tax band kicks in.

percentage of income as tax 08 09

You may spot that when your salary reaches just over £40k the percentage of salary that you pay in tax actually goes down by a very small amount before going back up again.