Tax Rates 2013/14 Break down what the taxman gets

It's said there's nothing as certain as death and taxes. Yet while there's no doubt we'll all be taxed, the rates can change rapidly.

This is an updated guide for the tax year starting 6 April 2013, to be used in conjunction with the Income Tax Checker tool.

To check what your take-home pay should be, including pension contributions and student loan repayments, use the free Income Tax Checker.

What's my personal allowance?

Each of us has a 'personal allowance', which denotes the amount we can earn without paying any income tax. If you earn more than your personal allowance, then you pay tax at the applicable rate on all earnings above the personal allowance, but the allowance remains untaxed.

Your specific personal allowance depends on your age and, in some cases, your salary.

If you are married, and one partner is over 75 during the 2013/14 tax year, then you get an extra married couples' allowance.

10% of this allowance is then subtracted from your annual income tax. If you were married before 5 December 2005, it is automatically worked out using the husband's salary. For couples married on or after 5 December 2005, it uses the highest earner's salary.

What income tax rate will I pay?

Once you know your personal allowance, anything extra earned will be subject to income tax. For the 2013/14 tax year, there are three marginal bands, including the 45% 'additional rate' band (and remember your personal allowance starts to shrink once earnings hit £100,000).

Marginal bands mean you only pay the specified tax rate on that portion of salary. For instance, if your salary puts you in the 40% tax band (over PA+£32,010), then you only pay 40% tax on the segment of earnings in that band. For the lower part of your earnings, you'll still pay the appropriate 20% or 0%.

What's national insurance?

In addition to plain old income tax, most UK workers also have national insurance contributions deducted from their pay. These kick in based on your earnings from the age of 16, and you stop paying when you reach state retirement age.

Capital gains tax

Capital gains is the least common tax on income, and for many it won't apply. However, if you sell or give away an asset worth more than £6,000, you could have to pay CGT. It doesn't apply for main homes, cars or lottery/pools winnings, among other things.

Each year, individuals have an annual exemption amount that allows them to receive some gains tax-free. Above this, you pay capital gains tax on all gains.

Paying into a pension?

Pension payments get very complex indeed, yet the basic thing to remember is that most people don't have to pay tax on the money they pay into their pension via their employer's PAYE system. Instead, the tax relief is used to top up your pension contributions.

If you aren't a taxpayer, then you'll be given an extra £20 for every £80 you pay into a pension, until your total contributions reach £3,600.

However, there are some limits on the amount of tax-free contributions you can make (both in a year and over your lifetime).

To check what your take-home pay should be, including pension contributions and student loan repayments, use the free Income Tax Checker