Tax Information

Income Tax

Income Tax Rates
2014-2015
%
2013-2014
%
2012-2013
%
2011-2012
%
Starting rate for savings
10
10
20
20
Basic tax rate
20
20
20
20
Higher tax rate
40
40
40
40
Additional tax rate
45
45
50
50
Tax on dividends at Basic Rate
10
10
10
10
Tax on dividends at Higher Rate
32.50
32.50
32.50
32.50
Tax on dividends at Additional Rate
42.50
42.50
42.50
42.50
Starting rate band for savings 10%
£0 –
£2,880
£0 –
£2,790
£0 –
£2,710
£0 –
£2,560
Basic rate band 20%
£0 –
£31,865
£0 –
£32,010
£0 –
£34,370
£0 –
£35,000
Higher rate band 40%
£31,866 to £150,000
£32,011 to £150,000
£34,371 to £150,000
£35,001 to £150,000
Additional rate band 45%
Above £150,000
Above £150,000
Additional rate band 50%
Above £150,000
Above £150,000

Personal Allowances

Personal allowances
2014-2015
 
2013-2014
 
2012-2013
 
2011-2012
 
Standard payroll tax code
1000L
944L
810L
747L
Personal allowance (1)
£10,000
£9,440
£8,105
£7,475
– People born between 6/4/38 & 5/04/48 (1)(2)
£10,500
£10,500
n/a
n/a
– People born before 6/4/38 (1)(2)
£10,660
£10,660
n/a
n/a
Income limit for Personal Allowance
£100,0000
£100,0000
£100,0000
£100,0000
Maximum Married Couples Allowance – Born before 6/4/35
£8,165
£7,915
n/a
n/a
Income limit for those birn before 6/04/48
£27,000
£26,100
n/a
n/a
Min amount of Married Couples Allowance
£3,140
£3,040
£2,960
£2,800
Blind person’s allowance
£2,230
£2,160
£2,100
£1,980
Note 1: The Personal Allowance reduces where income is above £100,000 by £1 for every £2 of income above the £100,000 limit. This reduction applies to all people irrespective of age or date of birth.
Note 2: These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. This applies until the level of the personal allowance for those aged under 65, or from 2013-14, for those born after 5 Apri 1948, is reached. For maried couples allowance this applies until it reaches the minimum amount.
Note3: Tax relief for the Married Couple’s Allowance is given at 10%.

Key Dates

Key dates in 2014 for personal Self Assessment tax payers
31 July 2014 The date by which the second payment on account in respect of 2013/2014 must be paid. Consider reducing if last year’s income has dropped.
31 October 2014 Deadline for submission of a HMRC paper tax return for 2013/2014.
5 October 2014 Deadline for notifying HMRC of new sources of income unless a 2013/2014 tax return has already been issued. Complete form CWF1 for self employment, form SA1 for non self-employed income, or form SA401 for partners.
30 December 2014 Deadline for e-filing the tax return where the tax payer requires the 2013/2014 balancing payment to be collected through next year’s tax code (less than £2,000).
31 January 2015 Deadline for submitting online your 2013/2014 self assessment tax return. It is also the date by which the tax payer will be required to settle the 2013/2014balancing payment and make the first payment on account in respect of 2014/2015.

Capital Gains Tax

Capital Gains Tax
2013-2014
£
2012-2013
£
2011-2012
£
2010-2011
£
Annual exempt amount:
 
 
 
 
 – Individuals etc
£10,600
£10,600
£10,600
£10,100
 – Trustee
£5,300
£5,300
£5,300
£5,050


From 5 April 2011

Capital Gains Tax is charged at a rate of 18% and 28% depending upon your total personal taxable income for that tax year apportioned between the remaining balance of your basic tax band and 28% above after taking into account your annual capital gains tax-free allowance.

Entrepreneur’s Relief available at 10%.


Inheritance Tax

Inheritance Tax
2014-15
£
2013-14
£
2012-13
£
2011-12
£
 No tax charge arises up to:
£325,000
£325,000
£325,000
£325,000
 Balance taxed at 40% above:
£325,000
£325,000
£325,000
£325,000

Tapering relief is given in respect of gifts made between three and seven years before death.
Where tax is payable on lifetime gifts (other than those taxable only because they are made within seven years of death), tax is charged at 20%.

Stamp Duty

Stamp duty Land Tax Rates: Transfers of land and buildings
Residential land in the UK
Non-residential
Disadvantaged Areas
All Other Areas
All Land
 Zero
£0 to £150,000
£0 to £125,000
£0 to £150,000
 1%
over £150,000 to £250,000
over £125,000 to £250,000
over £150,000 to £250,000
 3%
over £250,000 to £500,000
over £250,000 to £500,000
over £250,000 to £500,000
 4%
Over £500,000 to £1m
Over £500,000to £1m
Over £500,000 to £1m
 5%
Over £1 million
Over £1 million
 7%
Over £2 million
Over £2 million

Disadvantaged Area Relief for non-residential land transactions ended on 17 March 2005. First time buyer zero rate extended to £250,000 applied from 25 March 2010 to 24 March 2012 inclusive.
SDLT on new leasehold properties
NPV of total rent
Residential
NPR of premium
Non-residential
 Zero
£0 to £125,000
£0 to £150,000 (rent < £1K)
 1%
Over £125,000
£0 to £250,000 (rent > £1K)
 3%
Over £250,000 to £500,000
 4%
Over £500,000

An additional charge to SDLT arises on annual rents greater than £150,000) on non-residential leases. The rules are too complex to reproduce in full here. Please contact us to discuss further.

National Insurance Contributions

National Insurance
Class 1
2014-2015
£
2013-2014
£
2012-2013
£
Class 1
Men over 65, Women over 60, and children under 16 do not pay Class 1 contributions.
Employee’s Earnings Limits
Weekly – Monthly – Yearly
Weekly – Monthly – Yearly
Weekly – Monthly – Yearly
– Lower earnings limit (LEL)
The minimum level of earnings employees need to qualify for benefit including State Pension.
£111 – £481 – £5,772
£109 – £472 – £5,668
£107 – £464 – £5,564
– Primary threshold (PT)
The level of earnings above which employees Class 1 contributions become payable.
£153 – £663 – £7,956
£149 – £645 – £7,748
£146 – £633 – £7,592
– Secondary threshold (ST)
The level of earnings above which employers Class 1 contributions become payable.
£153 – £663 – £7,956
£148 – £641 – £7,696
£144 – £624 – £7,488
– Upper Accrual Point (UAP)
The limit or contracted out rebate relief.
£770 – £3,337 – £40,040
£770 – £3,337 – £40,040
£770 – £3,337 – £40,040
– Upper earnings limit (UEL)
Employees do not pay Class 1 contributions above this level.
£805 – £3,488 – £41,860
£797 – £3,453 – £41,444
£817 – £3,540 – £42,484
Employee’s Class 1 NI rates
 
 
 
– Primary rate from PT to UEL
12%
12%
12%
– Above UEL
2%
2%
2%
Employer’s Class 1 NI rates
 
 
 
– Primary rate from PT to UEL
13.8%
13.8%
13.8%
– Above UEL
2%
2%
2%
Employer’s Class 1A NI rates on B-I-K
13.8%
13.8%
13.8%
National Insurance Class 2
2014-2015
£
2013-2014
£
2012-2013
£
2011-2012
£
Self-employed National Insurance
 
 
 
 
– on annual earnings over
£5,885
£5,725
£5,595
£5,315
– weekly contribution
£2.75
£2.70
£2.65
£2.50
– annual contribution
£143.00
£140.40
£137.80
£130.00
National Insurance Class 3
2014-2015
£
2013-2014
£
2012-2013
£
2011-2012
£
Voluntary contributions:
 
 
 
 
– weekly contribution
£13.90
£13.55
£13.25
£12.60
– annual contribution
£722.80
£704.60
£689.00
£655.20
National Insurance Class 4
2014-2015
£
2013-2014
£
2012-2013
£
2011-2012
£
Self-employed National Insurance on taxable profits between:
 
 
 
 
– Lower limit (LL)
£7,956
£7,755
£7,605
£7,225
– Upper limit (UL)
£41,865
£41,450
£42,475
£42,475
– Rate applied to earnings above LL to UL
9%
9%
9%
9%
– Rate applied to earnings above UL
2%
2%
2%
2%
– Maximum payable
£3,051.81 + 2%
£3,032.55 + 2%
£3,138.30 + 2%
£3,172.50 + 2%

The Authorised Mileage Rates

Mileage Rates to be used for privately owned vehicles from 6th April 2011
First 10,000 miles
Above 10,000 miles
  Cars and vans
45p
25p
  Motorcycles
24p
24p
  Cycles
20p
20p
Mileage Rates to be used for privately owned vehicles before 5th April 2011
First 10,000 miles
Above 10,000 miles
  Cars and vans
40p
25p
  Motorcycles
24p
24p
  Cycles
20p
20p

Compulsory registration for VAT

VAT thresholds and limits
Registration
threshold
Deregistration
limit
from 1 April 2013
£79,000
£77,000
 01.04.12 to 31.03.13
£77,000
£75,000
 01.04.11 to 31.03.12
£73,000
£71,000
 01.04.10 to 31.03.11
£70,000
£68,000
 01.05.09 to 31.03.10
£68,000
£66,000

VAT Road Fuel Scale Charges

Quarterly Road Fuel Scale charges for periods after 1 May 2009
VAT fuel scale charge
VAT at 17.5%
VAT exclusive charge
CO2 Band
£(Qtr)
£(Qtr)
£(Qtr)
 120 or less
£126
£18.77
£107.23
 125
£189
£28.15
£160.85
 130
£189
£28.15
£160.85
 135
£189
£28.15
£160.85
140
£201
£29.94
£171.06
145
£214
£31.87
£182.13
150
£226
£33.66
£192.34
155
£239
£35.60
£203.40
160
£251
£37.38
£213.62
165
£264
£39.32
£224.68
170
£276
£41.11
£234.89
175
£289
£43.04
£245.96
180
£302
£44.98
£257.02
185
£314
£46.77
£267.23
190
£327
£48.70
£278.30
195
£339
£50.49
£288.51
200
£352
£52.43
£299.57
205
£365
£54.36
£310.64
210
£378
£56.30
£321.70
215
£390
£58.09
£331.91
220
£403
£60.02
£342.98
225
£416
£61.96
£354.04
230
£428
£63.74
£364.26
235 or above
£441
£65.68
£375.32

 

Monthly Road Fuel Scale charges for periods after 1 May 2009
VAT fuel scale charge
VAT at 17.5%
VAT exclusive charge
CO2 Band
£(Mnth)
£(Mnth)
£(Mnth)
 120 or less
£42
£6.26
£35.74
 125
£63
£9.38
£53.62
 130
£63
£9.38
£53.62
 135
£63
£9.38
£53.62
140
£67
£9.98
£57.02
145
£71
£10.57
£60.43
150
£75
£11.17
£63.83
155
£79
£11.77
£67.23
160
£83
£12.36
£70.64
165
£88
£13.11
£74.89
170
£92
£13.70
£78.30
175
£96
£14.30
£81.70
180
£100
£14.89
£85.11
185
£104
£15.49
£88.51
190
£109
£16.23
£92.77
195
£113
£16.83
£96.17
200
£117
£17.43
£99.57
205
£121
£18.02
£102.98
210
£126
£18.77
£107.23
215
£130
£19.36
£110.64
220
£134
£19.96
£114.04
225
£138
£20.55
£117.45
230
£142
£21.15
£120.85
235 or above
£147
£21.89
£125.11

Van Benefits

Van Benefits
2013-2014
2012-2013
2011-2012
2010-2011
Van Benefit
£3,000
£3,000
£3,000
£3,000
Fuel Benefit
£564
£550
£550
£550

Corporation Tax

Corporation Tax
YE 31.03.14 (2013)
YE 31.03.13 (2012)
YE 31.03.12 (2011)
YE 31.03.11 (2010)
Profits Band
%
Profits Band
%
Profits Band
%
Profits Band
%
 Small Profits Rate
£0 – 300K
20%
£0 – 300K
20%
£0 – 300K
20%
£0 – 300K
21%
 Marginal Relief Limits
£300K – 1.5M
£300K – 1.5M
£300K – 1.5M
£300K – 1.5M
 Main Rate
Above £1.5M
23%
Above £1.5M
24%
Above £1.5M
26%
Above £1.5M
28%
 Small companies fraction
1/80
1/80
3/200
7/400

 

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