We have included the following information for the convenience of visitors to our website. Should you have any queries regarding anything contained here then please do not hesitate to contact us.

Taxable income

Rate

£

%

1 - 2,440

10*

2,441 - 37,400

20*

37,401 upwards

40**

* Only applicable to dividends and savings income.
** Except dividends (10%)
*** Except dividends (32.5%).
Other income taxed first, then savings income and finally dividends.

 Personal Allowances

 

£
Personal allowance

6,475
-(Age 65 -74)

9,490
-(Age 75 or over)

9,640
Married couple's allowance

 
-(Age 75 or over)

6,965
Blind person's allowance
1,890

If income exceeds £22,900 age-related allowances are reduced by 50% of the excess subject to an abatement ceiling.

Pensions Simplification

 
Lifetime Allowance
Annual Allowance
2009/10

£1.75 million

£245,000
2010/11

£1.8 million

£255,000

To be reviewed every 5 years.  

 Tax Credits

£
Working Tax Credit (WTC)
Basic element - max.
1,890
Childcare element
80% of eligible costs to a max. of £175 per week (£300 if two or more children)
Child Tax Credit (CTC)
Child element per child - max.
2,235
Family element
545
Baby addition
545

Reductions in maximum rates 39% of income above £6,420*p.a.

*If only CTC is claimed, the threshold is £15,575 p.a.. The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income.



Car And Fuel Benefits

Company cars 2008/09
CO2 emissions (gm/km) (round down to nearest 5gm/km) % of car's list price taxed Fuel benefit (£16,900 x %)
£
up to 135 15 2,535
140 16 2,704
145 17 2,873
150 18 3,042
155 19 3,211
160 20 3,380
165 21 3,549
170 22 3,718
175 23 3,887
180 24 4,056
185 25 4,225
190 26 4,394
195 27 4,563
200 28 4,732
205 29 4,901
210 30 5,070
215 31 5,239
220 32 5,408
225 33 5,577
230 34 5,746
235 and above 35 5,915

Company cars  

  • For diesel cars add a 3% supplement but maximum still 35%. Euro IV diesel cars registered before 1 January 2006 do not suffer the 3% supplement.
  • Discounts apply to certain environmentally friendly cars.
  • From 2008/09 a new 10% rate applies to non-electric cars with emissions of no more than 120gm/km. Environmentally friendly discounts do not apply to these cars but the diesel supplement does.
  • For cars registered before 1 January 1998 the charge is based on engine size.
  • The list price includes accessories and is subject to an upper limit of £80,000.
  • The list price is reduced for capital contributions made by the employee up to £5,000.

Fuel benefit 

  • The fuel benefit charge is proportionately reduced if provision of private fuel ceases part way through the year.
  • The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Van benefit per vehicle
2008/09 and 2007/08
Van benefit £3,000
Fuel benefit £500
The charges will not apply if a 'restricted private use condition is met throughout the year.

 

HM Revenue & Customs Approved Milage Rates

Miles
Pence per Mile
Cars and vans
  
up to 10,000
40p
over 10,000

25p
Bicyles
20p
Motorcycles
24p

 Corporation Tax

 

Band

Rate
Small companies rate 0 - 300,000

21%
Marginal small companies rate 300,001 - 1,500,000

29.75%
Full rate over 1,500,001

28%
Small companies rate fraction  

7/400

The small companies rate is not available to 'close investment-holding companies'.

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

Capital Allowances

Plant and machinery - Annual Investment Allowance (AIA)
The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long-life assets but not cars, of up to £50,000 p.a. Any costs over the AIA fall into the normal capital allowance pools at either 10% or 20%.

The AIA applies to expenditure incurred on or after 6 April 2008 (1 April 2008 for companies) by all businesses. Special rules apply for accounting periods straddling these dates. The £50,000 limit may need to be shared between certain businesses under common ownership.

Other plant and machinery allowances
The annual rate of allowance is 20% from 6 April 2008 (1 April 2008 for companies). Special rules apply for accounting periods straddling these dates. First year allowances are abolished except a 100% allowance may still be available on certain energy efficient plant and cars.

A 10% rate applies to expenditure incurred on integral features and on long life assets on or after 6 April 2008 (1 April 2008 for companies). Long life asset expenditure brought forward will obtain the 10% rate, with special rules applying for accounting periods straddling these dates.

A temporary 40% first year allowance may be due for certain expenditure exceeding the AIA incurred in the 12 month period beginning on 6 April 2009 (1 April 2009 for companies). A 100% first year allowance may still be available on certain energy efficient plant and cars.

Cars
For expenidture incurred on cars on or after 6 April 2009 (1 April 2009 for companies) costs will generally be allocated to one of the two plant and machinery pools. Cars with CO2 emmissions not exceeding 160gm/km will receive 20% allowances p.a. Cars with CO2 emmissions exceeding 160gm/km will receive a 10% allowance p.a.


Industrial and agricultural buildings and hotels
The annual rate of allowance is 2% (3%) from 6 April 2009 (1 April 2009 for companies). Special rules apply for accounting periods straddling these dates.

Capital Gains Tax Exemptions And Reliefs

 

£
Annual exempt amount

10,100

Balance of gains charged at 18%.

Entrepreneurs Relief For gains arising on or after 6 April 2008, the first £1m of qualifying gains are charged at an effective rate of 10%. Gains in excess of £1m are charged at 18%.


Inheritance Tax

 

Transfers on death

Lifetime transfers
Gross cumulative transfer

Gross rate of tax

%

%
Transfers on or after 6 April 2009
£1 - £325,000

Nil

Nil
£325,001 upwards

40

20

Estate on death taxed as top slice of cumulative transfers in the seven years before death. Most lifetime transfers (other than to discretionary trusts) are potentially exempt, only becoming chargeable where death occurs within seven years.

 

Exemptions

£
Annual

3,000
Small gift

250
Marriage :
- Parent
5,000
- Grandparent
2,500
- Bride/groom
2,500
- Other
1,000
 

 

Transfers on or within seven years of death are chargeable, but the tax is tapered as follows:

 

Years between gift and death

% of full charge

0 - 3

100

3 - 4

80

4 - 5

60

5 - 6

40

6 - 7

20

 

National Insurance Contributions

Class 1 (employed) contracted in
Weekly earnings
Employer
Employee
Up to £110
Nil*
Nil*
£110.01 - £844
12.8%**
11%**
Over £844
12.8%**
£80.74 +1%***
* Entitlement to contribution-based benefits retained for earnings between £95.01 and £110 per week.
** On earnings above £110.
*** On earnings above £844.

Class 1A (employers)

12.8% on employee taxable benefits

Class 1B (employers)

 12.8% on PAYE Settlement Agreements

Class 2 (self-employed)

 flat rate per week £2.40
small earnings exception p.a. £5,075 p.a.

Class 3 (voluntary)

 flat rate per week £12.05

Class 4 (self-employed)

 8% on profits between £5,715 and £43,875 plus 1% on profits over £43,875

    

Value Added Tax

 

Standard rate

17.5%*
Reduced rate
5%
Annual registration limit

£68,000
Deregistration limit
£66,000
VAT fraction

7/47

* 15% from 1 December 2008 to 31 December 2009

Flat Rate Scheme - allows businesses to calculate their VAT payment as a percentage of their VAT inclusive turnover.
Limits - annual VAT exclusive taxable turnover does not exceed £150,000 and total VAT exclusive annual turnover does not exceed £187,500. Leave on anniversary of scheme where total VAT inclusive annual turnover exceeds £225,000.

Cash Accounting - allows businesses to account for input and output VAT on a paid and received basis.
Limits from 1 April 2007 - where annual VAT exclusive taxable turnover does not exceed £1,350,000. Leave at end of a VAT period where annual VAT exclusive taxable turnover exceeds £1,600,000.

Annual Accounting - allows businesses to smooth out cash flow by paying a set amount, either monthly or quarterly. Only one VAT return due a year.
Limits - where annual VAT exclusive taxable turnover does not exceed £1,350,000. Leave on anniversary of scheme where annual VAT exclusive taxable turnover exceeds £1,600,000.

 

Main Social Security Benefits

Weekly Benefit
Basic retirement pension - single person
£95.25
- married couple
£152.30
Statutory pay rates - average weekly earnings £90 or over
Statutory Sick Pay
£79.15
Statutory Maternity Pay
- first six weeks
90% of weekly earnings
- next 33 weeks**
£123.06*
Statutory Paternity Pay - two weeks £123.06*
Statutory Adoption Pay - 39 weeks** £123.06*
* Or 90% of weekly earnings if lower
** For children due/placed from 1 April 2009.

Stamp Duty & Stamp Duty Land Tax

Land and buildings (on full consideration paid)
Rate
Residential property
Non-residential
Disadvantaged areas
Other
£
£
£
Nil
1%
3%
4%
0 - 150,000*
150,001* - 250,000
250,001 - 500,000
Over 500,000
0 - 125,000*
125,001* - 250,000
250,001 - 500,000
Over 500,000
0 - 150,000
150,001 - 250,000
250,001 - 500,000
Over 500,000

* £175,000 for transactions with an effective date on or after 3 September 2008 and before 1 January 2010.
Shares and securities - rate 0.5%.

Individual Savings Accounts (ISAs)
£
Overall investment limit
7,200 (10,200*)
Comprising
- stocks and shares
7,200 (10,200*)
- cash
3,600 (5,100*)
* From 6 October 2009 for those aged 50 and over.