Tax tables 

 

Income Tax Rates 2011-2012

Taxable income

Rate

£

%

0 - 2,560

10*

0 - 35,000

20**

35,001 - 150,000

40***

0ver 150,000

50****

* Only applicable to dividends and savings income.
** Except dividends (10%)
*** Except dividends (32.5%).
**** Except dividends (2.5%).
Other income taxed first, then savings income and finally dividends.

Personal Allowances

 

£

Personal allowance

7,475

-(Age 65 -74)

9,990

-(Age 75 or over)

10,090

For 2011/12 personal allowances are reduced by £1 for every £2 of adjusted net income over £100,000

Married couple's allowance

 

-(Age 75 or over)

7,295

Blind person's allowance

1,980

If income exceeds £24,000 age-related allowances are reduced by 50% of the excess subject to an abatement ceiling.

 

Pensions Simplification

 

 

Annual Allowance

2011/12

 

£50,000

 

Tax Credits

 

£

Working Tax Credit (WTC)

 

Basic element - max.

1,920

Childcare element
70% 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.

2,555

Family element

545

Baby addition

-


Reductions in maximum rates 41% of income above £6,420*p.a.

*If only CTC is claimed, the threshold is £15,860 p.a.. The family element of CTC is not reduced unless income is more than £40,000 p.a. where the withdrawal rate is 41%.



Car And Fuel Benefits

Company cars

CO2 emissions (gm/km) (round down to nearest 5gm/km)

% of car’s list price taxed

Fuel benefit (£18,800 x %)
£

up to 125

15

2,820

130

16

3,008

135

17

3,196

140

18

3,384

145

19

3,572

150

20

3,760

155

21

3,948

160

22

4,136

165

23

4,324

170

24

4,512

175

25

4,700

180

26

4,888

185

27

5,076

190

28

5,264

195

29

5,452

200

30

5,640

205

31

5,828

210

32

6,016

215

33

6,204

220

34

6,392

225 and above

35

6,580


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.

- A 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

 

Van benefit £3,000
Fuel benefit £550

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

45p

over 10,000

25p

Bicyles

20p

Motorcycles

24p

Corporation Tax

 

Band

Rate

Small companies rate

0 - 300,000

20%

Marginal small companies rate

300,001 - 1,500,000

27.5%

Full rate

over 1,500,001

26%

Small companies rate fraction

 

3/200

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 £100,000 p.a. Any costs over the AIA fall into the normal capital allowance pools at either 10% or 20%.

The AIA may need to be shared between certain businesses under common ownership.

Other plant and machinery allowances
The annual rate of allowance is 20%. A 10% rate applies to expenditure incurred on integral features and on long life assets.

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 nil% from 6 April 2011 (1 April 2011 for companies).

Capital Gains Tax Exemptions And Reliefs

 

£

Annual exempt amount

10,600

Standard Rate

18%

Higher Rate

28%*


*For higher and additional rate taxpayers.

Entrepreneurs Relief The first £10M (for gains arising on or after 23 June 2010 but before 5 April 2011, the first £5M) of qualifying gains are charged at an effective rate of 10%. Gains in excess of the limit are charged at 18%.

Inheritance Tax

 

Transfers on death

Lifetime transfers

Gross cumulative transfer

Gross rate of tax

 

%

%

Transfers on or after 6 April 2010

 

 

£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

Employee

 

Up to £139

Nil*

 

£139.01 - £817

12%**

 

Over £817

2%**

 

* Entitlement to contribution-based benefits retained for earnings between £102 and £139 per week.
** On earnings above £139.
*** On earnings above £817.

 

 

 

 

Weekly earnings

Employer

Up to £136

Nil

Over £136

13.8%

 

Class 1A (employers)

13.8% on employee taxable benefits

Class 1B (employers)

13.8% on PAYE Settlement Agreements

Class 2 (self-employed)

flat rate per week £2.50
small earnings exception p.a. £5,315 p.a.

Class 3 (voluntary)

flat rate per week £12.60

Class 4 (self-employed)

9% on profits between £7,225 and £42,475 plus 2% on profits over £42,475

 

Value Added Tax

Standard rate

20%

Reduced rate

5%

Annual registration limit

£73,000

Deregistration limit

£71,000

VAT fraction

1/6

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. 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 - 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

£102.15

 

- married couple

£163.35

 

 

 

Statutory pay rates - average weekly earnings £90 or over

Statutory Sick Pay

 

£81.60

Statutory Maternity Pay

 

 

- first six weeks

90% of weekly earnings

- next 33 weeks

 

£128.73*

Statutory Paternity Pay - two weeks

 

£128.73*

Statutory Adoption Pay - 39 weeks

 

£128.73*

* Or 90% of weekly earnings if lower

 

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

* Relief available for first time buyers for transactions with an effective date on or after 25 March 2010 and before 25 March 2012.
Shares and securities - rate 0.5%.

 

Individual Savings Accounts (ISAs)

 

£

Overall investment limit

 

10,680

Comprising

- stocks and shares

10,680 max

 

- cash

5,340 max

 

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