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9/13 Thorne Road Doncaster Tel:01302 738382 Fax:01302 761745 info@crozierjones.co.uk |
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Taxable income |
Rate |
|
£ |
% |
|
1 - 2,020 |
10 |
|
2,021 - 31,400 |
22 |
|
31,401 upwards |
40 |
|
£ |
|
| Personal allowance |
4,745 |
| -(Age 65 -74) |
6,830 |
| -(Age 75 or over) |
6,950 |
| Married couple's allowance |
|
| -(Age 65 before 6 April 2000) |
5,725 |
| -(Age 75 or over) |
5,795 |
If income exceeds £18,900 age-related allowances are reduced by 50% of the excess subject to an abatement ceiling.
The married couple's allowance, additional personal allowance and relief for maintenance payments are withdrawn from 2000-2001 and widow's bereavement allowance is withdrawn for new claimants. From 2000-2001 the age-related married couple's allowances and maintenance payments relief are restricted to those couples where one partner was born before 6 April 1935.RETIREMENT ANNUITIES/PERSONAL PENSIONS
Retirement annuity premiums (RAPs) and personal pension contributions (PPCs) are tax deductible up to a maximum percentage of 'net relevant earnings'. Where an individual pays both PPCs and RAPs, maximum allowable PPCs are reduced by qualifying RAPs and given relief in the tax year.|
Age at beginning of tax year 2004-2005 |
RAP |
*PPC |
|
% |
% |
|
|
35 or less |
17.5 |
17.5 |
|
36 - 45 |
17.5 |
20.0 |
|
46 - 50 |
17.5 |
25.0 |
|
51 - 55 |
20.0 |
30.0 |
|
56 - 60 |
22.5 |
35.0 |
|
61 - 75 |
27.5 |
40.0 |
CAR AND FUEL BENEFITS
| Company
cars 2004/05 |
||
| CO2 emissions (g/km) (round down to nearest 5g/km) | % of car’s list price taxed | Fuel benefit (£14,400 x %) |
| up
to 145 |
15 | 2,160 |
| 150 | 16 | 2,304 |
| 155 | 17 | 2,448 |
| 160 | 18 | 2,592 |
| 165 | 19 | 2,736 |
| 170 | 20 | 2,880 |
| 175 | 21 | 3,024 |
| 180 | 22 | 3,168 |
| 185 | 23 | 3,312 |
| 190 | 24 | 3,456 |
| 195 | 25 | 3,600 |
| 200 | 26 | 3,744 |
| 205 | 27 | 3,888 |
| 210 | 28 | 4,032 |
| 215 | 29 | 4,176 |
| 220 | 30 | 4,320 |
| 225 | 31 | 4,464 |
| 230 | 32 | 4,608 |
| 235 | 33 | 4,752 |
| 240 | 34 | 4,896 |
| 245 and above |
35 | 5,040 |
Company cars
- For diesel cars add a 3% supplement, but maximum still 35%.
- Discounts apply to certain environmentally friendly cars.
- For cars registered before 1.1.98 charge is based on engine size.
- The list price includes accessories and is subject to an upper limit of £80,000.
- List price is reduced for capital contributions made by the employee up to £5,000.
- Payments made by employees may reduce the benefits.
Fuel benefits
- 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 - 2004/05 and 2003/04 | |
| Vehicles
under 4 years old £500 |
Vehicles
at least 4 years old £350 |
| Notes 1. The age is determined at the end of the tax year. 2. Van benefits include fuel for private use. |
|
INLAND REVENUE APPROVED MILEAGE RATE
|
Miles
|
Pence
per Mile
|
|
Cars
and vans
|
|
|
up
to 10,000
|
40p
|
|
over
10,000
|
25p |
|
Additional
passenger 5p
per mile.
|
|
|
Bicyles
|
20p
|
|
Motorcycles
|
24p
|
CORPORATION TAX
| Band |
Rate |
|
| Starting rate | 0 - 10,000 |
0%* |
| Marginal starting rate | 10,001 - 50,000 |
23.75% |
| Small companies rate | 50,001 - 300,000 |
19% |
| Marginal small companies rate | 300,001 - 1,500,000 |
32.75% |
| Full rate | over 1,500,001 |
30% |
| Starting rate fraction |
19/400 |
|
| Small companies rate fraction |
11/400 |
The small companies' and starting rates are 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.
*With effect from 1 April 2004, minimum rate of 19% will apply when profits are distributed to non-company shareholders.
CAPITAL ALLOWANCES
| Writing Down Allowance | |
| Plant and Machinery* | 25%#(reducing balance) |
| Motor Cars** | 25% (reducing balance) - £3,000 max |
| Industrial and Agricultural Buildings and Hotels | 4% (straight line) |
*For small businesses: first year allowances (FYAs) of 40% on expenditure until 5.4.04 (31.3.04 for companies). FYAs of 50% for 12 months from 6.4.04 (1.4.04 for companies). 100% FYAs between 1.4.00 and 31.3.04 on computers, software and internet-enabled mobile phones. For medium-sized businesses: FYAs of 40%. For all businesses: 100% FYAs on expenditure on energy saving plant and machinery from 1.4.01. **100% FYAs on new cars with CO2 emissions not exceeding 120 gm/km from 17.4.02. #6% on certain long life assets. |
|
|
£ |
|
| Annual exempt amount |
8,200 |
Percentage
relief depends on number of complete years asset owned after 5.4.98.Add
one extra year if asset owned before 17.3.98.
|
Number of whole years in qualifying holding period |
Percentage of gain chargeable % |
|
0 - 1 |
50 |
|
over 2 |
25 |
Percentage
relief depends on number of complete years asset owned after 5.4.98.Add
one extra year if asset owned before 17.3.98.
|
Number of whole years in qualifying holding period |
Percentage of gain chargeable % |
|
1 |
0 |
|
2 |
95 |
|
3
|
95
|
|
4
|
90
|
|
5
|
85
|
|
6
|
80
|
|
7
|
75
|
|
8
|
70
|
|
9
|
65
|
|
10
|
60
|
INHERITANCE TAX
|
Transfers on death |
Lifetime transfers |
|
| Gross cumulative transfer |
Gross rate of tax |
|
|
% |
% |
|
| Transfers on or after 6 April 2001 | ||
| £1 - £263,000 |
Nil |
Nil |
| £263,001 upwards |
40 |
20 |
| EXEMPTIONS |
£ |
| Annual |
3,000 |
| Small gift |
250 |
| Marriage : | |
| - Parent |
5,000
|
| - Grandparent |
2,500
|
| - Bride/groom |
2,500
|
| - Other |
1,000
|
|
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 primary:
Up to £91
per week
£91.01 to £610 per week over £610 per week |
NIL* Employee 11%** Employer 12.8%** Employer £57.09 + 1%***. Employer 12.8%*** |
| *
Entitlement to contribution-based benefits retained for earnings between
£79.01 and £91 per week. ** On earnings above £91. *** On earnings above £610. |
|
| Class 1A: rate |
12.8% |
| Rate on other taxed benefits in kind |
12.8% |
| Class 1B: rate |
12.8% |
| Class 2: Main rate |
£2.05 per week |
| SEE limit |
£4,125 per annum |
| Class 3: |
£7.15 per week |
| Class 4: Annual lower profits limit |
£4,745 |
| Annual upper profits limit |
£31,720 |
| Rate |
8% |
|
1%
on profits over £31,720.
|
|
| Standard rate |
17.5% |
| Reduced rate |
5%
|
| Annual registration limit |
£58,000 |
| Deregistration limit |
£56,000
|
| VAT fraction |
7/47 |
VAT on private fuel - scale charge due per quarter per car for accounting periods beginning on or after 1 May 2004.
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£ |
£ |
£ |
£ |
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| Up to 1400cc |
|
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| 1401 - 2000cc |
|
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Over 2000cc
|
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| <<2005/06 |
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