|
|
|
 |
Resources |
 Tax
Tables
Income Tax Rates
|
| |
2007/08 (£) |
2006/07 (£) |
| Starting rate 10% on first* |
2,230 |
2,150 |
| Basic rate (20% for savings income) 22% on next* |
32,370 |
31,150 |
| Higher rate 40% on income over |
34,600 |
33,300 |
| |
|
|
| *From 2008/09 the 10% starting band will
be removed and the basic rate of tax will be reduced to 20% for all sources
of income (other than dividends). |
| |
|
|
| Dividends |
|
|
| Basic rate taxpayers |
10% |
10% |
| Higher rate taxpayers |
32.5% |
32.5% |
| |
| Pre-owned assets tax (£5,000 taxable threshold) |
As income |
As income |
| |
|
|
| Discretionary and Accumulation & Maintenance Trusts |
|
|
| Basic rate band |
1,000 |
1,000 |
| Dividends (rate applicable to trusts - RAT) |
32.5% |
32.5% |
| Other income (rate applicable to trusts - RAT) |
40% |
40% |
| |
|
|
| Interest In Possession Trusts |
|
|
| Dividends |
10% |
10% |
| Savings |
20% |
20% |
| Other income |
22% |
22% |
| |
|
| |
Top
Income Tax Allowances,
Reliefs and Credits
|
|
|
|
2007/08
£ |
2006/07
£ |
| Given at marginal rate of income tax |
|
|
| Personal allowance (minimum) |
5,225 |
5,035 |
| Personal allowance (age 65-74) |
7,550 |
7,280 |
| Personal allowance (age 75+) |
7,690 |
7,420 |
| |
|
|
| Blind Person's Allowance |
1,730 |
1,660 |
| |
|
|
| Rent-a-room tax free home income |
4,250 |
4,250 |
| |
| Relief restricted to 10% |
|
|
| Married couples/Civil partnerships allowance (age under 75 and born before
6th April 1935) |
6,285 |
6,065 |
| Married couples/Civil partnerships allowance (age 75+) |
6,365 |
6,135 |
| Married couples/Civil partnerships allowance (minimum) |
2,440 |
2,440 |
| |
|
|
| Age related reliefs abated by £1 for every £2 of income
over |
20,900 |
20,100 |
| |
|
|
| Child Tax Credit (CTC) |
|
|
| Family element |
545 |
545 |
| Family element baby addition |
545 |
545 |
| Child element |
1,845 |
1,745 |
| Disabled child element |
2,440 |
2,350 |
| |
|
|
| Working Tax Credit (WTC) |
|
|
| Basic element |
1,730 |
1,665 |
| Couples & lone parent element |
1,700 |
1,640 |
| 30 hour element |
705 |
680 |
| Disabled worker element |
2,310 |
2,225 |
| |
|
|
| Withdrawal Rates for CTC & WTC |
|
|
| First income threshold |
5,220 |
5,220 |
| First income threshold for CTC only |
14,495 |
14,155 |
| First withdrawal rate |
37% |
37% |
| Second income threshold |
50,000 |
50,000 |
| Second withdrawal rate |
6.67% |
6.67% |
| Income increase disregarded |
25,000 |
25,000 |
| |
|
|
| Limits for other reliefs |
|
|
| Enterprise Investment Scheme (EIS) |
|
|
| Income Tax relief @ 20% |
400,000 |
400,000 |
| Capital Gains Tax deferral |
Unlimited |
Unlimited |
| |
|
|
| Venture Capital Trusts (VCT) |
|
|
| Income Tax relief @ 30% |
400,000 |
400,000 |
| Capital Gains Tax |
N/A |
N/A |
| Minimum period held |
5 years |
5 years |
| |
|
|
|
Top
Charitable Giving
|
| |
2007/08 |
2006/07 |
| Give as you earn - gross maximum |
No maximum |
No maximum |
| Gift Aid - net minimum (no maximum) |
No minimum |
No minimum |
| Convenanted donations (minimum 3 year convenant) |
No limit |
No limit |
| |
|
|
| Note that if you have not paid sufficient tax to cover
the credit claimed by the charitable body, you will be liable to make
good the shortfall of that claim by paying additional tax. |
|
National Insurance
|
| (bracketed figures represent 2006/07 data) |
| |
|
| Class 1 |
Employees |
Employers |
| Weekly earnings |
|
|
| On first £100.00 (£97.00) |
NIL |
NIL |
| £100.01 to £670.00 (£97.01 to £645.00) |
11% |
12.80% |
| £670.00+ (£645.00+) |
1% |
12.80% |
|
| Class 1A |
12.8% NIC on benefits in kind payable on 19th July
after the end of the tax year. |
| Class 1B |
12.8% payable on PAYE Settlement Agreement benefits,
tax due 19th October after the end of the tax year. |
| Class 2 |
Self employed flat rate of £2.20 (£2.10)
per week. |
| Class 3 |
Voluntary contributions at a rate of £7.80 (£7.55)
per week. |
| Class 4 |
Self-employed earning rate |
| |
|
| |
2007/08 |
2006/07 |
| Profits between £5,225 (£5,035) and £34,840
(£33,540) per annum |
8% |
8% |
| Profits in excess of £34,840 (£33,540)
per annum |
1%
|
1% |
|
|
Top
Car and Fuel Benefits
|
Car benefit is now taxed in connection with the vehicle's
Co2 emissions, based on the vehicle's purchase price when new
(up to a maximum purchase price of £80,000).
|
| Co2 emissions in grams per kilometre |
% of car's price to be taxed |
| |
Petrol |
Diesel |
| Under 145 |
15 |
18 |
| 145-149 |
16 |
19 |
| 150-154 |
17 |
20 |
| 155-159 |
18 |
21 |
| 160-164 |
19 |
22 |
| 165-169 |
20 |
23 |
| 170-174 |
21 |
24 |
| 175-179 |
22 |
25 |
| 180-184 |
23 |
26 |
| 185-189 |
24 |
27 |
| 190-194 |
25 |
28 |
| 195-199 |
26 |
29 |
| 200-204 |
27 |
30 |
| 205-209 |
28 |
31 |
| 210-214 |
29 |
32 |
| 215-219 |
30 |
33 |
| 220-224 |
31 |
34 |
| 225-229 |
32 |
35 |
| 230-234 |
33 |
35 |
| 235-240 |
34 |
35 |
240-244
|
35 |
35 |
| 245+ |
35 |
35 |
|
| For cars registered from 1st January 1998 with no Co2 emissions
figures, the tax charge is 15% of the list price for engines up to 1,400cc,
25% for engines between 1,401 and 2,000cc, and 35% for those exceeding
2,000cc. |
|
Vans
|
| |
|
|
| All vans regardless of age |
£3,000 |
£500 |
| 4 years and older at the end of 2006/07 |
N/A |
£350 |
| Fuel scale charge |
£500 |
£0 |
| |
| From 2007/08 all vans regardless of age will be taxed
through your tax code at a value of £3,000. |
|
| Car Fuel |
| Charged on a flat figure of |
£14,400 |
|
| % charge as per the Co2 emissions above |
| Minimum charge |
£2,160 |
|
| Maximum charge |
£5,040 |
|
| |
|
|
| Revenue approved mileage rates |
First 10,000 miles |
Excess over 10,000 miles |
| Cars and vans |
40p
|
25p |
| Motor cycles |
24p |
24p |
|
20p |
20p |
| |
|
|
| There is also an optional 5p allowance for each
passenger carried who is an employee travelling on business. |
|
Top
Pensions
|
| |
2007/08 (£) |
2006/07 (£) |
| Lifetime allowance |
1,600,000 |
1,500,000 |
| Lifetime allowance charge |
55% if cash |
55% if cash |
| |
25% if income |
25% if income |
| Annual allowance |
225,000 |
215,000 |
| Annual allowance charge |
40% |
40% |
| Maximum relievable personal contribution |
100% of UK earnings |
100% of UK earnings |
| |
£3,600 if greater |
£3,600 if greater |
| Maximum tax free cash |
25% of pension benefit value |
25% of pension benefit value |
|
Top
Capital Gains Tax
|
| |
2007/08 (£) |
2006/07 (£) |
| Rates of tax |
|
|
| Individuals - added to income |
10%/20%/40% |
|
| Companies - added to income |
20%/30% |
19%/30% |
| Discretionary and Accumulation & Maintenance Trusts |
40% |
40% |
| Interest In Possession Trusts |
40% |
40% |
| |
|
|
| Exemptions |
|
|
| Individuals and most estates |
9,200 |
8,800 |
|
4,600 |
4,400 |
| Chattels (5/3 taxable on excess above) |
6,000 |
6,000 |
| |
|
|
Individual's indexation allowance for assets owned
on 31st March 1982 is 104.7% (to April 1998).
Companies' indexation allowance continues to be calculated to the
month of disposal. |
|
Taper relief
Percentage of gain that is chargeable based on number of years and
asset is owned after 5th April 1998. |
| |
Business Assets |
Non-Business Assets |
| 6th April 1998 to 5th April
2000 |
|
|
|
| Complete years held/owned: |
|
|
| 0 |
100.0% |
100.0% |
| 1 |
92.5% |
100.0% |
| 2 |
85.0% |
100.0% |
| 3 |
77.5% |
95.0% |
| 4 |
70.0% |
90.0% |
| 5 |
|
85.0% |
| 6 |
55.0% |
80.0% |
| 7 |
|
75.0% |
| 8 |
40.0% |
70.0% |
| 9 |
32.5% |
65.0% |
| 10+ |
|
60.0% |
| |
|
|
| 6th April 2000 to 5th April 2002 (Business Assets Only) |
|
|
| Complete years held/owned: |
|
|
| 0 |
100.0% |
|
| 1 |
87.5% |
|
| 2 |
75.0% |
|
| 3 |
50.0% |
|
| 4+ |
25.0% |
|
| |
|
|
| Disposals after 6th April 2002 (Business Assets Only) |
|
|
| Complete years held/owned: |
|
|
| 0 |
100.0% |
|
| 1 |
50.0% |
|
| 2+ |
25.0% |
|
| |
|
|
| Pre 17th March 1998 assets sold in 2006/07 |
|
65.0% |
| Pre 17th March 1998 assets sold in 2007/08 |
|
60.0% |
|
| |
Top
Inheritance Tax
|
|
| |
|
2007/08 (£)
|
2006/07 (£) |
| Nil Rate Band (NRB) or Taxable Threshold |
300,000 |
285,000 |
| |
|
|
| Rates of Inheritance Tax |
|
|
| NRB |
0% |
0% |
| Chargeable lifetime gifts where in excess of the NRB |
20% |
20% |
| On death where in excess of the NRB |
40% |
40% |
| |
|
|
| Exemptions |
|
|
| Total annual gifts (for each donor)* |
3,000 |
3,000 |
| Small gifts (for each donee) |
|
250 |
250 |
| Gifts made from surplus income |
Unlimited |
Unlimited |
| |
|
|
| In consideration of marriage |
|
|
| Gift by a parent |
5,000 |
5,000 |
| Gift by a grandparent |
2,500 |
2,500 |
| Gift by any other person |
1,000 |
1,000 |
| |
|
|
| Gifts made to individuals and certain types of trust are
potentially exempt, provided the donor survives for seven years. If they
die within that period taper relief (below) is available if the gift is
taxable. |
| |
|
|
| Complete years |
% charged to IHT |
|
| 0 |
100% |
|
| 1 |
100% |
|
| 2 |
100% |
|
| 3 |
80% |
|
| 4 |
60% |
|
| 5 |
40% |
|
| 6 |
20% |
|
| 7 |
0% |
|
| |
|
|
|
Top
Corporation Tax
|
| |
Financial Year |
| |
2008/09 |
2007/08 |
| Profits exceeding £1,500,000 (standard rate) |
28% |
30% |
| Profits under £300,000 (small companies rate) |
21% |
20% |
| |
|
|
| From 2008/09 the standard rate of Corporation Tax will
be reduced to 28% and the small companies rate will be increased to 21%. |
| |
|
|
| Marginal relief fraction |
7/400 |
1/40 |
| Effective marginal rate on profits between £300,000 and £1,500,000 |
29.75% |
32.50% |
| |
|
|
| Note that for close investment holding companies the
30% rate will apply regardless of profit levels. |
|
Top
Capital Allowances
|
| |
First Year/Initial Allowances |
Writing-down allowance |
| Plant and Machinery* |
50% |
25% reducing balance |
| Plant and Machinery** |
40% |
25% reducing balance |
| Industrial Buildings |
N/A |
4% straight line |
| Agricultural Buildings |
N/A |
4% straight line |
| Enterprise Zone |
100% |
25% reducing balance |
| Scientific Research |
100% |
N/A |
| Energy Saving Equipment*** |
100% |
N/A |
| Low Emission Cars**** |
100% |
N/A |
| |
|
|
| * Only available to small businesses |
| **Only available to medium sized businesses |
| ***Equipment must be included in Energy Technology List |
| ****Cars registered on/after 17th April 2002 emitting
120gm/km or less or is electrically propelled. |
|
Top
Value Added Tax
|
| |
From 1st April 2007 |
From 1st April 2006 |
| |
|
|
| Rates of Tax |
|
|
|
17.50% |
17.50% |
| Fuel and power rate |
5.00% |
5.00% |
| VAT as a fraction of gross price |
7/47 |
7/47 |
| |
|
|
| Annual Turnover Limits |
|
|
| Registration |
£64,000 |
£61,000 |
| Deregistration |
£62,000 |
£59,000 |
| |
|
|
| Private Fuel from 6 April 2007 |
|
|
| |
|
|
| The calculation of fuel scale charges for private use of
road fuel has been altered from engine size to carbon dioxide (Co2)
emissions in order to bring it into line with the current personal tax
regime. |
| |
|
|
| This new method must be used from the beginning of the next
VAT accounting period on or after 1st May following the budget. |
|
| Private Fuel from 6 April 2006 |
VAT inc. scale charge |
Liability @ 17.5% |
| |
|
|
| Petrol |
|
|
| Up to 1400cc |
£273.00 |
£40.66 |
| 1401 - 2000cc |
£346.00 |
£51.53 |
| Over 2000cc |
£508.00 |
£75.66 |
| |
|
|
| Diesel |
|
|
| Up to 1400cc |
£260.00 |
£38.72 |
| 1401 - 2000cc |
£260.00 |
£38.72 |
| Over 2000cc |
£331.00 |
£49.30 |
|
|
Top
Stamp Duty & Stamp Duty Land
Tax
|
| |
2007/08 |
2006/07 |
| Stocks and marketable securities |
0.50% |
0.50% |
| Rounded to the nearest multiple of £5.00 |
| |
| On land transactions |
| |
| Residential: |
|
|
| £125,000* or less |
NIL |
NIL |
| £125,001* to £250,000 |
1% |
1% |
| £250,001 to £500,000 |
3% |
3% |
| £500,000+ |
4% |
4% |
| |
| Non-residential: |
| £150,000 or less |
NIL |
NIL |
| £150,001 to £250,000 |
1% |
1% |
| £250,001 to £500,000 |
3% |
3% |
| £500,000+ |
4% |
4% |
| |
|
|
| *£150,000 in designated disadvantaged areas. |
| |
|
|
| On lease rentals |
|
|
| |
|
|
| Residential: |
|
|
| £125,000 or less |
NIL |
NIL |
| £125,000+ |
1% |
1% |
| |
|
|
| Non-residential: |
|
|
| £150,000 or less |
NIL |
NIL |
| £150,000+ |
1% |
1% |
| |
|
|
| Lease premium rates are as for land transactions
except the nil band only applies if rent is less than £600 per
annum. |
| |
|
Top
Self Assessment: Key Dates 2007/08
|
31 January 2007 Deadline for filing tax returns for
2005/06. Balancing payment due for 2005/06. First payment due for 2006/07.
31 January 2007 Interest charged on any tax owed but
not received by this date for a tax return issued up to the previous
31 October following the tax year-end.
01 February 2007 First penalty of £100 charged
if the self-assessment tax return is outstanding.
28 February 2007 Surcharge of 5% applied if the balancing
payment due for 2005/06 is still outstanding by this date. The 5% surcharge
does not apply to late payment of the first payment on account for 2006/07.
05 April 2007 The last day of the 2006/07 tax year.
05 April 2007 Final opportunity to pay personal pension
contributions in respect of 2006/07.
05 April 2007 Final opportunity to utilise capital
gains tax exemption of £8800 for 2006/07.
05 April 2007 Final opportunity to utilise inheritance
tax exemption of £3000 for 2006/07, and £3000 for 2005/06,
if not already used.
05 April 2007 Final opportunity for IR35 companies to
pay salaries so that they contribute to PAYE / NIC due for 2005/06.
06 April 2007 The first day of 2007/08 tax year.
06 April 2007 A 2006/07 tax return or a notice to complete
a tax return will be sent out to all people who receive tax returns.
19 April 2007 Deadline for payment of 2006/07 PAYE
/ NIC on deemed salaries for IR35 companies. Interest automatically applies
thereafter.
19 May 2007 Deadline for filing PAYE return forms,
or substitutes and P35.
31 May 2007 Deadline for employers to issue and assist
employees with a Form P60 (pay and tax details from employment) for the
year ended 5 April 2007.
01 July 2007 Corporation tax liability due to be paid
in relation to 30 September 2006 accounting period end.
05 July 2007 Final opportunity to make a claim to the
Inland Revenue for any new tax credits to which you are entitled (in
order to receive full entitlement).
06 July 2007 Deadline for submission of forms P11d,
P11d (b) and P9D for the year to 5 April 2007.
19 July 2007 Payment due for Class 1A National Insurance
for 2007 (22 July for larger employers who pay electronically).
31 July 2007 Limited company accounts filing deadline
for accounting period ended 30 September 2006.
31 July 2007 Second payment on account for 2006/07.
31 July 2007 Second penalty of up to £100 due
if the self-assessment tax return is still outstanding six months after
the usual filing date (31 January).
31 July 2007 Second automatic surcharge of 5% due if
the balancing payment of tax for 2005/06 is not paid by this date. The
second 5% surcharge does not apply to late payment of the first payment
on account for 2006/07.
31 July 2007 Filing deadline for corporation tax return
for accounting period ended 31 July 2007.
01 August 2007 Corporation tax liability due to be
paid in relation to 31 October 2006 accounting period end.
31 August 2007 Limited company accounts filing deadline
for accounting period ended 31 October 2006.
31 August 2007 Filing deadline for corporation tax
return for accounting period ended 31 August 2006.
01 September 2007 Corporation tax liability due to
be paid in relation to 30 November 2006 accounting period end.
29 September 2007 Deadline for submission of paper
tax returns for HM Revenue & Custom’s calculation and where
the taxpayer wants a balancing payment (below £2,000) collected
through their 2008/09 PAYE code.
30 September 2007 Limited company accounts filing
deadline for accounting period ended 30 November 2006.
30 September 2007 Filing deadline for corporation tax
return for accounting period ended 30 September 2006.
30 September 2007 Deadline for submission of paper
tax returns for HM Revenue & Custom’s calculation
and where the taxpayer wants a balancing payment (below £2,000)
collected through their 2008/09 PAYE code.
01 October 2007 Corporation tax liability due
to be paid in relation to 31 December 2006 accounting period end.
05 October 2007 Deadline for notifying H M Revenue & Customs of
new sources of income if no tax return has been issued for 2005/06.
06 October 2007 Last date to notify IR of a tax liability
where no tax return is issued.
19 October 2007 Payments of income tax and NICs for
the previous tax year under any voluntary PAYE settlement agreement should
reach HMRC.
31 October 2007 Limited company accounts filing
deadline for accounting period ended 31 December 2006.
31 October 2007 Filing deadline for corporation
tax return for accounting period ended 31 October 2006.
30 December 2007 Deadline for submission of tax returns
over the internet; and where the taxpayer wants a balancing payment (below £2,000)
collected through their 2007/08 PAYE code.
31 January 2008 Deadline to file Tax Returns for the
year ending 5 April 2007. Balancing payment of 2006/07 due. Payment of
2006/07 capital gains tax due. First payment on account for 2007/08 due.
02 February 2008 Automatic £100 penalty applied
in respect of undelivered 2007 tax returns. |
|
Disclaimer
|
| The information in this tax card is based upon the 2007 Budget
and other earlier announcements and may be subject to amendment by the
Finance Act. |
|
|
|
|
