Income
Tax Rates
|
| |
2008/09 (£) |
2007/08 (£) |
| Starting rate 10% on first* |
2,320 |
2,230 |
| Basic rate 20% on the next |
36,000 |
32,370 |
| Higher rate 40% on income over |
36,000 |
34,600 |
| |
|
|
| *from 2008/09 only applicable
on savings income where it is below £2,320. |
| |
|
|
| 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% |
| |
|
|
| *from 6/4/2008 A&M
trusts can only be created by a parent's will, all
other trusts will fall under the RPT regime. |
| |
|
|
| Interest In Possession Trusts |
|
|
| Dividends |
10% |
10% |
| Savings |
20% |
20% |
| Other income |
20% |
22% |
| |
|
| |
Top
Income
Tax Allowances, Reliefs and Credits
|
|
2008/09
(£) |
2007/08
(£) |
|
|
|
| Given at marginal rate of income
tax |
|
|
| Personal allowance (minimum) |
5,435 |
5,225 |
| Personal allowance (age 65-74) |
9,030 |
7,550 |
| Personal allowance (age 75+) |
9,180 |
7,690 |
|
|
|
| Blind Person's Allowance |
1,800 |
1,730 |
|
|
|
| Rent-a-room tax free home income* |
4,250 |
4,250 |
|
|
|
| *restricted to £2,150
if letting jointly. |
|
|
|
|
|
| Relief restricted to 10% |
|
|
| Married couples/Civil partnerships
allowance (age under 75 and born before 6th April 1935) |
6,535 |
6,285 |
| Married couples/Civil partnerships
allowance (age 75+) |
6,625 |
6,365 |
| Married couples/Civil partnerships
allowance (minimum) |
2,540 |
2,440 |
|
|
|
| Age related relief's abated
by £1 for every £2 of income over |
21,800 |
20,900 |
|
|
|
| Child Tax Credit (CTC) |
|
|
| Family element |
545 |
545 |
| Family element baby addition |
545 |
545 |
| Child element |
2,085 |
1,845 |
| Disabled child element |
2,540 |
2,440 |
| Severely disabled child element |
1,020 |
980 |
|
|
|
| Working Tax Credit (WTC) |
|
|
| Basic element |
1,800 |
1,730 |
| Couples & lone parent
element |
1,770 |
1,700 |
| 30 hour element |
735 |
705 |
| Disabled worker element |
2,405 |
2,310 |
| Severe disability element |
1,020 |
980 |
| 50+ return to work payment
(16-29 hours) |
1,235 |
1,185 |
| 50+ return to work payment
(30+ hours) |
1,840 |
1,770 |
|
|
|
| Childcare Element of WTC |
|
|
| Maximum eligible cost for one
child |
£175
per week |
£175
per week |
| Maximum eligible cost for two
or more children |
£300
per week |
£300
per week |
| Percentage of eligible costs
covered |
80% |
80% |
|
|
|
| Withdrawal
Rates for CTC & WTC |
|
|
| First income threshold |
6,420 |
5,220 |
| First income threshold for
CTC only |
15,575 |
14,495 |
| First withdrawal rate |
39% |
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 relief's |
|
|
| Enterprise Investment Scheme
(EIS) at 20% |
|
|
| Maximum Investment |
500,000 |
400,000 |
| EIS capital gains re-investment |
Unlimited |
Unlimited |
|
|
|
| Venture Capital Trusts (VCT)
@ 30% |
|
|
| Maximum Investment |
200,000 |
200,000 |
| |
|
| |
Top
Charitable
Giving
|
| |
2008/09 |
2007/08 |
| 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
|
| Class 1 |
Employees |
Employers |
| Weekly earnings |
|
|
| On first £105.00 (£100.00) |
NIL |
NIL |
| £105.01 to £770.00 (£100.01 to £670.00) |
11% |
12.80% |
| £770.00+ (£670.00+) |
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 £2.30
(£2.20) per week. |
| Class 3 |
Voluntary contributions at a rate
of £8.10 (£7.80) per week. |
| Class 4 |
Self-employed earning rate |
| |
|
| |
2008/09 |
2007/08 |
| Profits between £5,435 (£5,225)
and £40,040 (£34,840) per annum |
8% |
8% |
| Profits in excess of £40,040
(£34,840) 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 |
| 120 or less |
10 |
13 |
| 121-139 |
15 |
18 |
| 140-144 |
16 |
19 |
| 145-149 |
17 |
20 |
| 150-154 |
18 |
21 |
| 155-159 |
19 |
22 |
| 160-164 |
20 |
23 |
| 165-169 |
21 |
24 |
| 170-174 |
22 |
25 |
| 175-179 |
23 |
26 |
| 180-184 |
24 |
27 |
| 185-189 |
25 |
28 |
| 190-194 |
26 |
29 |
| 195-199 |
27 |
30 |
| 200-204 |
28 |
31 |
| 205-209 |
29 |
32 |
| 210-214 |
30 |
33 |
| 215-219 |
31 |
34 |
| 220-224 |
32 |
35 |
| 225-229 |
33 |
35 |
| 230-234 |
34 |
35 |
| 235 and over |
35 |
35 |
|
1. The exact CO2 figure is rounded down
to the lower 5g/km for cars with emission of 125g/km
or more.
2. Euro IV diesel cars registered before 1/1/06 are treated
as petrol cars. Euro IV diesel cars registered from 2006
are treated as other diesels. |
|
Vans
|
| |
2008/09 |
2007/08 |
| All vans regardless of age |
£3,000 |
£3,000 |
| Fuel scale charge |
£500 |
£500 |
| |
| From 2007/08 all vans regardless of
age will be taxed through your tax code at a value
of £3,000. |
|
| Car Fuel |
| |
2008/09 |
2007/08 |
| Charged on a flat figure of |
£16,900 |
£14,400 |
| % charge as per the Co2 emissions
above |
| Minimum charge |
£1,690 |
£2,160 |
| Maximum charge |
£5,915 |
£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
|
| |
2008/09 (£) |
2007/08 (£) |
| Lifetime allowance |
1,650,000 |
1,600,000 |
| Lifetime allowance charge |
55% if cash |
55% if cash |
| |
25% if income |
25% if income |
| Annual allowance |
235,000 |
225,000 |
| 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
|
| |
2008/09 (£) |
2007/08 (£) |
| Rates of tax |
|
|
| Individuals - flat rate from 6/4/2008 |
18% |
10%/20%/40% |
| Companies - added to income |
21%/28% |
20%/30% |
| Discretionary and Accumulation & Maintenance
Trusts |
18% |
40% |
| Interest In Possession Trusts |
18% |
40% |
| |
|
|
| Exemptions |
|
|
| Individuals and most estates |
9,600 |
9,200 |
| Most trusts |
4,800 |
4,600 |
| Chattels (5/3 taxable on excess above) |
6,000 |
6,000 |
| |
|
|
Individual's indexation allowance
(ceases 6th April 2008) - maximum rate 104.7%
Companies' indexation allowance continues to be
calculated to the month of disposal. |
|
Taper Relief
(ceases 6th April
2008) |
|
Non-Business Assets |
| Non-Business Assets |
|
| Complete years held/owned: |
|
| 0 |
100.0% |
| 1 |
100.0% |
| 2 |
100.0% |
| 3 |
95.0% |
| 4 |
90.0% |
| 5 |
85.0% |
| 6 |
80.0% |
| 7 |
75.0% |
| 8 |
70.0% |
| 9 |
65.0% |
| 10+ |
60.0% |
| Business Assets |
|
| Complete years held/owned: |
|
| 0 |
100.0% |
| 1 |
50.0% |
| 2+ |
25.0% |
|
|
| Pre 17th March 1998 assets
sold in 2007/08 |
60.0% |
|
|
Top
Inheritance
Tax
|
|
2008/09 (£) |
2007/08 (£) |
|
|
|
| Nil Rate Band (NRB) or Taxable
Threshold |
312,000 |
300,000 |
|
|
|
| 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% |
| |
|
|
| Marginal relief fraction |
1/40 |
11/400 |
| 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
|
| |
2008/09
% |
2007/08
% |
| Plant and machinery (new or
second hand) |
20 |
25 |
| Motor cars (new or second hand) |
20 |
25 |
| Industrial/agricultural buildings
and works/qualifying hotels |
3 |
4 |
| Long life machinery and plant |
10 |
6 |
| Integral features in buildings |
10 |
0 |
| Patent rights and know how |
25 |
25 |
| Mines, oil wells and other
mineral rights |
25 |
25 |
| Research & development |
100 |
100 |
| Energy saving and water efficient
plant & machinery |
100 |
100 |
| Cars with low CO2 emissions |
100 |
100 |
| Plant/machinery for gas refuelling
station |
100 |
100 |
| Renovation of business premises
(deprived areas only) |
100 |
100 |
|
From 1st April 2008 there is a 100% annual investment
allowance on the first £50,000 capital expenditure on plant & machinery
(per group of companies).
Top
Value Added Tax
|
| |
From 1st April 2008 |
From 1st April 2007 |
| |
|
|
| 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 |
£67,000 |
£64,000 |
| Deregistration |
£65,000 |
£62,000 |
| |
|
|
| Private Fuel |
|
|
| |
|
|
| 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
2007. |
|
Top
Stamp Duty & Stamp
Duty Land Tax
|
| |
2008/09 |
2007/08 |
| 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 2008/09
|
31 January 2008 Deadline for filing
tax returns for 2006/07. Balancing payment due for
2006/07. First payment on account due for 2007/08.
31 January 2008 Interest charged
on any tax owed but remaining unpaid for tax returns
issued up to 31 October 2007.
1 February 2008 First fixed penalty
of £100 charged if the self assessment tax return
was not filed by 31 January 2008. (If return issued
after 31 October 2007 this date is revised to three
months from the date of issue stated on the return).
28 February 2008 First surcharge
applied at a rate of 5% to the outstanding balancing
payment for 2006/07, this does not apply to the first
balancing payment for 2007/08.
12 March 2008 Alistair Darling’s
first budget speech as Chancellor.
5 April 2008 Final day of the 2007/08
tax year, also being the final day on which one can:
- utilise the individual capital gains tax annual
exemption of £9,200 for 2007/08;
- claim indexation allowance and taper relief on
capital disposals before it is abolished;
- utilise inheritance tax annual gift exemption of £3,000
for 2007/08;
- pay personal pension contributions in respect of
2007/08;
- IR35 companies pay salaries to contribute PAYE/NIC
to 2007/08.
6 April 2008 First day of the 2008/09
tax year. 2007/08 tax returns or notices to complete
a tax return will be sent out to all self-assessment
taxpayers.
19 April 2008 Deadline for payment
of 2007/08 PAYE/NIC for IR35 companies.
19 May 2008 Deadline for filing PAYE
return forms, or substitutes and P35.
31 May 2008 Deadline for employers
to issue form P60 for year ended 5 April 2008.
1 July 2008 Corporation tax liability
due to be paid for companies with a 30 September 2007
year end.
5 July 2008 Last chance to claim
for any new entitlements to Tax credits so as to receive
full entitlement.
6 July 2008 Deadline for submission
of forms P11d, P11d(b) and P9D for 5 April 2008.
19 July 2008 Class 1A NIC payment
is due (22 July for larger employers paying electronically).
31 July 2008 The following events
occur for individuals:
- Second payment on account for 2007/08 is due for
self assessment taxpayers;
- Second fixed penalty of £100 is issued if
the self assessment tax return remains outstanding;
- Second 5% surcharge if the 2006/07 balancing payment
has still not been paid. Again this does not apply
to the payments on account.
31 July 2008 The following events
occur for companies:
- Corporation tax returns for the year ended 31 July
2007 must be filed;
- Limited company accounts filing deadline for year
ended 30 September 2007.
1 August 2008 Corporation tax due
to be paid for 31 October 2007 accounting period end.
31 August 2008 Limited company accounts
filing deadline for 31 October 2007 accounting period
end and filing deadline for corporation tax returns
with an accounting period ending 31 August 2007.
1 September 2008 Corporation tax
liability to be paid for accounting periods ending
30 November 2008 accounting period end.
30 September 2008 Deadline for:
- Receipt of self assessment tax returns by HMRC
where you wish for HMRC to calculate your liability;
- Corporation tax returns for accounting periods
ended 30 September 2007;
- Submission of self assessment tax returns where
you wish for your balancing payment (below £2,000)
to be collected through your 2009/10 PAYE code.
1 October 2008 Corporation tax liability
due for payment in relation to 31 December 2007 accounting
periods.
5 October 2008 Deadline for notifying
HMRC of new income sources where a self assessment
tax return has not previously been required.
6 October 2008 Last date to notify
HMRC of a tax liability where no tax return has been
issued.
19 October 2008 Payment of income
tax and NIC for the previous year under any voluntary
PAYE settlement agreement.
31 October 2008 Deadline for:
- Submission of paper self assessment tax returns
for 2007/08;
- Limited company accounts filing deadline for accoutning
periods ended 31 December 2007;
- Filing of corporation tax returns for accounting
periods ended 31 October 2007.
30 December 2008 Deadline for submission
of self assessment tax returns over the internet where
you wish for your balancing payment (below £2,000)
to be collected through your 2009/10 PAYE code.
31 January 2009 Deadline for:
- Submission of 2007/08 self assessment tax returns
over the internet;
- Submission of 2007/08 self assessment paper returns
for designated persons (such as MP’s and public
figures);
- Payment of 2007/08 balancing payment;
- Payment of 2008/09 first payment on account.
1 February 2009 First fixed penalty
of £100 charged if the self assessment tax return
was not filed by 31 January 2008. (If return issued
after 31 October 2007 this date is revised to three
months from the date of issue stated on the return). |
|
Disclaimer
|
| The information in this tax card is based upon
the 2008 Budget and other earlier announcements and
may be subject to amendment by the Finance Act. |
|
|
-logo-RGB-Word-web.gif){kind=logo}
