Email:
enquiries@count-accountancy.comTel:
01563 578900Fax:
01563 578901Address:
Ayrshire Business CentreP.O. Box 26037
Kilmaurs, Ayrshire
Scotland
KA3 2YG
Vat & Tax Rates
| Stamp Taxes | |||
Income Tax
| Rates | 2007 – 2008 | 2008 – 2009 | 2009-2010 |
| Starting rate band to | £2,230 | £2,320 | £2,440 |
| Tax rate | 10% | 10% | 10% |
| Basic rate band – next | £32,370 | £34,800 | £37,400 |
| Non-savings rate | 22% | 22% | 22% |
| Savings rate | 20% | 20% | 20% |
| UK Dividend Rate | 10% | 10% | 10% |
| Higher rate - income over | £34,600 | £34,800 | £37,400 |
| Higher tax rate | 40% | 40% | 40% |
| UK dividend rate | 32.5% | 32.5% | 32.5% |
| Allowances that reduce Taxable Income | |||
| Personal Allowance (PA) - under 65 | £5,225 | £6,035 | £6,475 |
| - 65-74 | £7,550 | £9,030 | £9,490 |
| - 75 and over | £7,690 | £9,180 | £9,640 |
| The age-related allowances are progressively withdrawn if income exceeds |
£20,900 | £21,800 | £22,900 |
| Minimum PA | £5,225 | £6,035 | £6,475 |
| Minimum Married Couple’s Allowance | £2,440 | £2,540 | £2,670 |
| *Ages are as at the end of the tax year | |||
| Tax Shelters | |||
| Enterprise Investment Scheme up to | £400,000 | £500,000 | £500,000 |
| Venture Capital Trust up to | £200,000 | £200,000 | £200,000 |
| Rent a Room | |||
| Exempt on Gross Annual Rent | £4,250 | £4,250 | £4,250 |
| Construction Industry Scheme | |||
| Standard (Registered) | 20% | 20% | 20% |
Pensions and Savings
PensionsThere is no limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual’s UK relevant earnings or £3,600. If total pension input exceeds the annual allowance of £235,000 there is a tax charge at 40% on the excess. This limit does not apply in the year that full pension benefits are taken.
| Minimum age for tax relief | 74 |
| Minimum age for taking benefits | 50 |
| Lifetime allowance charge - lump sum paid | 55% |
| - monies retained | 25% |
| Retained on cumulative benefits exceeding | £1,650,000* |
| Maximum tax-free lump sum | 25% |
Overall investment limit |
£7,200 |
| Including cash maximum of | £3,600 |
Vehicle Benefits
Car BenefitThe tax you pay on your company car is governed by four factors:
The list price of the car, on the day before it was first registered, plus certain accessories
The rate at which the car emits carbon dioxide (CO2)
The fuel type (for most types of car, this is all the information you need to work out the taxable benefit)
Your highest rate of income tax You can find your taxable percentage for 2009/10 using the following table:
| CO2 in g/km | Taxable % | CO2 in g/km | Taxable % | ||
| Petrol | Diesel | Petrol | Diesel | ||
| Less than 121 | 10% | 13% | 185-189 | 25% | 28% |
| 121-139 | 15% | 18% | 190-194 | 26% | 29% |
| 140-144 | 16% | 19% | 195-199 | 27% | 30% |
| 145-149 | 17% | 20% | 200-204 | 28% | 31% |
| 150-154 | 18% | 21% | 205-209 | 29% | 32% |
| 155-159 | 19% | 22% | 210-214 | 30% | 33% |
| 160-164 | 20% | 23% | 215-219 | 31% | 34% |
| 165-169 | 21% | 24% | 220-224 | 32% | 35% |
| 170-174 | 22% | 25% | 225-229 | 33% | 35% |
| 175-179 | 23% | 26% | 230-234 | 34% | 35% |
| 180-184 | 24% | 27% | 235 and over | 35% | 35% |
How to find out how much CO2 your company car emits - see: - The car’s registration document
- Your dealer
- The data pages of car magazines (current models)
- The Vehicle Certification Agency - www.vca.gov.uk
- The website of the Society of Motor Manufacturers and traders - www.smmt.co.uk - Reliable emissions data is not widely available for cars registered before 1 January 1998. For them, the following taxable percentages apply, regardless of fuel type.
| Engine Capacity | Taxable % |
| Up to 1400cc | 15% |
| 1401 – 2000cc | 22% |
| Over 2000cc | 32% |
Car Fuel Benefits
If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due. The taxable car fuel benefit, for 2008/09, is calculated by multiplying £16,900 by the same percentage as applies (or would apply) for the car benefit. Example: A company car driver has a car which, on the day before it was first registered, had a list price of £18,000. It runs on petrol, and emits 177 g/km of CO2. If we assume the driver pays tax at 40%, the annual tax bill on the car is: £18,000 x 23% x 40% = £1,565. If the employer provides any fuel used for private journeys and is not reimbursed for the cost, the 2008/09 tax bill for the fuel is: £16,900 x 23% x 40% = £1,554.80
Company Vans
The taxable benefit for the unrestricted use of company vans is £3,000 (with no reduction for older vans) plus a further £500 of taxable benefit if fuel is provided by the employer for private travel.
| Van and fuel charge | Van | Fuel | Total |
| Tax (20% taxpayer) | £600 | £100 | £700 |
| Tax (40% taxpayer) | £1,200 | £200 | £1,400 |
| Employer’s class 1A NICs | £384 | £64 | £448 |
Van drivers can avoid a benefit charge if they agree not to use the van for personal journeys. Driving to and from work is acceptable so long as there is a reasonable amount of business use.
Corporation Tax
| Financial Year from | 1 April 2007 | 1 April 2008 | 1 April 2009 |
| Small Companies Rate | 20% | 21% | 21% |
| Small Companies Rate can be claimed by qualifying companies with profits at a rate not exceeding | £300,000 | £300,000 | £300,000 |
| Marginal Small Companies Relief Lower Limit | £300,000 | £300,000 | £300,000 |
| Marginal Small Companies Relief Upper Limit | £1,500,000 | £1,500,000 | £1,500,000 |
| Marginal Small Companies Relief Fraction | 1/40 | 7/400 | 7/400 |
| Main Rate of Corporation Tax | 30% | 28% | 28% |
| Special rate for unit trusts and open-ended investment companies | 20% | 20% | 20% |
Main Capital Allowances
| Motor Cars | 25% Max £3,000 p.a. per car |
| Plant & Machinery: 1st year allowance | 50% Small Firms |
| 40% Medium-sized Firms | |
| Writing Down Allowance | 20% On Reducing Balance |
| Energy Saving | 100% 1st Year Allowance |
| Industrial & Agricultural Buildings | 3% of Building Cost |
Value Added Tax
| From | 1 April 2007 | 1 April 2008 | 1 Dec 2008 (for 13 months) |
| Standard Rate | 17.5% | 17.5% | 15% |
| VAT Fraction | 7/47 | 7/47 | 3/23 |
| Taxable Turnover Limits | |||
| Registration - Last 12 months or next 30 days over | £64,000 | £67,000 | £68,000 |
| De-Registration - Next 12 months under | £62,000 | £65,000 | £66,000 |
| Annual Accounting Scheme | £1,350,000 | £1,350,000 | £1,350,000 |
| Cash Accounting Scheme | £1,350,000 | £1,350,000 | £1,350,000 |
| Flat Rate | £150,000 | £150,000 | £150,000 |
National Insurance
| 2008 - 2009 | 2009 - 2010 | |
|
Employees Class 1 NIC Earnings at or above lower limit Standard Rate contracted in contracted out contracted in and out |
Earnings pw
0% up to £90
11% on £105.01 - £770 9.4% on £105.01 - £770 1% over £770 |
Earnings pw
0% up to £95
11% on £110.01 -£844 9.4% on £110.01 - £844 1% over £844 |
| Employers Class 1 NIC Contracted in Below £105 / £110 Over £105 / £110 Contracted out Below £105 / £110 Over £105 / £110 Over £770 / |
NIL 12.8% SR MP NIL 9.1%, 11.4%, 12.8%, 12.8% |
NIL 12.8% SR MP NIL 9.1%, 11.4%, 12.8%, 12.8% |
| Class 2 - Self-employed rate Small earnings exception | £2.30 per week £4,825 per year | £2.40 per week £5,075 per year |
| Class 3 - Voluntary rate | £8.10 per week | £12.05 per week |
| Class 4 - Self-employed rate
Lower limit of earnings Upper limit or earnings 1% on earnings over |
8%
£5,435 per year £40,040 per year £40,040 per year |
8%
£5,715 per year £43,875 per year £43,875 per year |
Capital Gains Tax
| 2008 - 2009 | 2009 - 2010 | |
| Individuals | 18% | 18% |
| Annual Exemptions Individuals and personal representatives Trusts generally |
£9,600 £4,800 | £10,100 £5,050 |
| Chattels Exemption (5/3 taxable on excess) | £6,000 | £6,000 |
| Taper relief - for disposals by individuals and trusts before 5 April 2008 | |||||
| Gains on business assets | Gains on non-business assets | ||||
| Period asset held (years) | % of gain chargeable | Equivalent tax rates for higher rate / basic rate taxpayer | Number of complete years after 5 April 1998 for which asset held | % of gain chargeable | Equivalent tax rates for higher rate / basic rate taxpayer |
| 0-1 | 100 | 40/20 | 0-2 | 100 | 40/20 |
| 1-2 | 50 | 20/10 | 3 | 95 | 38/19 |
| 2 | 25 | 10/5 | 4 | 90 | 36/18 |
| 5 | 85 | 34/17 | |||
| 6 | 80 | 32/16 | |||
| 7 | 75 | 30/15 | |||
| 8 | 70 | 28/14 | |||
| 9 | 65 | 26/13 | |||
| 10 or more | 60 | 24/12 | |||
For non-business assets acquired before 17 March 1998, these qualify for an additional bonus year to the period to which they are treated as held after 5 April 1998.
Entrepreneurs’ Relief - from 6 April 2008 the first £1 million of gains on certain types of assets will be charged to CGT at an effective rate of 10%. This is a lifetime limit.
Inheritance Tax
| Reduced tax charge on gifts within 7 years of death Years before death |
0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
| % of inheritance tax payable | 100% | 80% | 60% | 40% | 20% |
- Most transfers between spouses
- The first £3,000 of lifetime transfers in any tax year (husband and wife each have own exemption) plus any unused balance from the previous year
- Gifts of up to but not exceeding £250 p.a. To any number of persons
- Gifts made out of income that form part of normal expenditure and do not reduce the standard of living
- Gifts in consideration of marriage or civil partnership of up to £5,000 by a parent, £2,500 by a grandparent, or £1,000 by any other person
- Gifts to charities, whether made during lifetime or death
Stamp Taxes
Stamp Duty is payable at a rate of 0.5% on transfers and securities. On the transfer of residential property, the stamp tax is:
| Value | Land in disadvantaged areas | Other land in the UK | ||
| Residential | Non-residential | Residential | Non-residential | |
| Up to £125,000 | 0% | 0% | 0% | 0% |
| £125,001 - £150,000 | 0% | 0% | 1% | 0% |
| £150,000 - £250,000 | 1% | 1% | 1% | 1% |
| £250,001 - £500,000 | 3% | 3% | 3% | 3% |
| Over £500,000 | 4% | 4% | 4% | 4% |
Selected Rates
| Weekly Benefit | ||||
| 2006-2007 | 2007-2008 | 2008-2009 | 2009-2010 | |
| Basic Retirement Pension | ||||
| Single Person | £84.25 | £87.30 | £90.70 | £95.25 |
| Married Couple | £134.75 | £139.60 | £145.05 | £152.30 |
| Child Benefit | ||||
| First eligible child | £17.45 | £18.10 | £18.80 | £20.00 |
| Each subsequent child | £11.70 | £12.10 | £12.55 | £13.20 |
| Statutory Sick Pay (SSP) | £70.05 | £72.55 | £75.40 | £79.15 |
| Statutory Maternity Pay (SMP) | ||||
| 90% of average weekly pay | First 6 weeks | First 6 weeks | First 6 weeks | First 6 weeks |
| Remaining weeks | £75.60 | £78.30 | £117.18 | £123.06 |
| Paternity Pay (SPP) & Adoption Pay (SAP) |
||||
| the lesser of 90% of average weekly earnings or | Max £108.85 Min £75.60 |
Max £112.75 Min £78.30 |
Max £117.18 Min £81.00 |
Max £123.06 Min £85.50 |
| Jobseekers Allowance | ||||
| Single Person | £57.45 | £59.15 | £60.50 | £64.30 |
| Married Couples & Civil Partnerships |
£90.10 | £92.80 | £94.95 | £100.95 |
| National Minimum Wage (per hour) |
From 1 Oct 06 |
From 1 Oct 07 |
From 1 Oct 08 |
From 1 Oct 09 |
| Over 21 | £5.35 | £5.52 | £5.73 | £5.80 |
| 18 – 21 | £4.45 | £4.60 | £4.77 | £4.83 |
| 16 and 17 | £3.30 | £3.40 | £3.53 | £3.57 |