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UK Tax Tables
Income Tax Rates
|
| |
2008/09 (£) |
2007/08 (£) |
| Starting rate 10% on first* |
2,320 |
2,230 |
| Basic rate 20% (2007/08 - 22%) 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 |
7/400 |
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. |
|
|
 |
| Should you not have Adobe Acrobat Reader on your
system, click on the logo above to download a free copy from the
official Adobe web site. |
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