✔ HM Revenue and Customs
✔ Companies House
✔ Financial Time
✔ Income Tax Rates
✔ Income Tax Reliefs
✔ Tax Credits
✔ Reductions in maximum rates
✔ Pension Premiums
✔ Car, Van and Fuel Benefits
✔ Company cars
✔ Car fuel benefit 2013/14
✔ Van benefit per vehicle 2013/14
✔ Mileage Allowance Payments
✔ Individual Savings Accounts (ISAs)
✔ Corporation Tax
✔ Capital Allowances
✔ Value Added Tax
✔ Capital Gains Tax
✔ Entrepreneur's Relief
✔ Inheritance Tax
✔ Stamp Duty & Stamp Duty Land Tax
✔ National Insurance
2013-2014 | 2012-2013 | ||
Band £ | Rate % | Band £ | Rate % |
---|---|---|---|
Starting rate for Savings 0 - 2,790 | 10* | 0 - 2,710 | 10* |
Basic rate 0 - 32,010 | 20 | 0 - 34,370 | 20 |
Higher rate 32,011 - 150,000 | 40 | 34,371 - 150,000 | 40 |
Additional rate Over 150,000 | 45 | Over 150,000 | 50 |
* The 10% rate is not available if taxable non-savings income exceeds £2,790 (£2,710). It applies to savings income only. Non saving income applies on employment, profit from self employment , pensions, income from property and taxable benefits.
The rates available for dividends are the 10 per cent ordinary rate, the 32.5 per cent dividend upper rate and the dividend additional rate of 42.5 per cent (the dividend additional rate is 37.5 per cent from 2013-14)
Other income taxed first, then savings income and finally dividends.
2013-2014 | 2012-2013 | |
£ | £ | |
---|---|---|
Personal allowance for people born after 5 April 1948 (1) | 9,440 | 8,105 |
born between 6 April 1938 and 5 April 1948/ 65 - 74(2) | 10,500 | 10,500 |
born before 6 April 1938* / 75 and over*(1&2) | 10,660 | 10,660 |
Married couple's allowance (relief at 10%) (3) (Either partner 75 or over and born before 6 April 1935.) | 7,915 | 7,705 |
Blind person's allowance | 2,160 | 2,100 |
1. From 2013-14 The Personal Allowance reduces where the income is above £100, 000 - by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
2. These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. The Personal Allowance for people aged 65 and over (up to and including 2012-13) and born before 6 April 1948 (from 2013-14) can be reduced below the basic Personal Allowance where the income is above £100,000
3. Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent
2013-2014 | 2012-2013 | |
£ | £ | |
---|---|---|
Working Tax Credit | ||
Basic element - maximum Disability element | 1,920 | 1,920 |
Childcare element 70% of eligible costs up to £175 per week (£300 if two or more children). | ||
Child Tax Credit (CTC) | ||
Child element per child - max. | 2,720 | 2,690 |
Family element | 545 | 545 |
1. 41% of income above £6,420* p.a.
2. *If only CTC is claimed, the threshold is £15,910 (£15,860) p.a. The family element of CTC tapers immediately after the child element from April 2012. The withdrawal rate is 41%.
CO2 emissions (gm/km) (round down to nearest 5gm/km) | % of car's list price taxed |
up to 94 | 10 |
95 | 11 |
100 | 12 |
105 | 13 |
110 | 14 |
115 | 15 |
120 | 16 |
125 | 17 |
130 | 18 |
135 | 19 |
140 | 20 |
145 | 21 |
150 | 22 |
155 | 23 |
160 | 24 |
165 | 25 |
170 | 26 |
175 | 27 |
180 | 28 |
185 | 29 |
190 | 30 |
195 | 31 |
200 | 32 |
205 | 33 |
210 | 34 |
215 and above | 35 |
1. For diesel cars add a 3% supplement but maximum still 35%.
2. A 0% rate applies to cars which cannot emit CO2 when driven.
3. A 5% rate applies to cars with emissions which do not exceed 75 gm/km when driven. The diesel supplement can apply to 75 gm/km cars.
4. For cars registered before 1 January 1998 the charge is based on engine size.
5. The list price includes accessories and is not subject to an upper limit.
6. The list price is reduced for capital contributions made by the employee up to £5,000.
7. Special rules may apply to cars provided for disabled employees.
£21,100 x 'appropriate percentage'*
2. *Percentage used to calculate the taxable benefit of the car for which the fuel is provided.
3. The charge does not apply to certain environmentally friendly cars.
4. The 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 £3,000
Fuel benefit £564
The charges do not apply to vans which cannot emit CO2 when driven or if a 'restricted private use condition' is met throughout the year.
2013/14 and 2012/13 | |
Cars and vans | Rate per mile |
---|---|
Up to 10,000 miles | 45p |
Over 10,000 miles | 25p |
Bicycles | 45p |
Motorcycles | 20p |
These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.
2013-2014 | 2012-2013 | |
£ | £ | |
---|---|---|
Overall annual investment limit | 11,520 | 11,280 |
Comprising - cash up to | 5,760 max. | 5,640 max |
Comprising - balance in stocks and shares | 11,520 max | 11,280 max |
Year to 31.3.14 | Year to 31.3.13 | |||
Profits band £ | Rate % | Profits band £ | Rate % | |
---|---|---|---|---|
Small companies rate | 0 - 300,000 | 20* | 0 - 300,000 | 20* |
Marginal (small companies) rate | 300,001 - 1,500,000 | 23.75* | 300,001 - 1,500,000 | 25* |
Main rate | Over 1,500,000 | 23* | Over 1,500,000 | 24* |
Standard fraction | 3/400* | 1/100* |
The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.
*Different rates apply for ring-fenced (broadly oil industry) profit.
The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long life assets but not cars, of up to £250,000 p.a. for expenditure incurred on or after 1 January 2013 (£25,000 for expenditure incurred on or after 6 April 2012 (1 April 2012 for companies)). Special rules apply to accounting periods straddling these dates.
Any costs over the AIA fall into the normal capital allowance pools below. The AIA may need to be shared between certain businesses under common ownership.
The annual rate of allowance is 18%. An 8% rate applies to expenditure incurred on integral features and on long life assets.
A 100% first year allowance may be available on certain energy efficient plant and cars, including expenditure incurred on new and unused zero emission goods vehicles.
For expenditure incurred on cars, costs are generally allocated to one of the two plant and machinery pools. For expenditure incurred on or after 6 April 2013 (1 April 2013 for companies) cars with CO2 emissions not exceeding 130gm/km (previously 160gm/km) receive an 18% allowance p.a. Cars with CO2 emissions over 130gm/km (160gm/km) receive an 8% allowance p.a.
Standard rate | 20% |
Reduced rate | 5% |
Annual Registration Limit - from 1.4.13 (1.4.12 - 31.3.13 £77,000) | £79,000 |
Annual Deregistration Limit - from 1.4.13 (1.4.12 - 31.3.13 £75,000) | £77,000 |
2013/14 | 2012/13 | |
Individuals | £ | £ |
---|---|---|
Exemption | 10,900 | 10,600 |
Standard rate | 18% | 18% |
Higher rate* | 28% | 28% |
Trusts | ||
Exemption | 5,450 | 5,300 |
Rate | 28% | 28% |
*For higher and additional rate taxpayers
For disposals on or after 6 April 2011 the first £10m (£5m for disposals on or after 23 June 2010 and before 6 April 2011) of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.
Death rate % | Lifetime rate % | Chargeable transfers 2013/14 and 2012/13 £'000 |
Nil | Nil | 0 - 325* |
40 | 20 | Over 325* |
Higher rate* | 28% | 28% |
*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.
Annual exemption | £3,000 | Marriage | - parent | £5,000 |
Small gifts | £250 | - grandparent | £2,500 | |
- bride/groom | £2,500 | |||
- other | £1,000 |
Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
% of death charge | 100 | 80 | 60 | 40 | 20 |
Rate | Residential property* | Non-residential | |
Disadvantaged areas* | Other | ||
£ | £ | £ | |
Nil | 0 - 150,000 | 0 - 125,000 | 0 - 150,000 |
1% | 150,001 - 250,000 | 125,001 - 250,000 | 150,001 - 250,000 |
3% | 250,001 - 500,000 | 250,001 - 500,000 | 250,001 - 500,000 |
4% | 500,001 - 1,000,000 | 500,001 - 1,000,000 | Over 500,000 |
5% | 1,000,000 - 2,000,000 | 1,000,000 - 2,000,000 | - |
7% | Over 2,000,000 | Over 2,000,000 | - |
The rules for disadvantaged areas are withdrawn for transactions with an effective date on or after 6 April 2013. Shares and securities - rate 0.5%.
Employee | Employer | ||
Earnings per week | % | Earnings per week | % |
Up to £149 | Nil* | Up to £148 | Nil* |
£149.01 - £797 | 12 | Over £148 | 13.8 |
Over £797 | 2 |
*Entitlement to contribution-based benefits retained for earnings between £109 and £149 per week.
Class 1A (employers) | 13.8% on employee taxable benefits |
Class 1B (employers) | 13.8% on PAYE Settlement Agreements |
Class 2 (self-employed) | flat rate per week £2.70 small earnings exception p.a. £5,725 p.a. |
Class 3 (voluntary) | flat rate per week £13.55 |
Class 4 (self-employed) | 9% on profits between £7,755 and £41,450 plus 2% on profits over £41,450 |