Tax Rates, Allowances and Duties

Below are a range of tables highlighting current tax rates, duties, allowances as well as dates and deadlines. Any changes or modifications are made on a regular basis, so please check back regularly to ensure you have the latest data.

Income Tax Rates

	2011-12	2012-13
Starting rate band to (savings income only)	£2560*	£2710*
Tax rate (savings income only)	10%	10%*
Basic rate band - next	£35,000	£34,370
Non-savings rate	20%	20%
Savings Rate	20%	20%
UK dividend rate	10%	10%
Higher rate - income over	£35,000	£34,370
Higher tax rate	40%	40%
Additional tax rate – over £150,000	50%	50%
UK dividend rate	32.50%	32.50%
UK dividend rate – over £150,000	42.50%	42.50%
Allowances that reduce Taxable Income
Personal allowances (PA) - under 65	£7,475	£8,105
The personal allowance is progressively withdrawn if income exceeds	£100,000	£100,000
Personal allowances - 65 to 74	£9,940	£10,500
Personal allowances - 75 and over	£10,090	£10,660
Allowances that reduce Tax
Married couple's allowance (MCA)
Tax reduction - 72-74	N/A	N/A
Tax reduction - 75 and over	£729.50	£770.50
The age related allowances are progressively withdrawn if income exceeds	£24,000	£25,400
Minimum PA	£7,475	£8,105
Minimum MCA tax reduction	£280	£296
Ages are as at the end of the tax year.
Tax Shelters
Enterprise Investment Scheme (EIS)	£500,000	£500,000
Venture Capital Trust (VCT)	£200,000	£200,000
"Rent a Room" exempt on gross annual rent	£4,250	£4,250
Construction Industry Scheme deduction rate	20% / 30%	20% / 30%

Pensions & ISAs

Pensions: There 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 £50,000 there is a tax charge at 40% on the excess. This limit does not apply in the year that the full pension benefits are taken.

Maximum age for tax relief	74
Minimum age for taking benefits	55
Lifetime allowance charge	- lump sum paid	55%
	- monies retained	25%
on cumulative benefits exceeding		£1,800,000*
Maximum tax free lump sum		25%
* Subject to transitional protection for excess amount.	£35,000	£37,400
	40%	40%
ISAs: Overall investment limit – from 6 April 2011	£10,680
Including cash maximum of – from 6 April 2011	£5,340

Vehicles

Petrol and Diesel Car Benefits System
The taxable benefit is calculated as a percentage of the car's list price. The calculation begins with the car's C02 emissions in grams per kilometre. Then deduct 125 and divide this result by 5. Round down (4.9 = 4) and then add 15 (petrol) or 18 (diesel). The result is the taxable percentage.
		Petrol	Diesel
Miniminum rate*		15%	18%
Maximum rate		35%	35%
*Special rules apply to very low emission diesel and alternative fuel cars

Reliable emissions data is not widely available for cars first registered before 1 January 1998. For them the taxable percentage figures are:
Up to 1400cc		15%
1401-2000cc		25%
Over 2000cc		35%
Chargeable on employees earning £8,500 or over (including benefits) and directors The list price relates to the day before first registration and includes accessories. There is no upper limit for 2011/12. The list price is reduced by the employee's capital contribution when the car is first made available, subject to a maximum deduction of £5,000. Special rules apply to cars at least 15 years old with a market value of £15,000 or more. Van with Private Use other than home to work - no private fuel provided £3,000 - private fuel provided £3,500.
HM Revenue & Customs Mileage Rates
Car: Approved rates for employees using their own cars for business are 45p per mile for the first 10,000 miles and 25p per mile thereafter. Income tax and NICs may be due on higher rates and tax relief on lower rates. Fuel: Advisory rates for employee private mileage reimbursement or employer reimbursement of business mileage are (effective from 1 June 2011):
	Petrol	Diesel	LPG
Up to 1400cc	15p	12p	11p
1401-2000cc	18p	15p	13p
Over 2000cc	26p	18p	18p
Car Fuel Benefit
Where the cost of all fuel for private use is borne by the employee, the fuel benefit is nil. Otherwise, the taxable benefit is calculated as the car benefit percentage (see above) of £18,800. VAT is payable by the business by reference to the CO2 emissions (rounded down to the next multiple of 5) as follows:
CO2 Band (Applicable from 1 January 2010)		Scale Charge (Three Month Return)	VAT due per vehicle (Three Month Return)
120 or less		157	£26.17
125		236	£39.33
130		252	£42.00
135		268	£44.67
140		283	£47.17
145		299	£49.83
150		315	£52.50
155		331	£55.17
160		346	£57.67
165		362	£60.33
170		378	£63.00
175		394	£65.67
180		409	£68.17
185		425	£70.83
190		441	£73.50
195		457	£76.17
200		472	£78.67
205		488	£81.33
210		504	£84.00
215		520	£86.67
220		536	£89.33
225 or above		551	£91.83
* Based on 20% Standard rate

Corporation Tax

Financial Year to	31 March 2012	31 March 2011
Taxable Profits
First £300,000	20%	21%
Next £1,200,000	27.50%	29.75%
Over £1,500,000	26%	28%

Main Capital Allowances

Motor Cars		On reducing balance. (£3000 restriction for ‘expensive’ cars not replaced before 2014)
- over 160g/km	10%	Special rate pool
- less 160g/km	20%	Plant & Machinery pool
- up to 110g/km	100%	First year allowance
Plant and Machinery
Annual Investment Allowance from 1 April 2010 (companies) and 6 April 2010 (income)	100%	First £100000 (excludes cars) up to 31 March 2012 (companies)
Writing down allowance
- long life assets, integral features	10%	On reducing balance
- other plant & machinery	20%	On reducing balance
Energy-saving technologies	100%	First year allowance
Industrial & agricultural buildings		Abolished 1 April 2011

Value Added Tax

From	04 January 2011	01 April 2010
Standard Rate	20%	17.50%
VAT Fraction	1/6	7/47
Reduced Rate	5%	5%

Taxable Turnover Limits	1 April 2011	1 April 2010
Registration - last 12 months or
next 30 days over	£73,000	£70,000
Deregistration - next year under	£71,000	£68,000
Annual Accounting Schemes	£1,350,000	£1,350,000
Cash Accounting Scheme	£1,350,000	£1,350,000
Flat Rate Scheme	£150,000	£150,000

National Insurance

Rates applicable for 2012-13

	Employer	Employee
Class 1 (not contracted out)	(Secondary)	(Primary)
Lower earnings limit		£107
Employee earnings threshold		£146
Upper accruals point		£770
Upper earnings limit		£817
Payable on weekly earnings of:
£107.01 - £144.00	None	0%
£144.01 - £146.00	13.8%	0%
£146.01 - £770.00	13.8%	12%
£770.01 - £817.00*	13.8%	12%
Over £817*	13.8%	2%
Over state retirement age	As above	Nil
*Above upper accruals point so non-contributory
Class 1A on relevant benefits	13.8%	Nil
Class 2 Self Employed	£2.65 per week
Limit of net earnings for exception	£5,595 per annum
Class 3 Voluntary	£13.25 per week
Class 4**Self employed on profits
£7,605 - £42,475	9%
Excess over £42,475	2%

**Exemption applies if state retirement age was reached by 6 April 2012

Capital Gains Tax

	2011-12	2010-11
Taxed as top slice of savings income up to 22 June 2010	18%	18%
On or after 23 June 2010 gains up to £37,400		18%
From £35,000	28%	28%
Annual Exemption
- individual	£10,600	£10,100
- settlement	£5,300	£5,050
Transfers between spouses and civil partners living together are exempt.
From 23 June 2010 qualifying gains under Entrepreneur's releif will be taxed at 10%
Prior to 22 June 2010 a reduction of 4/9 of gain applied.
The "Lifetime" total is increased to £10 million from 5 April 2011 (£5 million for period 23 June 2010 to 5 April 2011 and £2 million for period 6 April 2010 to June 2010)

Class 1 (not contracted out)	Employer	Employee
Lower earnings limit		£102
Payable on weekly earnings of
£139.01 - £770	13.8%	12%
£770.01 - £817*	13.8%	12%
Over £817*	13.8%	2%
Over state retirement age	As above	Nil
*Above upper accruals point so non-contributory
Class 1A on relevant benefits	13.8%	Nil

Class 2 Self employed	£2.50 per week
Limit of net earnings for exception	£5,315 per annum

Class 3 Voluntary	£12.60 per week

Class 4* Self employed on profits
£7,225 – £42,475	9%
Excess over £42,475	2%

*Exemption applies if state retirement age was reached by 6 April 2011

Inheritance Tax

				2011-12	2012-13
Nil rate band				£325,000	£325,000
Rate of tax on balance
- chargeable lifetime transfers				20%	20%
- transfers on, or within, 7 years of death				40%	40%
*Unused amount available to spouse or civil partner on second death
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. This may then be reduced:
Years before death:	0-3	3-4	4-5	5-6	6-7
Tax reduced by	0%	20%	40%	60%	80%>

Main Exemptions
1. Most transfers between spouses
2. The first £3,000 of lifetime transfers in any tax year (husand and wife each have own exemption) plus an unused balance from previous year
3. Gifts of up to but not exceeding £250 p.a. to any number of persons
4. Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
5. Gifts in consideration of marriage / civil partnership of up to £5,000 by a parent, £2,500 by a grandparent, or £1,000 by any other person
6. Gifts to charities, whether made during lifetime or on death

Stamp Taxes

Stamp duty is payable at a rate of 0.5% on transfers of shares and securities. On the transfer of residential property, the stamp duty is as follows:
Value up to £125,000*	nil
Over £125,000* - £250,000	1%
Over £250,000 - £500,000	3%
Over £500,000	4%
Over £500,000 - £1 million (residential)	4%
Over £1 million (residential)	5%
*£150,000 for property in Enterprise Areas

For first time buyers the threshold for residential property is £250,000 for transaction in period 25 March 2010 to 25 March 2012

Selected Rates

Rates applicable for 2011- 12

Basic Retirement Pension			£
- Single Person			102.15
- Married Couple			163.35

Child Benefit
- First eligible child			20.30
- Each subsequent child			13.40

Statutory Pay Rates
Average weekly pay £102 or over
Sick (SSP)
Standard rate			81.60
Maternity (SMP)
90% of average weekly pay			First 6 weeks
Max. £128.78 - Min. 90% average weekly pay			Next 33 weeks

Adoption (SAP):			39 weeks
Paternity (SPP):			one week or fortnight
SAP/SPP - 90% of average weekly pay			Max £128.73

Example rates:
Jobseeker Allowance
- Single person			67.50
- Married couple			105.95
National Minimum wage
Age	Over 21	18-21	16 and 17
From 1 October 2010	£5.93 p.h.	£4.92 p.h.	£3.64 p.h.
From 1 October 2011	£6.08 p.h.	£4.98 p.h.	£3.68 p.h.
*Apprentice rate £2.60

Key Dates & Deadlines

	2011-12	2012-13
Income Tax and Class 4 NIC
1st payment on account 31 January	2012	2013
2nd payment on account 31 July	2012	2013
Balancing payment 31 January	2013	2014

Capital Gains Tax 31 January	2013	2014

Corporation Tax	9 months after the end of accounting period (or by quarterly instalments if large company)

2011-12 Returns Filing and Issuing Deadlines
19 May 2012	P14, P35, P38, P38A and CIS36
31 May 2012	Issue P60s to employees
6 July 2012	P9D, P11D and P11 D(b) - appropriate copies to employees
31 October 2012	Paper Self Assessment Tax Return
31 January 2013	Online Self Assessment Tax Return

2011-12 Class 1A NICs on Relevant Benefits
19 July 2012	Payment Due

Late filing of self assessment tax return for 2011/12 will attract non-tax geared penalties commencing at £100 1 Feburary 2013

Tax Rates, Allowances and Duties

Rates applicable for 2012-13

Rates applicable for 2011- 12

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