| |
J.HAM
& Co Ltd Chartered Accountants
Tax Rates
| Income Tax |
2007-2008
Taxable Income |
Rate |
Tax on band |
Cumulative Tax
Tax on top of Band
|
| First £2230 |
10% |
£2230 |
£2230 |
| Next £32,370 |
22% |
£7121.40 |
£7344.40 |
| £33,301+ |
40% |
|
|
2008-2009
Taxable Income
|
Rate |
Tax on band |
Cumulative Tax
Tax on top of Band |
| First £36,000 |
20%* |
£7200 |
£7200 |
| £36,000 + |
40% |
|
|
* For 2008-2009 there is 10%
starting rate for savings income only, with a limit of
£
2,320. If an individual’s taxable non-savings income
is above this limit then the 10%
savings rate will not be applicable. There are no changes
to the 10% dividend ordinary rate or
the 32.5% dividend upper rate for 2008-2009. |
| Income Tax - Summary of Allowances
and Reliefs |
| Personal allowance |
Age 65-74*
Age 75 or over*
|
2007-2008
£5225
£7550
£7690
|
2008-2009
£5435
£9030
£9180
|
| Married couples allowance |
Born on or after
6/4/1935
|
Nil |
|
| |
Born before 6/4/1935* |
£6285+ |
£6535† |
| |
Age 75 or over* |
£6365+ |
£6625† |
Blind person's
allowance |
|
£1730 |
£1800 |
* If income exceeds £20,900
for 2007-2008 or £21,800 for 2008-2009 these age
related
allowances are reduced by 50% of the excess until the
figure is reduced to; £2,440 for
2007-2008 or £2,540 in the case of the married
couple’s allowance; and £5,225 for
2007-2008 and £5,435 for 2008-2009 in the case
of the personal allowance.
†
Relief restricted to tax rate of 10% |
| Capital Gains Tax (individuals) |
2007-2008
Gains
|
Rate |
2008-2009
Gains |
Rate |
| Up to £9200 |
Nil |
Up to £9600† |
Nil |
| £9201 |
Gains are charged at 20%* where the gains when added
to total income are below the basic rate limit and 40%
in excess of that limit. |
£9601+ |
18% regardless of
total income |
| *10% to the extent that this rate is available † Each
spouse is entitled to the annual exemption |
| Pension Plans for Employees/Self Employed |
| Maximum annual premium allowable for tax
is 100% of earnings up to: |
| |
2007-2008 |
|
2008-2009 |
| |
£225000† |
|
£235000† |
| † Subject to a deminimus premium
limit of £3,600 per annum |
| Standard Lifetime Allowance |
|
|
| |
Tax Year |
|
Amount (£) |
| |
2007-2008 |
|
£1,600,000 |
| |
2008-2009 |
|
£1,650,000 |
| |
2009-2010 |
|
£1,750,000 |
| |
2010-2011 |
|
£1,800,000 |
| National Insurance Contributions 2008-2009 |
Class 1
(Employer's) |
|
|
|
| |
Weekly |
Monthly |
Yearly |
Lower Earning
Limit |
£90.00 |
£390.00 |
£4680.00 |
| No employer’s contribution payable
if earnings are less than lower earnings threshold. |
Weekly contributions
if earnings exceed earnings threshold |
£105.00
|
Contracted in
12.8% on all
earnings above
£105
|
Contracted out
9.1%* on earnings between £105 and £770
12.8% on earnings above £770 |
* The contracted out rate in respect of
Money Purchase Pension Schemes is 2.3% higher than
this rate which relates to Salary Related Pension Schemes. |
Class 1
(Employee's) |
|
|
|
| |
Weekly |
Monthly |
Yearly |
Lower earnings Limit
(LEL) |
£90.00 |
£390.00 |
£4680.00 |
Earnings Threshold
(EET) |
£105.00 |
£453.30 |
£5435.00 |
Upper Earnings Limit
(UEL) |
£770.00 |
£3337.00 |
£40040.00 |
* Upper Earnings Limit for employee only
- No EUL for employer
No National Insurance contributions are paid if earnings
are less than EET. |
| Weekly contribution |
Contracted in |
|
Contracted out |
| If earnings exceed Earnings Threshold |
11% on earnings between £105 and £770 plus 1% on all
earnings over £770 |
|
9.4% on earnings between £105 and £770 Plus 1% on all
earnings above £770 |
| Note: a reduced rate of contribution is
payable by certain widows and married women. |
Class 2
(Self employed) |
From April 2007 |
|
|
| Earnings over £4825 per annum |
£2.30 per week |
|
|
| Class 3 (Voluntary) |
£8.10 per week |
|
|
| Class 4 (Self employed, additional levy) |
|
|
| Profits between £5,435 and £40,040
per annum 8% plus 1% on profits above £40,040. |
| National Insurance Benefits (per week) |
| |
2007-2008 |
2008-2009 |
| |
Single
person |
Married
couple |
Single
person |
Married
couple |
| Retirement Pension |
£87.30 |
£139.60 |
£90.70 |
£145.05 |
| Jobseekers Allowance |
|
|
|
|
| Age 18-24 |
£46.85 |
|
£47.95 |
|
| Age 25 or over |
£59.15 |
|
£60.50 |
|
| Short Term Incapacity Benefit |
|
|
|
|
| Lower Rate |
£61.35 |
|
£63.75 |
|
| Higher Rate |
£72.55 |
|
£75.40 |
|
| Bereavement Benefit (lump sum) |
£2000.00 |
|
£2000.00 |
|
| Widowed Parents Allowance (basic) |
£87.30 |
|
£90.70 |
|
| Widow’s Pension (standard rate) |
£87.30 |
|
£90.70 |
|
Maternity Allowance
(up to 18 weeks) |
£112.75 |
|
£117.18 |
|
| Child Benefit (first child) |
£18.10 |
|
£18.80 |
|
| Second and each subsequent child |
£12.10 |
|
£12.55 |
|
Earnings related benefits,
additional benefit for dependants and other benefits
may
be payable depending on claimant’s circumstances. |
| Statutory Sick Pay |
| 2007-2008 |
|
2008-2009 |
|
Average weekly
earnings |
Weekly rate of
Statutory sick pay |
Average weekly
earnings |
Weekly rate of
statutory sick pay |
| Up to £86.99 |
£ NIL |
Up to £89.99 |
£ NIL |
| £87.00 and above |
£72.55 |
Up to £90.00+ |
£75.40 |
| Statutory Maternity Pay |
| |
2007-2008 |
2008-2009 |
Higher weekly rate- First
6 Weeks |
9/10 of employees average weekly earnings |
9/10 of employees average weekly earnings |
| After 6 weeks |
The lower of 9/10 of employees average weekly earnings,
or £112.75 |
The lower of 9/10 of employees average weekly earnings,
or £117.18 |
| Individual Savings Account (ISA) |
| |
2007-2008 |
|
2008-2009 |
| Maxi ISA |
£7000 |
Cash account |
£3600
|
| Mini ISA |
|
Stocks & shares account |
£7200 |
| Cash |
£3000 |
|
|
| Shares |
£4000 |
|
|
| Inheritance Tax |
Death transfers from
6/4/07 to 5/4/08
Gross cumulative transfer |
Rate |
from 6/4/08 to 5/4/09
Gross cumulative transfer |
Rate |
| Up to £300,000 |
NIL |
Up to £312,000 |
NIL |
| £300,001 and above |
40% |
£312,001 and above |
40% |
| Corporation Tax |
| |
1/4/07 to 31/3/08 |
1/4/08 to 31/3/09 |
| Tax Rate |
30% |
28% |
| Small Company Rate |
20% to £300,000 |
21% to £300,000 |
| Intermediate Profits |
£300,001 - £1,500,000 |
£300,001 - £1,500,000 |
| Reduction Factor |
1/40th |
7/400 |
The Starting Rate and Small Companies Rate
provisions do not apply to Close
Investment Companies |
| Car Benefit Assessment - Directors/Higher
Paid Employee |
Benefit is based on a percentage of the
total list price of car when new, including cost of
accessories. List Price is subject to a maximum of £80,000,
including accessories. An
employee’s capital contribution of up to £5,000
is treated as reducing the list price. There are
special rules for cars over 15 years old valued at more
than £15,000. The cost of conversion
of a car for use by a disabled person is disregarded. |
| Benefit assessed 2007-2008 & 2008-2009 |
|
For those cars first registered
Before 1 January 1998 |
|
From 1 January 1998* |
| Percentage of list price taxable |
|
Percentage of list price taxable |
| 1,400cc or less 15% |
|
1,400cc or less 15% |
| 1,401cc to 2000cc 22% |
|
1,401 to 2,000cc |
| * Applies only to cars for which no emission
data is available. |
| 2008-2009 |
|
|
| Cars first registered on or after 1 January
1998 |
|
CO2 emissions
(gms/km) |
Percentage
of list price
taxable |
CO2 emissions
(gms/km)
|
Percentage
of list price
taxable |
CO2 emissions
(gms/km) |
Percentage
of list price
taxable |
| 120 or below |
10% |
175 |
23% |
210 |
30% |
| 135 |
15% |
180 |
24% |
215 |
31% |
| 150 |
18% |
185 |
25% |
220 |
32% |
| 155 |
19% |
190 |
26% |
225 |
33% |
| 160 |
20% |
195 |
27% |
230 |
34% |
| 165 |
21% |
200 |
28% |
235 |
35% |
| 170 |
22% |
205 |
29% |
- |
- |
Above percentages relate to non-diesel
fuelled cars. There is a supplement charged on certain
diesel
fuelled cars, subject to an overall maximum charge of
35%. Discounts may be available in respect of
cars powered by fuels other than wholly by petrol. |
Car fuel scales 2007-2008 & 2008-2009
For both diesel and non diesel fuel the taxable benefit
is the fixed sum of £16,900
(£14,400 07/08) multiplied by the same percentage
of the list price used to calculate
the car benefit charge.
Scales apply to employees earning over £8,500 and
directors.
Car Benefit Scales reduced by employee’s contributions. |
| Van benefit scales |
Applies to vehicles weighing 3.4 tonnes
or less |
| 2007-2008 |
2008-2009 |
| £3000 |
£3000 |
| Van fuel benefit |
Applies to vehicles weighing 3.4 tonnes or less |
| 2007-2008 |
2008-2009 |
| £500 |
£500 |
| Fixed Profit Car Scheme (FPCS) |
Mileage allowances paid to employees who
use their own cars for business purposes
are not taxable if allowance paid is within certain limits. |
| 2007-2008 |
Rate of allowance |
2008-2009 |
Rate of allowance |
| |
First
10,000 mls |
Excess over
10,000 mls |
|
First
10,000 mls |
Excess over
10,000 mls |
| All cars |
40p |
25p |
All cars |
40p |
25p |
| Each passenger |
5p |
5p |
Each passenger |
5p |
5p |
| Motorcycles |
24p |
24p |
Motorcycles |
24p |
24p |
| Bicycles |
20p |
20p |
Bicycles |
20p |
20p |
The information contained in this leaflet
is based upon the Budget speech of 12 March 2008
and is subject to amendment. |
For further information on how we can help you, why not give J.Ham and Co Ltd chartered accountants a call on 02920 613765 or fill in our no obligation enquiry form Click here
|
|
|
 |
Accounts |
|
Bookkeeping |
|
Payroll |
|
Self Assessments |
|
VAT Returns |
|
Limited Companies |
|
Partnerships |
|
Sole Traders |
|
Individuals |
 |
| |
|
