Pension Contributions
The maximum contributions available for tax relief are the greater of:
• £3,600; and
• 100% of the net relevant earnings for the year.
This is subject to a maximum of £40,000. There are provisions to
carry forward unused reliefs for 3 years.
Contributions are paid net of basic rate tax.
Relief has to be claimed for the tax year of payment.
A tax charge may arise if the value of the pension fund at retirement
exceeds the lifetime limit. The lifetime limit is £1,250,000.
HM Revenue & Customs
Authorised Mileage Rates
Rates for 2015/16
All cars – first 10,000 miles
All cars – all additional miles
Motorcycles
Pedal cycles
Tax free rate per mile
45p per mile
25p per mile
24p per mile
20p per mile
These rates per mile apply where employers require employees to
repay fuel costs for private travel or when employees are reimbursed
for business travel in company cars.
The rates below apply from 1 March 2015. The rates are reviewed
four times a year. Any changes take effect on 1 March, 1 June, 1
September and 1 December.
Hybrid cars are treated as petrol cars for this purpose.
Size of engine
Petrol
LPG
Size of engine
Diesel
1401 – 2000cc
13p
10p
1601 – 2000cc
11p
2001cc and over
11p
20p
8p
14p
0 – 1600cc
2001cc and over
Inheritance Tax
Nil rate band (see also below)
Rate of tax on excess
Lower rate*
Annual exemption per donor
Annual gifts per donee
2015/16
£325,000
40%
36%
£3,000
£250
Tax rate Within basic band
Higher rate
Entrepreneurs’ rate
Annual exemption
- individuals
- settlements
Chattels exemption (proceeds)
2015/16
2014/15
£11,100
£5,550
£6,000
£11,000
£5,500
£6,000
18%
28%
10%
18%
28%
10%
Tax Tables
2015/2016
Entrepreneurs’ Relief
Entrepreneurs’ relief applies to qualifying disposals of businesses, shares
in personal companies and assets used in a personal partnership or
company. Qualifying conditions exist. A lifetime total of £10million of gains
can qualify for relief.
Main Capital Allowances
Advisory Fuel Rates For Company Cars
0 – 1400cc
Capital Gains Tax
9p
14p
2014/15
£325,000
40%
36%
£3,000
£250
If an individual’s nil rate band is not fully utilised on death, the nil rate
band available on the death of his or her spouse, at a later date, is
increased. The maximum joint nil rate band for married couples and
civil partners is therefore £650,000.
*A lower rate of 36% applies where 10% or more of the deceased’s
net estate is left to charity.
2015/16
2014/15
Plant & Machinery
Main Rate
18%
18%
Special Rate
8%
8%
Annual investment allowance: 100% rate* £500,000**
£500,000
Energy efficient equipment
100%
100%
* Annual Investment Allowance excludes expenditure on motor cars.
Where an accounting period is less than 12 months in length, the
maximum is restricted.
**This applies until 31 December 2015. The figure that will apply from 1
January 2016 will be announced as part of the 2015 Autumn Statement.
Motor cars
The rate of allowances depends on the car’s CO2 emissions. From 1
April 2015 the rates are:
Emission band
Rate
Over 130g/km
8%
96 to 130g/km
18%
Up to 95g/km
100%*
Cars acquired from April 2009 are “pooled” with other cars in the same CO2
emissions band where there is no private use.
Balancing allowances are not available on disposal, unless there is private
use restriction on allowances of the vehicle (sole traders and partnerships).
Where there is no approved CO2 figure, the car goes into the 18% pool.
*Expenditure only applies to new cars which are unused and not
second hand.
how
w
o 015
Knh
e2 t
t
ge
Budects
aff ou!
y
Income Tax
Car & Fuel Benefits
2015/16
£
Allowances that reduce Taxable Income
Personal allowance
- basic
10,600
- born before 6/4/1938
10,660
Allowances that reduce Tax
Married couples - maximum
835.50
2014/15
£
10,000
10,660
816.50
Notes
• Married couples allowance is only available where one of the
spouses was born before 6 April 1935.
• The higher rates of personal allowances for older people are
reduced by £1 for each £2 of income exceeding £27,700 (2014/15
£27,000) until the basic allowance of £10,600 is reached. Similar
limits apply to the married couples allowance (basic allowance
is £322.00)
• The personal allowance is restricted for individuals whose income
exceeds £100,000, by £1 for each £2 of income exceeding
£100,000, until it is reduced to nil.
Up
• to £1,060 of unused personal allowance can be transferred to a
spouse provided the recipient spouse is a basic rate taxpayer.
Income Tax Bands
Basic rate band – up to
Additional rate – income above
Income Tax Rates
Basic rate
Higher rate
Additional rate
Dividends
Basic rate
Higher rate
Additional rate
2015/16
£
2014/15
£
31,785
150,000
31,865
150,000
20%
40%
45%
20%
40%
45%
10%
32.5%
37.5%
10%
32.5%
37.5%
A 0% starting rate band of up to £5,000 applies to savings income for certain individuals with low income.
Rate applicable to trusts
Dividend trust rate
Starting rate band for trusts
45%
37.5%
1,000
45%
37.5%
1,000
Corporation Tax
Year commencing
First £300,000
Next £1,200,000
Balance over £1,500,000
1 April 2015
20%
20%
20%
1 April 2014
20%
21.25%
21%
This card is issued as a guide to current
legislation. No decision based on its
contents should be taken without
consulting a specialist adviser.
Car Benefit (For tax & employer’s NIC)
Car benefit is based on the defined list price of the car, less a maximum of
£5,000 capital contributions by employee. There is no cap on the list price
used. There are special rules for classic cars.
C02 Emissions (g/km)
0-50
51 - 75
76 - 94
95 and over
Rate of list price
5%
9%
13%
14% - 37% *
* The benefit increases by a sliding scale of 1% of list price for every 5g/km of
additional emissions, subject to maximum charge of 37%.
A supplement of 3% of list price is added for diesel cars (the maximum charge
is 37%).
A reduction is made if a car is unavailable for use or if employee contributions are
made.
Car Fuel Benefits
Based on CO2 emissions in the same way as company car benefit. The CO2
percentage figure is multiplied by a “set figure” for cost. The set figure for 2015/16
is £22,100 (2014/15 = £21,700)
Vans Under 3.5 Tonnes
The taxable benefit is £3,150 (+£594 for private fuel) regardless of the age
of the van.
There are certain exceptions to this benefit, depending on the use to which
the van is put.
Vans with zero carbon dioxide emissions are subject to a reduced benefit
charge.
Value Added Tax
From 1 April 2015
20%
1/6
Standard rate
VAT Fraction
Taxable Turnover Limits
(all figures are net of VAT)
Registration
- last 12 months or
£82,000
coming 30 days over
Deregistration
- coming year under
£80,000
Cash and annual accounting schemes
- coming year up to
£1,350,000
Flat rate scheme for small businesses
entering scheme:
- coming year up to
£150,000
- within scheme: last 12 months
or coming 30 days over
£230,000
CARLISLE
T: 01228 530913
e: [email protected]
To 31 March 2015
20%
1/6
£81,000
£79,000
£1,350,000
£150,000
£230,000
PENRITH
T: 01768 864466
e: [email protected]
National Insurance
2015/16 National Insurance Contributions
Class 1 – Employment Income
Weekly Earnings
Employer Employee
Nil
Nil
Up to £112.00 (Lower Earnings Limit)
Nil
*Nil
£112.01 to £155.00 (Primary Threshold)
£155.01 to £815.00 (Upper Limit)
13.8%
12%
£815.01 and above
13.8%
2%
Men and women over state pension age
As above
Nil
Class 1A NIC – On benefits in kind
13.8%
Nil
Class 2 – Self Employed
£2.80 per week
Small earnings exception limit
£5,965 per annum
Class 3 – Voluntary
£14.10 per week
Class 4 – Self Employed
on profits £8,060 - £42,385
9%
on profits above £42,385
2%
* Employees in this wage band are entitled to contributory benefit entitlements.
National
Minimum Wage
Hourly Rates - 1 October 2014 to 30 September 2015
Apprentice rate
£2.73 between 1 Oct 14 and 30 Sept 15
Age 16 and 17
£3.79 between 1 Oct 14 and 30 Sept 15
Age 18 to 20 inclusive
£5.13 between 1 Oct 14 and 30 Sept 15
Age 21 or over
£6.50 between 1 Oct 14 and 30 Sept 15
Stamp Duty Land Tax
UK (Excluding Scotland)
Scotland (Land & Buildings
Transaction Tax)
Residential (Banded)
Residential (Banded)
Price of property £
%
Price of property £
%
The first 125,000
Nil
The first 145,000
Nil
The next 125,000
2
The next 105,000
2
The next 675,000
5
The next 75,000
5
The next 575,000
10
The next 425,000
10
Above 1,500,000
12
Above 750,000
12
A 15% SDLT rate applies to residential properties purchased by certain
non-natural persons
Non-residential (Flat Rate)
Non-residential (Banded)
Price of property £
%
Price of property £
%
Up to 150,000
Nil
The first 150,000
Nil
150,001 – 250,000
1
The next 200,000
3
250,001 – 500,000
3
Above 350,000
4.5
Over 500,000
4
LANCASTER
T: 01524 849588
e: [email protected]