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TAX DATA |
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Income Tax Rates
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2007/08
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2006/07
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Band
£ |
Rate
% |
Band
£ |
Rate
% |
| 0 - 2,230 |
10 |
0 - 2,150 |
10 |
| 2,231 - 34,600 |
22 * |
2,151 - 33,300 |
22 * |
| Over 34,600 |
40 ** |
Over 33,300 |
40 ** |
* Except dividends (10%) and savings income (20%).
** Except dividends (32.5%).
Other income taxed first, then savings income and finally dividends. |
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Income Tax Reliefs
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|
2007/08
£
|
2006/07
£
|
| Personal allowance |
- under 65 |
5,225
|
5,035
|
|
- 65 - 74 * |
7,550
|
7,280
|
|
- 75 and over * |
7,690
|
7,420
|
| Married couple's allowance (relief at 10%) |
- aged less than 75 and born before 6.4.35 * |
6,285
|
6,065
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- 75 and over * |
6,365
|
6,135
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- min. amount |
2,440
|
2,350
|
| * Age allowance income limit |
|
20,900
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20,100
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| (Reduce age allowance by £1 for every £2 of excess income over £20,900.) |
| Blind person’s allowance |
|
1,730
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1,660
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Tax Credits
|
2007/08
£ |
2006/07
£ |
Working Tax Credit (WTC)
Basic element - max. |
1,730 |
1,665 |
Childcare element
80% of eligible costs up to £175 per week (£300 if two or more children). |
Child Tax Credit (CTC)
Child element |
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| per child - max. |
1,845 |
1,765 |
| Family element |
545 |
545 |
| Baby addition |
545 |
545 |
Reductions in maximum rates
37% of income above £5,220* p.a.
* If only CTC is claimed, the threshold is £14,495 p.a. (£14,155). The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income. |
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Pension Premiums
2007/08 and 2006/07
- Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings.
- Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’. Tax relief for large contributions may be spread over several years.
- Any contributions in excess of £225,000 (£215,000), whether personal or by the employer, may be subject to income tax on the individual at 40%.
- No carry back of pension contributions.
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Car and Fuel Benefits
Company cars 2007/08 and 2006/07 |
| CO2 emissions (gm/km) (round down to nearest 5gm/km) |
% of car’s list price taxed |
Fuel benefit (£14,400 x %) |
up to
140 |
15 |
2,160 |
| 145 |
16 |
2,304 |
| 150 |
17 |
2,448 |
| 155 |
18 |
2,592 |
| 160 |
19 |
2,736 |
| 165 |
20 |
2,880 |
| 170 |
21 |
3,024 |
| 175 |
22 |
3,168 |
| 180 |
23 |
3,312 |
| 185 |
24 |
3,456 |
| 190 |
25 |
3,600 |
| 195 |
26 |
3,744 |
| 200 |
27 |
3,888 |
| 205 |
28 |
4,032 |
| 210 |
29 |
4,176 |
| 215 |
30 |
4,320 |
| 220 |
31 |
4,464 |
| 225 |
32 |
4,608 |
| 230 |
33 |
4,752 |
| 235 |
34 |
4,896 |
240
and above |
35 |
5,040 |
Company cars
- For diesel cars add a 3% supplement but maximum still 35%. This was waived for Euro IV diesels. From 2006/07, no waiver for diesels registered on/after 1 January 2006.
- Discounts apply to certain environmentally friendly cars.
- For cars registered before 1 January 1998 the charge is based on engine size.
- The list price includes accessories and is subject to an upper limit of £80,000.
- The list price is reduced for capital contributions made by the employee up to £5,000.
Fuel benefit
- The fuel benefit 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 per vehicle |
| 2007/08 |
2006/07 |
Van benefit
£3,000 |
Under 4 years old
£500* |
Fuel benefit
£500 |
Over 4 years old
£350* |
Notes
The charges will not apply if a ‘restricted private use condition’ is met throughout the tax year.
* Van benefits include fuel for private use. |
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Mileage Allowance Payments
| Cars and vans |
2007/08 and 2006/07 Rate per mile
|
| Up to 10,000 miles |
40p |
| Over 10,000 miles |
25p
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| Bicycles |
20p
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| Motorcycles |
24p |
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. |
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Individual Savings Accounts (ISAs)
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2007/08 and 2006/07
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£ |
| Overall investment limit |
- maxi ISA |
|
7,000 |
|
- mini ISA |
- stocks, shares and life insurance |
4,000 |
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- cash |
3,000 |
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Corporation Tax
|
Year to 31.3.08 |
Year to 31.3.07 |
|
Profits band
£ |
Rate
% |
Profits band
£ |
Rate
% |
| Small companies rate |
0 - 300,000 |
20 |
0 - 300,000 |
19 |
| Marginal (small companies) rate |
300,001 - 1,500,000 |
32.50 |
300,001 - 1,500,000 |
32.75 |
| Full rate |
Over 1,500,000 |
30 |
Over 1,500,000 |
30 |
| Small companies fraction |
|
1/40 |
|
11/400 |
The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies. |
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Capital Allowances
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Writing Down Allowance |
| Plant and Machinery* |
25%# (reducing balance) |
| Motor Cars** |
25% (reducing balance) - £3,000 max |
| Industrial and Agricultural Buildings and Hotels |
4% (straight line) |
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* For small businesses: first year allowances (FYAs) of 50% for 24 months from 6.4.06
(1.4.06 for companies). 40% otherwise. For medium-sized businesses: FYAs of 40%.For all businesses: 100% FYAs on expenditure on energy saving plant and machinery.
** 100% FYAs on new cars with CO2 emissions not exceeding 120 gm/km until 31.3.08.
# 6% on certain long life assets. |
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Value Added Tax
| Standard rate |
17.5% |
| Reduced rate |
5% |
Annual Registration Limit - from 1.4.07
(1.4.06 - 31.3.07 £61,000) |
£64,000 |
Annual Deregistration Limit - from 1.4.07
(1.4.06 - 31.3.07 £59,000) |
£62,000 |
Flat Rate Scheme - allows businesses to calculate their VAT payment as a percentage of their VAT inclusive turnover.
Limits - annual VAT exclusive taxable turnover does not exceed £150,000 and total VAT exclusive annual turnover does not exceed £187,500. Leave on anniversary of scheme where total VAT inclusive annual turnover exceeds £225,000.
Cash Accounting - allows businesses to account for input and output VAT on a paid and received basis.
Limits from 1 April 2007 - where annual VAT exclusive taxable turnover does not exceed £1,350,000. Leave at end of a VAT period where annual VAT exclusive taxable turnover exceeds £1,600,000.
Annual Accounting - allows businesses to smooth out cash flow by paying a set amount, either monthly or quarterly. Only one VAT return due a year.
Limits - where annual VAT exclusive taxable turnover does not exceed £1,350,000. Leave on anniversary of scheme where annual VAT exclusive taxable turnover exceeds £1,600,000. |
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Capital Gains Tax
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2007/08
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2006/07
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| Individuals |
- exemption |
£9,200
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£8,800
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| Balance of gains (reduced by taper relief) charged as top slice of income (at savings rates - ie 10%, 20% or 40%) |
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| Trusts |
- exemption |
£4,600
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£4,400
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- balance of gains (reduced by taper relief) |
40%
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40%
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Taper relief 2007/08 and 2006/07 disposals
Percentage relief depends on number of complete years asset owned after 5.4.98.
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| Years of ownership |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| Business assets (% relief) |
50 |
75 |
75 |
75 |
75 |
75 |
75 |
75 |
75 |
75 |
| Non-business assets * (% relief) |
0 |
0 |
5 |
10 |
15 |
20 |
25 |
30 |
35 |
40 |
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| * Add one extra year if asset owned before 17.3.98 (subject to overriding max. of 40%). |
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Inheritance Tax
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Chargeable transfers
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Death rate
%
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Lifetime rate
%
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2007/08
£’000
|
2006/07
£’000
|
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Nil
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Nil
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0 - 300
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0 - 285
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40
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20
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Over 300
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Over 285
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| Reliefs |
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Marriage |
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| Annual exemption |
£3,000 |
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- parent |
£5,000 |
| Small gifts |
£250 |
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- grandparent |
£2,500 |
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- bride/groom |
£2,500 |
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- other |
£1,000 |
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| Reduced charge on gifts within seven years of death |
| Years before death |
0-3
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3-4
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4-5
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5-6
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6-7
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| % of death charge |
100
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80
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60
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40
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20
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Stamp Duty & Stamp Duty Land Tax
Land and buildings (on full consideration paid)
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Rate |
Residential property |
Non-residential |
Disadvantaged areas |
Other |
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£ |
£ |
£ |
Nil
1%
3%
4% |
0 - 150,000
150,001 - 250,000
250,001 - 500,000
Over 500,000 |
0 - 125,000
125,001 - 250,000
250,001 - 500,000
Over 500,000 |
0 - 150,000
150,001 - 250,000
250,001 - 500,000
Over 500,000 |
Shares and securities - rate 0.5%
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National Insurance
Class 1 (employed)
contracted in |
2007/08 Rates |
| Weekly earnings |
Employer
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Employee
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| Up to £100 |
Nil*
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Nil*
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£100.01 - £670 |
12.8%**
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11%**
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| Over £670 |
12.8%**
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£62.70 +1%***
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* Entitlement to contribution-based benefits retained for earnings between £87.01 and £100 per week.
** On earnings above £100.
*** On earnings above £670. |
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| Class 1A (employers) |
12.8% on employee taxable benefits |
| Class 1B (employers) |
12.8% on PAYE Settlement Agreements |
| Class 2 (self-employed) |
flat rate per week £2.20
small earnings exception p.a. £4,635 |
| Class 3 (voluntary) |
flat rate per week £7.80 |
| Class 4 (self-employed) |
8% on profits between £5,225 and £34,840 plus 1% on profits over £34,840 |
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Main Social Security Benefits
| Weekly benefit |
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2007/08
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2006/07
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| Basic retirement pension |
- single person |
£87.30
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£84.25
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- married couple |
£139.60
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£134.75
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| Statutory pay rates - average weekly earnings £87 (£84) or over |
| Statutory Sick Pay |
£72.55
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£70.05
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| Statutory Maternity Pay |
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| - first six weeks |
90% of weekly earnings
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| - next 33 weeks ** |
£112.75 *
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£108.85 *
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| Statutory Paternity Pay - two weeks |
£112.75 * |
£108.85 * |
| Statutory Adoption Pay - 39 weeks ** |
£112.75 * |
£108.85 * |
* Or 90% of weekly earnings if lower.
** For children due/placed from 1 April 2007. |
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Self Assessment: Key Dates 2007/08
31 July 2007 - Second payment on account for 2006/07.
30 September 2007 - Deadline for submission of 2006/07 paper tax returns for HMRC calculation; and where the taxpayer wants a balancing payment (below £2,000) collected through their 2008/09 PAYE code.
5 October 2007 - Deadline for notifying HMRC of new sources of income if no tax return has been issued for 2006/07.
30 December 2007 - Deadline for submission of 2006/07 tax returns over the internet; and where the taxpayer wants a balancing payment (below £2,000) collected through their 2008/09 PAYE code.
31 January 2008 - Deadline for filing tax returns for 2006/07.
Balancing payment due for 2006/07. First payment due for 2007/08. |
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Disclaimer
The information in this tax card is based upon the 2007 Budget and other earlier announcements and may be subject to amendment by the Finance Act.
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