Rates and Allowances 2014-15
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- Rates and Allowances 2014-15
Income Tax Rates
| 2014/15 | 2013/14 | ||
| Band £ | Rate % | Band £ | Rate % |
| 0 – 2,880 | 10* | 0 – 2,790 | 10* |
| 0 – 31,865 | 20** | 0 – 32,010 | 20** |
| 31,866 – 150,000 | 40*** | 32,011 – 150,000 | 40*** |
| Over 150,000 | 45**** | Over 150,000 | 45**** |
* Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,880 (£2,790)…
** Except dividends (10%).
*** Except dividends (32.5%).
**** Except dividends (37.5%).
Other income taxed first, then savings income and finally dividends.
Individual Savings Accounts (ISAS)
| 2014/15 | 2013/14 | |||
| £ | £ | |||
| Overall annual investment limit | 11,880 | 15,000 | ||
| Comprising | – cash up to | 5,940 max. | 15,000 max. | |
| – balance in stocks and shares | 11,880 max. | 15,000 max. | ||
Car, Van and Fuel Benefits
| 2014/15 | ||
| CO2 emissions(gm/km)(round down to nearest 5gm/kg) | % of car’s list price taxed | Company Cars· For diesel cars add a 3% supplement but maximum still 35%. · A 0% rate applies to cars which cannot emit CO2 when driven. |
| up to 94 | 11 | · A 5% rate applies to non-electric cars with emissions which do not exceed 75gm/km. |
| 95 | 12 | |
| 100 | 13 | |
| 105 | 14 | |
| 110 | 15 | |
| 115 | 16 | |
| 120 | 17 | |
| 125 | 18 | · A 10% rate applies to non-electric cars with emissions which do not exceed 120gm/km. |
| 130 | 19 | |
| 135 | 20 | |
| 140 | 21 | |
| 145 | 22 | · For cars registered before 1 January 1998 the charge is based on engine size. |
| 150 | 23 | |
| 155 | 24 | · The list price includes accessories and is not subject to an upper limit. |
| 160 | 25 | |
| 165 | 26 | · The list price is reduced for capital contributions made by the employee up to £5,000. |
| 170 | 27 | |
| 175 | 28 | Car fuel benefit 2014/15 |
| 180 | 29 | £21,700 x ?appropriate percentage?* |
| 185 | 30 | *Percentage used to calculate the taxable benefit of the car for |
| 190 | 31 | which the fuel is provided. |
| 195 | 32 | The charge does not apply to certain environmentally |
| 200 | 33 | friendly cars. |
| 205 | 34 | The charge is proportionately reduced if provision of private |
| 210 | 35 | fuel ceases part way through the year. The fuel benefit is |
| 210and above | 35 | reduced to nil only if the employee pays for all private fuel. |
| Van benefit per vehicle 2014/15 | ||
| Van Benefit £3,090 Fuel Benefit £581 | ||
| 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. | ||
Inheritance Tax
| Death rate | Life rate | Chargeable transfers | ||
| 2014/15 and 2013/14 | ||||
| % | % | |||
| Nil | Nil | £0 – 325,000* | ||
| 40 | 20 | Over £325,000* | ||
*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.
| Reliefs | |||||
| Annual exemption | £3,000 | Marriage | – parent | £5,000 | |
| Small gifts | £250 | – grandparent | £2,500 | ||
| – bride/groom | £2,500 | ||||
| – other | £1,000 | ||||
| Reduced charge on gifts within seven years of death | |||||
| Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
| % of death charge | 100 | 80 | 60 | 40 | 20 |
Main Social Security Benefits
| Weekly benefit | 2014/15 | 2013/14 | ||
| Basic retirement pension | – single person | £113.10 | £110.15 | |
| – married couple | £180.90 | £176.15 | ||
| Statutory pay rates | – average weekly earnings £111 (£109) or over | |||
| Statutory Sick Pay | £87.55 | £86.70 | ||
| Statutory Maternity Pay | ||||
| First six weeks | 90% of weekly earnings | |||
| Next 33 weeks | £138.18* | £136.78* | ||
| Statutory Paternity Pay | – two weeks | £138.18* | £136.78* | |
| Statutory Adoption Pay | – 39 weeks | £138.18* | £136.78* | |
| *Or 90% of weekly earnings if lower. | ||||
| Additional Paternity Pay and Leave may be available for a child due or | ||||
| adoptions matched on or after 3 April 2011. | ||||
Self Assessment: Key Dates 2014/15
| 31 July 2014 | – Second payment on account for 2013/14 |
| 5 October 2014 | – Deadline for notifying HMRC of new sources of income if no tax return has been issued for 2013/14 |
| 31 October 2014 | – Deadline for submission of 2013/14 non-electronic returns |
| 31 January 2015 | – Deadline for filing electronic tax returns for 2013/14 – Balancing payment due for 2013/14. First payment on account due for 2014/15 |
Income Tax Reliefs
| 2014/15 | 2013/14 | |||
| £ | £ | |||
| Personal allowance | – under 65 | 10,000 | 9,440 | |
| – 65 – 74* | 10,500 | 10,500 | ||
| – 75 and over* | 10,660 | 10,660 | ||
| (Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) | ||||
| Married couple?s allowance (relief at 10%)* | 7,915 | 7,705 | ||
| (Either partner 75 or over and born before 6 April 1935.) | ||||
| – min. amount | 3,140 | 3,040 | ||
| *Age allowance income limit | 27,100 | 26,100 | ||
| (Reduce age allowance by £1 for every £2 of adjusted net income over £27,100 (£26,100).) | ||||
| Blind person?s allowance | 2,230 | 2,160 | ||
Pension Premiums
2014/15
- Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings.
- Any contributions in excess of £40,000(previously £50,000), whether personal or by the employer, may be subject to income tax on the individual.
- Where the £40,000 limit is not fully used it may be possible to carry the unused amount forward for three years.
- Employers will obtain tax relief on contributions that are paid and made ?wholly and exclusively?. Tax relief for large contributions may be spread over several years.
Mileage Allowance Payments
| 2014/15 | |
| Cars and vans | |
| Up to 10,000 miles | 45p |
| Over 10,000 miles | 25p |
| Bicycles | 20p |
| 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.
Capital Gains Tax
| 2014/15 | 2013/14 | |
| Individuals | ||
| £ | £ | |
| Exemption | 11,000 | 10,900 |
| Standard rate | 18% | 18% |
| Higher rate* | 28% | 28% |
| Trusts | ||
| Exemption | 5,550 | 5,450 |
| Rate | 28% | 28% |
*For higher and additional rate taxpayers.
Entrepreneurs? Relief
The first £10m of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates details above.
Corporation Tax
| Year to 31.3.15 | Year to 31.3.14 | |||
| Profits Band | Rate | Profits Band | Rate | |
| £ | % | £ | % | |
| Small profits rate | 0 – 300,000 | 20* | 0 – 300,000 | 20* |
| Marginal (small | 300,001 – 1,500,000 | 21.25* | 300,001 – 1,500,000 | 23.75* |
| profits rate) | ||||
| Main rate | Over 1,500,000 | 21* | Over 1,500,000 | 23* |
| Standard fraction | 1/400* | 3/400* | ||
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.
Stamp Duty
| Land and buildings (on full consideration paid) | |||
| Rate | Residential property | Non-residential | |
| £ | £ | ||
| Nil | 0 – 125,000 | 0 – 150,000 | |
| 1% | 125,001 – 250,000 | 150,001 – 250,000 | |
| 3% | 250,001 – 500,000 | 250,001 – 500,000 | |
| 4% | 500,001 – 1,000,000 | Over 500,000 | |
| 5% | 1,000,001 – 2,000,000 | – | |
| 7% | Over 2,000,000 | – | |
Shares and securities – rate 0.5%.
National Insurance
| 2014/15 Class 1 (employed) contracted in rates | ||||
| 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 £2.75 | ||
| small earnings exception £5,885 p.a. | |||
| Class 3 (voluntary) | flat rate per week £13.90 | ||
| Class 4 (self-employed) | 9% on profits between £7,956 and £41,865 | ||
| plus 2% on profits over £41,865 | |||
Value Added Tax
| Standard Rate | 20% | |||
| Reduced Rate | 5% | |||
| Annual Registration Limit from 1.4.13 (1.4.12 – 31.3.13 £77,000) | £81,000 | |||
| Annual Deregistration Limit from 1.4.13 (1.4.12 – 31.3.13 £75,000) | £79,000 | |||
Capital Allowances
Plant and machinery – Annual Investment Allowance (AIA)
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 2014 (1 April 2014 for companies). Special rules apply for accounting periods straddling these dates.) Any costs over the AIA fall into the normal capital allowance pools at either 10% or 20%. The AIA may need to be shared between certain businesses under common ownership.
Other plant and machinery allowances
The annual rate of allowance is 18%. A 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.
Cars
For expenditure incurred on cars on or after 6 April 2013 (1 April 2013 for companies), costs are generally allocated to one of the two plant and machinery pools. Cars with CO2 emissions not exceeding 130gm/km(previously 160gm/km) receive a 18% allowance p.a. Cars with CO2 emissions over 130gm/km(160gm/km) receive a 8% allowance p.a.