Alan Secker & Co - Chartered Accountants

Private / Light Goods Vehicles (Goods Vehicles not over 3,000 Kg) (Registered on or after 1 March 2001)

From 13 March 2008
12 month s rate
£

From March 2007
12 Months rate
£

Not over 1,549cc

Over 1,549cc

UK Taxes and Social Security - Menu

          Overview
          Capital Allowances
          Income Tax
          Corporation Tax
          Capital Gains Tax
          Inheritance Tax
          Stamp Duties
          Value Added Tax
          Air Passenger Duty
          Social Security
          Miscellaneous

Bridge Street, Pinner, New Years Eve 31 December 2002

'New Years Eve 31 December 2002' Bradford & Bingley - Pinner Fair 2000

Overview

The UK taxation system is fairly stable. Although intended to be a fair means of raising funds to run the machinery of government, it is periodically modified, usually in line with the dogma of the political party currently in power.

Principle Taxes

The principal taxes are the direct ones such as Income Tax, Corporation Tax and Inheritance Tax and the indirect ones on consumption such as Stamp Duty and Value Added Tax.

Capital Gains Tax once a separate tax is no longer so. Any gain must be computed according to a complex set of rules. The result is added to the taxpayer's income to determine the rate or rates of tax to be applied. This applies to both Income Tax (individuals) and Corporation Tax for companies.

In addition to the taxes, employees and employers have to bear the costs of the Social Security system. Some years ago, the Department of Social Security (the DSS) was split into two agencies, namely the Contributions Agency and the Benefits Agency. From April 1999, the former was merged into the Inland Revenue which now collects contributions on behalf of the DSS.

If the details below do not provide sufficient detail, for:

For both direct taxes, and indirect taxes, visit the website of H M Revenue & Customs at		http://www.hmrc.gov.uk/
National Insurance contributions, visit the website of H M Revenue & Customs at		http://www.dwp.gov.uk/
Pensions and other benefits, visit the Department of Work and Pensions		http://www.dwp.gov.uk/

The Tax Year

The UK tax year runs to 31 March for corporations and to 5 April for all other entities including individuals. Every year individuals requested to do so and those not so requested but having, or likely to have an income tax liability, must make a tax return whether they have received a return form or not. All corporations must make a return.

Income Assessable

Businesses in the UK can run their business accounting year to any date they choose. Usually this will be a convenient date for accounting purposes, such as the last day of a chosen month or when their stocks (inventories) are seasonally low.

Whatever date is chosen, will also, for corporations, be their tax return year end date. Their tax is based upon their profits including capital gains, arising during the company's financial year.

For individuals, partnerships and other non-corporations, the tax position is different. The profits of their business' year ending during the UK tax year are the ones to be included in the tax return for that year.

Income Tax

          Allowances
          Exemptions
          Income Tax Rates
          Eligible Pension Contributions
          Mileage Allowances
          Benefits in Kind
          Return to Main Menu

Bridge Street on the evening of 30 January 2003
from Parkville House

Bridge Street from Parkville House

Income Tax - Allowances

Note for 2010/11 The personal Allowance for those with gross incomes before the personal allowance of £100,000 will have their personal allowance reduced by £1 for every £2 of gross income over £100,000 to the maximum of the personal allowance.

	2010/11	2009/10	2008/09	2007/08	2006/07	2005/06	2004/05
	£	£	£	£	£	£	£
Personal (to 64)	6,475	6,475	6,035	5,225	5,035	4,895	4,745
Aged (65 to 74)	9,490	9,490	9,030	7,550	7,280	7,090	6,830
Aged 75 and o9ver	9,640	9,640	8,180	7,690	7,420	7,220	6,950

Married Couple's Allowance (1)
	6,965	6,965	6,535	6,265	6,065	5,950	5,725
(1)	6,965	6,965	6,625	6,365	6,135	5,975	5,795
As areduction in tax:
Elder's spouse age < 75 (2)	686.50	686.50	653.50	628.50	606.50	590.50	572.50
age 75 and over (2)	696.50	696.50	662.50	636.50	613.50	590.50	579.50

(1) Married Couples Allce abolished from 6/4/2000 except where one spouse was born before 6/4/1935.
(2) One spouse must have been born before 6 April 1935
The Minimum Married Couple's Allowance for those aged 64 or over 2,210* As a reduction in tax	267.00	267.00	254.00	244.00	244.00	235.00	228.00
Widow's Bereavememt	2,000*	2,000*	2,000*	2,000*	2,000*	2,000*
Blind Persons	1,890*	1,890	1,800	1,730	1,660	1,610	1,560

	2010/11	2009/10	2008/09	2007/08	2006/07	2005/06	2004/05
Mortgage Interest Relief on first £30,000 of advance abolished from 6/4/2000 except for persons aged 65 at that date	10%	10%	10%	10%	10%	10%	10%

	£	£	£	£	£	£	£
The Personal Allowances for persons aged 65 or over are restricted where the Income exceeds:	22,900	22,900	21,800	20,900	20,100	19,500	18,900
by	£1	£1	£1	£1	£1	£1	£1
for every	£2	£2	£2	£2	£2	£2	£2
of income until either the normal single or married personal allowance remains. The latter is reduced by 10p of tax for every £2 of excess income. Only the husband's income is taken into account. (Income for these purposes is computed after deducting payments of Gift Aid and pension contribution relief).


> > Income Tax - Exemptions
	2010/11	2009/10	2008/09	2007/08	2006/07	2005/06
	£	£	£	£	£	$
Rent a Room Scheme
Where a room in the tax-payer's house is rented. Annual Exemption	4,250	4,250	4,250	4,250	4,250	4,250

Foster Carers
Two methods of computing taxable profits 1) Gross receipts less threshold limit; or 2) Regular Self-Employed Accounts.

Homeworking
Tax free reimbursement of incidental household costs incurred from working at home, per week	2	2	2	2	2

Individual Savings Accounts
Maximum annual subscription to a cash ISA from 6 April 2008	5,100 *	5,100 *	3,600
plus into stocks and shares but with an overall maximum investment into both of	10,200 *	10,200 *	7,200

* Available to people over 49 for 2009/10 from 6/10/2009 and to all from 2010/11

Income Tax - Rates

Note: See below fpr projected rates for 2010/11 and 2011/12

	2010/11	2009/10	2008/09	2007/08	2006/07	2005/06	2004/05
	£	£	£	£	£	£	£
Taxable income after allowances:

Starting Rate Band10%	-	-	-	2,230	2,150	2,090	2,020
Savings Rate 10%	2,440	2,440	2,320
Basic Rate Band:
Non-Savings Rate20%	37,400	37,400	34,800
Non-Savings Rate22%				32,370	31,150	30,310	28,540
Savings Rate 20%				32,370	31,150	30,310	29,830
UK Dividend Rate10%				32,370	31,150	30,310	29,830
Higher Rate:
Excluding UK dividends 40% on >	37,400 - 150,000	37,400+	34,800+	34,600+	33,300+	32,400+	31,400+
UK Dividend Rate: 32.5%				34,600+	33,300+	32,400+	31,400+
Additional Rate:
50%	Over £150,000
42.5%	Dividends
Trusts and Estates
Basic Rate on first £500 of Income Tsx
Rate excluding UK Dividends	40%	40%	40%	40%	40%
UK Dividend Higher Rate	32.5%	32.5%	32..5%	32.5%	32.5%
UK Dividend Additional Rate	42.5%

	2010/11	2009/10	2008/09	2007/08	2006/07	2005/06	2004/05
Construction Industry Tax Deduction Rate				18%	18%	18%	18%
For subcontractors registered with HM Revenue & Customs	20%	20%	20%

Eligible Pension Contributions

The basis by which permissible deductions from income for tax purposes is determined changed after 5 April 2006
From the start of 2006/07, there are:	2010/11	2009/10	2008/09	2007/08	2006/07
Annual Allowance	255,000	245,000	235.000	225,000	215,000
Lifetime Allowance	1,800,000	1,750,000	1,650.000	1,600,000	1,500,000

Prior to that, the maximum sums deductible from income for income tax purposes changes were limited to the percentages shown below, multiplied by the total of net relevant earnings. Relevant earnings exclude unearned income and capital gains.
Age at start of the tax year:			Personal Pensions		Retirement Annuities %
35 or less			17.5		17.5
36 - 45			20		17.5
46 - 50			25		17.5
51 - 55			50		20
56 - 60			35.5		22.5
61 and over			40		27.5

Earnings Limit (CAP)
2005/06			105,600		No limit
2004/05			102,000		No limit
2003/04			99,000		No limit
2002/03			91,800		No limit

`Note: The PP Cap applies also to occupational and stakeholder pensions.`

Mileage Allowances (Authorised Rates)

Employees using their own Cars for Business are entitled to an allowance based upon their business miles. The rates are as follows::
	2010/11	2009/10	2008/09	2007/08	2006/07	2005/06
First 10,000 miiles, per mile:	40p	40p	40p	40p	40p	40p
Over 10,000 miles, per mile:	25p	25p	25p	25p	25p	25p
All mileages:
Motor Cucles	24p	24p	24p	24p	24p	24p
Bicycles	20p	20p	20p	20p	20p	20p

Tax -Free level for reimbursements of fuel provided by employees when using company cars:
Petrol	From 1/1/09 per mile	From 1/1/08 per mile	From 1/7/06 per mile	2006/07 per mile	2005/06 per mile	2004/05 per mile
1400 cc or less	10p	11p	13p	10p	10p	10p
1401 - 2000 cc	12p	13p	13p	12p	12p	12p
Over 2000 cc	17p	19p	18p	14p	14p	14p
Diesel
Up to 2000 cc	11p	11p	10p	9p	9p	9p
Over 2000 cc	14p	14p	14p	12p	12p	12p
Gas (LPG)
1400 cc or less	7p	7p	7p	6p	6p	6p
1401 - 2000 cc	9p	8p	8p	7p	7p	7p
Over 2000 cc	12p	11p	11p	9p	9p	9p

Benefits in Kind
Overview Car Scale Benefits Van Benefits Car Fuel Benefits Other Benefits Return to Income Tax Menu	*Spring in Albury Drive, Pinner 2000*

Overview - Benefits in Kind
Benefits in kind are benefits received by employees other than in cash. These can include health scheme premiums, the provision of holidays, entertainment etc but the most commonare the benefits derived from company motor cars. Scale Benefit for the private use of a car; and fuel benefit where fuel is provided other thanfor business use.

Car Scale Benefits

New System from 6 April 2002

From 6 April 2002 the system to compute Car Scale Benefits is one based on the Carbon Dioxide emissions of each vehicle. The emissions are measured in grams per kilometre. The exact figure will be rounded down for tax purposes. The following table shows a range of values set for the three years 2002/2003 to 2004/2005 and the corresponding percentage which will be applied to the car's price to produce the taxable benefit. Under an agreement with the Inland Revenue, the Society of Motor Manufacturers and Traders is providing a CO2 emissions enquiry service over the Internet, for cars registered from January 1998 at

http://www.smmt.co.uk/

More recently, the Vehicle Certification Agency established a website detailing, car fuel consumption and emission figures at:

http://www.vcacarfueldata.org.uk/

CO2 Emissions in Grams Per Kilometer					Percentage of Cars Taxed Price
2003/04	2004/05	2005/06	2006/07 to 2009/10	2010/11	*(See asterisks for details of diesel supplements)**
				130	15 *
				135	15*
155	145	140	140		15 *
160	150	145	145		16 *
165	155	150	150		17 *
170	160	155	155		18 *
175	165	160	160		19 *
180	170	165	165		20 *
185	175	170	170		21 *
190	180	175	175		22 *
195	185	180	180		23 *
200	190	185	185		24 *	*Pantomime Night, Pinner 25 November 2004*
205	195	190	190		25 *
210	200	195	195		26 *
215	205	200	200		27 *
220	210	205	205		28 *
235	215	210	210		29 *
230	220	215	215		30 *
235	225	220	220		31 *
240	230	225	225		32 *
245	235	230	230		33 **
250	240	235	235		34 ***
255	245	240	240		35 ****
From 2008/09, a 10% band will apply for cars with CO2 emissions up to and including exactly 120 g/km. This excludes hybrid and bio-fuel cars and electric cars.
* Add 3% if car runs solely on diesel
Add 2% if car runs solely on diesel**
* Add 2% if car runs solely on diesel**
Deduct 2% if car runs on E85 fuel
****Maximum charge - no diesel supplement
Electric Cars Per Kilometre					15%
Cars running only on electricity					9%
Petrol / Battery Hybrids
Cars with no approved CO2 Emissions: Engine Size cc:					Emission rate above less 2%. Less a further 1% for each 20g/km by which CO2 emissions are below 159.
0 - 1,400					15%
1,401 - 2,000					25%
2,001 plus					35%
Cars with no Cylinder Capacity:
Powered by electricity					15%
Other					35%
Cars registered before January 1998 Engine Size cc:
0 - 1,400					15%
1,401 - 2,000					22%
2,001 plus					32%
Disabled Drivers Disabled drivers obliged to use automatic transmission will be taxed at the rate applicable to the nearest manual equivalent
Employee Contributions Contributions by employees for the private use of a car, reduce the value of the benefit pound for pound.
Employee Contributions Contributions by employees towards the cost of the car and/or accessories, up to £5,000, reduce its effective price pound for pound, for tax purposes.
Classic Cars If a car is 15 years or more of age at the end of the tax year, and has a market value of £15.000 or more (and higher than its list price when the car was first registered, the price of the car for tax purposes is considered to be its open market value on the last day of the tax year.
Car provided for only part of a year The value of the benefit is proportionately reduced if the car is not available for a continuous period of at least 30 days.

Van Benefits

Van Benefit (per vehicle)
	2010/09	2008/09	2007/08	2006/07	2005/06	2004/05
	3,000	3,000	3,000
Vehicles under 4 years old				500	500	500
Vehicles 4 years and over				350	350	350
From 5/4/05 no charge will apply to employees who have to take their vans home and there is insignificant private use.

If in addition the employer pays for 'private fuel', there is a fuel charge of :	*	*	500	500	500	500
* From 2008/09 Van fuel benefit was said in the 2008 Treasury Budget document that it was to be calculated as for motor cars.

Car Fuel Benefits

From 5 April 2003 (2003/04 onward):
Car Fuel Benefit is calculated by reference to a constant defined by the government) and the percentage appropriate for a given vehicle, from the Car Scale Table above. The Constant from 6 April 2008 is £16,900.

From 5 April 2003 it has been £14,400.

Example
A petrol powered Rover 45 1997cc has a CO2 emission value of 224. This equates to 29% for 2003-04. For 2003/04, the Car Fuel benefit for such a car will be £14,400 X 29 /100=4,176.

Other Benefits

	To 5 April 2003	From 6 April 2003
	£	£
Tax Free long service awards (for each year of service)	20	50
Annual maximum tax free for 'staff parties' per head	75	150
Tax free limits of the value of non-cash gifts from third parties	150	250

As an incentive to encourage participation to cycle to work days, employers may provide meals or refreshments	(Max 6 meals per year)	Unlimited

Corporation Tax
Years commencing 1 April	2014	2013	2012	2011	2010	2009	2008
Effective rates are:	%	%	%	%	%	%	%
On first £ 300,000	20	20	20	20	21	21 (3)	21
On next £1,500,000	24	25	26	27	28	28	30
Marginal Relief fraction
on £ 10,000 - 50,000							19/400
on £300,000 - 1,500,000	3/200	7/400			7/400	3/200	11/400

Note: 1	The rate thresholds are divided by the number of associated companies (where there are any)
2	Neither the 0%, 19%, 20 %, 21% and 22% apply to close Investment Holding Companies.
3	profits from which dividends were paid to non-corporate shareholders, bore 19% Corporation Tax.
4	The small comanies corporation tax rate increaese to 22% is deferred until 1/4/2010

Capital Gains Tax
Tax Rates
From 2008/09 there was a major reform of UK Capital Gains Tax. For the first time for many years, the tax on gains is not to be levied at the top tax rate based upon an individual's overall income for a year. Instead a flat rate of 18% is introduced. Unfortunately it appears that this was poorly thought through by the government as there were changes following the initial announcement. The basic premise is that from 6 April 2008, taper relief is swept away for both business and non-business assets as is the benefit of any indexation relief that had accrued up to 5 April 1998. In their place is the new flat rate.

	2010/11	2009/10	2008/09
Standard Rate	18%	18%	18%
Higher Rate - for gains over the lowrr rate threshold	28%	-	-
Entrepreneurs' relief - effective rate	10%	10%	10%
Entrepreneurs' relief - lifetime limit	£5,000,00	£1,000,00	£1,000,00
Annual Exemption - Individual	£10,100	£10,100	£9,600
Annual Exemption - Individual	5,050	5,050	4,800

Proceeds of Chattels Exemption	6,000	6,000	6,000

Entrepreneurs Relief
From 6 April 2008 gains arising from the disposal of all or part of a business or from the disposal of assets following the cessation of a business by certain individuals involved in the running of the business will be eligible for this relief.

Conditions
The relief will also be applicable to the disposal of shares and securities in a trading company or the holding company of a trading group, provided the individual making the disposal has been an officer or employee of the company or of a company in the same group of companies and owns at least 5% of the ordinary share capital of the company and the holding enables the individual to exercise at least 5% of the voting rights in that company. Property lettings businesses other than furnished holiday lettings will not qualify.

Relief
During the taxpayer's lifetime, a maximum of £1,000,000 of gains (£2,000,000 from 2010/11) that qualify for this relief will be charged to Capital Gains Tax at an effective rate of 10%. Any qualifying gains exceeding £1,000,000 / £2,000,000 will be charged at 18%

Before 6 April 2008
Until 5 April 2008, the resultant gain is added to the other income and taxed at the top rate of income or corporation tax as is appropriate. However if, from 1999/2000, an individuals gains, when added to total income, do not bring it into the 40% rate band, they are taxed at 20%. From 2000/2001 gains are taxed at the rates of 10%, 20% or 40% for gains (when added to other income) falling within the three income tax bands of income and gains.

Taper Relief


(This relief was terminated after 5 April 2008).

Tapering Relief replaced Indexation Relief from 5 April 1998. The longer an asset is held(with a maximum of 10 years for non-business assets), the more any gain is tapered. However for business assets, the maximum relief is 75% of the gain:

Table 1 - after 2 complete years for disposals after 5 April 2002.
Table 3 - after 10 complete years for disposals after 5 April 1998 but before 6 April 2000.
For non-business assets, the maximum relief is 40% of the gain.

From 6 April 2004, the definition of business assets for taper relief purposes has been relaxed. An asset that is owned by an individual or trustees and used wholly or partly for the purposes of a trade carried on by any individual, partnership or trustee will qualify as a business asset.
TABLE 1	Number of complete years after 5/4/2002 for which the asset is held	Precentage of gain chargeable on business assets	Equivalent Higher Rate CGT payer %
	0 - 1	100	40
	1 - 2	50	20
	Over 2	25	10

TABLE 2	Number of complete years after 5/4/2000 but before 6/4/2002 for which the asset is held	Percentage of gain chargeable on Business Assets	Equivalent Higher Rate CGT Payer
		%	%
	0 - 1	100	40
	1 - 2	87.5	35
	2 - 3	75	30
	3 - 4	50	20
	Over 4	25	10

TABLE 3
Number of complete years after 5/4/90but before 6/4/2000 for which the asset is held:	Percentage of gain chargeable on Business aAsets	Percentage of gain chargeable on Non-Business Assets	Equivalent higher rate / Basic Rate tax
	Percentage of gain chargeable on Business aAsets	Percentage of gain chargeable on Non-Business Assets	Business	Non-Business
0	100.0	100	40 / 23.00	40 / 23.00
1	92.5	100	37 / 21.27	40 / 23.00
2	85.0	100	34 / 19.55	40 / 23.00
3	77.5	95	31 / 17.82	38 / 21.85
4	70.0	90	28 / 16.10	36 / 20.70
5	62.5	85	25 / 14.37	34 / 19.55
6	55.0	80	22 / 12.65	32 / 18.40
7	47.5	75	19 / 10.92	30 / 17.25
8	40.0	70	16 / 9.20	28 / 16.10
9	32.5	65	13 / 7.47	6 / 14.95
10 or more	25.0	60	10 ./ 5.75	24 / 13.80

Notes:	Tapering is applied to the chargeable amount, not the gain. This means that available reliefs, such as any available retirement relief, are deducted first. Then losses. But NOT the annual exemption.
	Pooling for shares ceases for acquisitions after 5 April 1998 for Income Tax but not Corporation Tax
	Assets held at 17 March 1998 are deemed to have been held an additional year
	Tapering only applies to whole years, counted from the date of acquisition
	There has to be a minimum 30 day gap between selling and re-purchasing shares of the same company in a 'bed and breakfast' operation.

Inheritance Tax

	2010/11	2010/09	2008/09	2007/08	2006/07	2005/06	2004/05
	£	£	£	£	£	£	£
Tax on first at 0% (see note below)	350,000	325,000	312,000	300,000	285,000	275,000	263,000
Remainder at 40%
Chargeable Lifetime Transfers 20% above	350,000	325,000	312,000	300,000	285,000	275,000	263,000
Annual Exemption	3,000	3,000	3,000	3,000	3,000	3,000	3,000
Small Gifts Exemption - Donee	250	250	250	250	250	250	250

Simplified reporting rules threshold				240,000	240,000	240,000	240,000

The estate must not include no gifts with reservation and assets valued at not more than £50,000 outside the UK. (IR leaflet IHT12 explains conditions)

Lifetime transfers are potentially exempt. If the donor dies within 7 years the value of the transfer is reduced progressively:
Years before death			0 - 3	3 - 4	4 - 5	5 - 6	6 - 7
Percentage chargeable			100%	80%	60%	40%	20%

Note: Any second death on or after 9 Oct 2007 will attract any NIL rate band remaining after the first death of a spouse or civil partner. It is the percentage of the band that is transferred, effectively making this relief inflation-proofed

Stamp Duties

`The more commonly encountered duties:`
Agreements under Seal (excl. Service Agreements)				£5
Bearer Instruments on Issue or First transfers made after 26 Oct 1986				1.5%
Clearance Services 26/10/86				1.5%
if made by a qualified dealer in securities				1.0%
Companies Own Shares (on contracts made after 26/10/86)				0.5%
Conveyances to Charities or the National Heritage				NIL
Conveyances other than Shares Transfers (from 1 December 2003) :
(Consideration Paid)
Zero-Carbon Homes exemption from Stamp Duty from 1/10/07 until 30/09/2002 for homes costing less than £500,000.
Rate %	Residential Outside Disadvantaged Areas £	Non-Residential £	Residential in disadvantaged areas £	Non -Res £
0	0 - 125,000 (1)	0 - 150,000	0 - 150,000	All at 0%
1	125,000 - 250,000 (1)	150,000 - 250,000	150,000 - 250,000
3	250,000 - 500,000	250,000 - 500,000	250000 - 500,000
4	Over 500,000	Over 500,000	Over 500,000
Note. Commercial propery will under certain circumstances attract VAT. If so SDLT will be on the combined price.

New Leases (Lease Duty)
		Net Present Value of Rent (£)
Rate%		Residential	Non-Residential
0		0 - 125,000	0 - 150,000
1		Over 125,000	Over 150,000

(1) Prior to 23 March 2006, the starting threshold was £60,000.

Conveyances other than Shares Transfers (from 28 March 2000)
where the consideration does not exceed		£60,000 (£150,000 from 1/12/03 for commercial property)		NIL
		> £60,001 to £250,000		1.0%
		> £250,001 to £500,000		3.0%
		> £500,000		4.0%
	Enterprise areas - from 10 April 2003, transactions in non-residential property in enterprise areas valued at less than £15,000			NIL

	Conveyances under the statutory ~rent to mortgage~ scheme in England and Wales, where the final consideration includes a percentage of the market value of the property on redemption, bears duty on the consideration, i.e. market value less discount, which would be due under the statutory right to-buy-scheme. and similarly under the Scottish ~rent to loan~ scheme			1.0%
	Conveyance or charge not covered elsewhere			1.0%
	Covenants			£5

Conveyance or charge not covered elsewhere				1.0%
Depository Receipts (Transfers of :
	shares converted to) - after 26/10/86			1.5%
	if made by qualified dealer in securities			1.0%
Goodwill -	on documents executed on or after 23 April 2002			NIL
Hire Purchase Agreements				£5
Intellectual Property (from 28 Mar 2000)				NIL
Houses (see above - Conveyances other than share transfers) Leases - Non-Residential Property
New basis for computing stamp duty on commercial leases starts from 1 Dec 2003. Duty will be calculated at 1% of the Net Present Value (NPV) of the rent payable over the term of the lease, with an annual NPV discount rate of 3.5%. The NPV of a 10 yr lease at £10,000 per annum would be £83,166 and the stamp duty therefore £831.60

Share Transfers				1% rounded up to the next £5
Short Term Loan Capital (subject to changes at 6/7/86) from 25/3/86				0.5%
Stock exchange Nominees taxed
	Transfers of Stocks, Shares & Marketable Securities (from 26 Oct 1986)			0.5%
	U.K. Shares converted to depository receipts			1.5%

Value Added Tax

          About VAT Rates
          Rate Changes
          Thresholds
          VAT Scale Charges
          Return to Main Menu

Marsworth Avenue from Woodhall Gate, Pinner

Marsworth Avenue from Woodhall Gate

About VAT Rates

From an accounting perspective, for VAT purposes, business transactions fall into five categories: Standard Rated, Zero Rated, Exempt, a special Rate on the supply of Domestic Electricity and Items Outside the Scope of the Tax (IOTST)

Zero rated items are taxed... at zero rate. A business selling goods or services at zero-rate can still count its turnover as taxable and claim back any VAT it has paid upon its purchases but an exempt business cannot. IOTST items do not count at all for VAT purposes and are not to be included in statistical information

Rate Changes

From	From 4/1/2011	From 1/1/2010	1/12/2008 until 31/12/2009 then return to prervious rates	25/4/2002	1/4/2001
	%	%	%	%	%
Standard Rate (since 1/4/1991)	20	17.5	15	17.5	17.5
Lower Rate attributable to
specific products/services:
Fuel and Power for domestic use:	5	5	5	5	5
Installation of energy saving materials:	5	5	5	5	5
Installation on home security goods	5	5	5	5	5
Women's sanitary products, exempt from 1/1/2001

VAT Thresholds

From	1/4/10	1/12/08	1/4/08	1/4/07	1/4/06	25/4/05
	£	£	£	£	£	£
Registration Threshold (Turnover)	70,000	68,000	67,000	64,000	61,000	60,000
Deregistration Threshold (Turnover)	68,000	66,000	65,000	62,000	59,000	58,000
Flat Rate Scheme (Turnover) (from 25/4/02)	150,000	150,000	150,000	150,000	150,000	150,000
Total Annual Turnover Threshold		187,500	187,500	187,500	187,500	187,500
Cash Accounting - (Up to)	1,350,000	600,000	600,000	600,000	600,000	600,000
Annual Accounting
Entry threshold	1,350,000	300,000	300,000	600,000	600,000	600,000
Exit threshold (entry from 12/4/03)	1,600,000	1,600,000	1,600,000	1,600,000	825,000

Correction of Errors

From 1 July 2008:
1.	The de minimis for making corrections informally on a VAT Return is increased to £10,000 from £2,000
2	Errors of £10,000 to 50,000 require separate disclosure if the net error exceeds 1% of tunover (box 6 of the Return.
3	Above £50,000 all errors must be disclosed separately.

	These changes also apply to Insurance Premium Tax, Air Passenger Duty, Landfill Tax, Climate Change Levy and Aggregates Levy.

Fuel Scale Charges

Where fuel is supplied to proprietors and / or their staff for use in cars and the vehicle is used for private purposes, a supply is deemed to have been made for  
VAT purposes. The VAT arising from the deemed supply to added in the VAT Return is determined from a scale charge. From 1 Dec 2008, this is directly
related to the vehicles' CO2 emissions. In the table below, where the vehicle's CO2 emissions are not a multiple of 5, round the figure down  to the nearest
tmultiple of 5.

	Annual Return		Quarterly Return		Monthly Return
CO₂ band	Charge (Gross) £	VAT Included £	Charge (Gross) £	VAT Included £	Charge (Gross) £	VAT Included £
120 or below	555.00	72.39	138.00	18.00	46.00	6.00
125	830.00	108.26	207.00	27.00	69.00	9.00
130	830,00	108.26	207.00	27.00	69.00	9.00
135	830.00	108.26	207.00	27.00	69.00	9.00
140	885.00	115.43	221.00	28.83	73.00	9.52
145	940.00	122.61	234.00	30.52	78.00	10.17
150	995.00	129.78	248.00	32.35	82.00	10.70
155	1,050.00	136.96	262.00	34.17	87.00	11.35
160	1,105.00	144.13	276.00	36.00	92.00	12.00
165	1,160.00	151.30	290.00	37.83	96.00	12.52
170	1,215.00	158.48	303.00	39.52	101.00	13.17
175	1,270.00	165.65	317.00	41.35	105.00	13.70
180	1,325.00	172.83	331.00	43.17	110.00	14.35
185	1,380.00	180.00	345.00	45.00	115.00	15.00
190	1,435.00	187.17	359.00	46.83	119.00	15.52
195	1,490.00	194.35	373.00	48.65	124.00	16.17
200	1,545.00	201.52	386.00	50.35	128.00	16.70
205	1,605.00	209.35	400.00	52.17	133.00	17.35
210	1,660.00	216.52	414.00	54.00	138.00	18.00
215	1,715.00	223.70	428.00	55.83	142.00	18.52
220	1,770.00	230.87	442.00	57.65	147.00	19.17
225	1,825.00	238.04	442.00	59.35	151.00	19.70
230	1,880.00	245.22	469.00	61.17	156.00	20.35
235 or more	1,935.00	252.39	483.00	63.00	161.00	21.00

Scale Charges for periods prior to 1 May 2007:
	2006/07*	2005/06	2004/05	2003/04	2002/03	2001/02
Qtly Scale Charges - Petrol	£	£	£	£	£	£
up to 1,400 cc	40.66	35.29	34.55	35.29	33.65	36.04
1,401 - 2,000 cc	51.53	44.68	43.63	44.68	42.59	45.72
Over 2,000 cc	75.66	65.82	54.34	65.82	62.85	67.46
Qtly Scale Charges - Diesel	£	£	£	£	£	£
up to 1,400 cc	38.72	33.51	32.17	33.51	31.57	33.51
1,401 - 2,000 cc	38.72	33.51	32.17	33.51	31..39	33.51
Over 2,000 cc	49.30	42.14	40.65	42.14	39.91	42.59
* From start of first accounting period beginning after 30 April 2006

Air Passenger Duty

The original proposed Air Passenger Duty due to come in from 1 November 2009, has been replaced rates applied to a sysem of bands based upon the distance from London. The new rates apply irrespective of when the ticket was purchaed.

	Standard class of travel (reduced rate)		Other than standard class of travel (standard rate)
Band	2009-10 £	2010-11 £	2009-10 £	2010-11 £
A	11	12	22	24
B	45	60	90	120
C	50	75	100	150
D	55	85	110	170

Before 1 November 2009	From Feb 2008	From 1 April 2001
	£	£
Duty on economy flights within the European Economic Area (EEA	10	5
Duty on flights in the Scottish Highlands and Islands	NIL	NIL
Return flights within the UK no longer exempt.
Business and first class flights to Europe	20	10
Economy class long haul flights	40	20
Business class long haul flights	80	40

Social Security - Menu
Contributions Benefits	*Bridge Street Pinner, late evening 30 Jan 2003*

Social Security - Class I Contributions - Employees Not Contracted Out

From 2011/12, National Insurane rates will increase by 0.5%. This will be on both employer and employee contributions and will apply to Class 1A and Class 1B. At the same time, the primary threshold for NI contributions will be aligned with the single personal allowance for Income Tax.

	2009/10		2008/09		2007/08		2006/07		2005/06
Pay Rate	Weekly £	Employee Regular	Weekly £	Employee Regular	Weekly £	Employee Regular	Weekly £	Employee Regular	Weekly £	Employee Regular
Below	95.00	Nil	90.00	Nil	87.00	Nil	84.00	Nil	82.00	Nil
Up to	110.00	Nil	105.00	Nil	100.00	Nil	97.00	Nil	94.00	Nil
Over	110.00	11%	105.00	11%	100.00	11%	97.00	11%	94.00	11%
Over	844.00	1%	770.00	1%	670.00	1%	645.00	1%	630.00	1%


	2009/10		2008/09		2007/08		2006/07		2005/06
Pay Rate	Weekly £	Employee Reduced	Weekly £	Employee Reduced	Weekly £	Employee Reduced	Weekly £	Employee Reduced	Weekly £	Employee Reduced
Below	95.00	Nil	90.00	Nil	87.00	Nil	84.00	Nil	82.00	Nil
Up to	110.00	Nil	105.00	Nil	100.00	Nil	97.00	Nil	94.00	Nil
Over	110.00	4.85%	105.00	4.85%	100.00	4.85%	97.00	4.85%	94.00	4.85%
Over	844.00	1%	770.00	1%	670.00	1%	645.00	1%	630.00	1%


	2009/10		2008/09		2007/08		2006/07		2005/06
Pay Rate	Weekly £	Employer Rates	Weekly £	Employer Rates	Weekly £	Employer Rates	Weekly £	Employer Rates	Weekly £	Employer Rates
Below	95.00	Nil	90.00	Nil	87.00	Nil	84.00	Nil	82.00	Nil
Up to	110.00	Nil	105.00	Nil	100.00	Nil	97.00	Nil	94.00	Nil
Over	110.00	12.8%	105.00	12.8%	100.00	12.8%	97.00	12.8%	94.00	12.8%
Over	844.00	12.8%	770.00	12.8%	670.00	12.8%	645.00	12.8%	630.00	12.8%

Class II Self-Employed N.I. Weekly Contributions

	2009/10	2008/09	2007/08	2006/07	2005/06
	£	£	£	£	£
Contributions	2.40	2.30	2.20	2.10	2.10
	£	£	£	£	£
Small Earnings Exemption	5,075	4,825	4,635	4,465	4,345
Self-Employed expecting to earn below the exemption level may apply for an exemption certificate

Class III Voluntary N.I. Weekly Contributions

2009/10	2009/10	2009/10	2009/10	2009/10	2009/10	2009/10
£	£	£	£	£	£	£
12.95	8.10	7.80	7.55	7.35	7.15	6.95

Class IV Self-Employed N.I. Contributions on Profits

	2009/10	2008/09	2007/08	2006/07	2005/06	2004/05	2003/04
	£	£	£	£	£	£	£
Tranche from	5,715	5,475	5,225	5.035	4,895	4,745	4,615
to (upper Profits limit)	43,875	40,040	34,840	33,540	32,760	31,720	30,940
at the rate of	8%	8%	8%	8%	8%	8%	7%
plus above	43,875	40,040	34,840	33,540	32,760	31,720	30,940
	1%	1%	1%	1%	1%	1%

Social Security - Class IA Contributions - Fuel Scale Rates

Both Income Tax and Class IA National Insurance are chargeable upon the deemed value of fuel (petrol or diesel) provided by an employer to an employee having the use of a vehicle provided by their employers'. The deemed value is obtained from a table, scaled by reference to engine size except for those without a cylinder capacity

Scale Charges

2008/09	2007/08	2006/07	2005/06	2004/05	2003/04

Take the fuel emmission pwercentage for the year end and multiply it by £16,900	Take the fuel emmission pwercentage for the year end and multiply it by £14,400	Take the fuel emmission pwercentage for the year end and multiply it by £14,400	Take the fuel emmission pwercentage for the year end and multiply it by £14,400	Take the fuel emmission pwercentage for the year end and multiply it by £14,400	Take the fuel emmission pwercentage for the year end and multiply it by £14,400

Social Security - Class I Authorised Mileage Rates

Where employees are obliged by their contracts of employment to use their vehicles foe business, the costs are allowable against the profits of the business. Howeverif the reimbursements to the employee exceed certain levels the surplus is subjectto both income tax and national insurance.

The method used is to allow a rate per mile for up to 10,000 miles and a differentrate for more than 10,000 miles of business travel. The rates differed for differingengine sizes. This system was originally termed the 'Fixed Car Profit Scheme' butmore recently and coherently, Authorised Mileage Rates.

For the rates see Income Tax - Mileage Allowances (Authorised Rates)

Social Security Benefits - (Partial Selection)

	2009/10	2008/09	2007/08	2006/07	2005/06
	£	£	£	£	£
Retirement Pension: Standard State Pension		90.70	87.30	82.25	82.05
State Pension based on Husband's Contributions		54.35	52.30	50.50	49.15
For a spouse or other adult dependant		54.35	52.30	50.50	49.15
Child Benefit (1st)		18.80	18.10	17.45	17.00
(subsequent children)		12.55	12.10	11.70	11.40
Bereavement Benefit		90.70	87.30	84.25	82.05
Widows Benefit		90.70	87.50	84.25	82.05
Attendance Allowance
Higher Rate				64.50	60.60
Lower Rate				43.50	40.55

Penmsion Credit Guarantees those over 60 an income of at least:
for a singleton		124.05	119.05	114.05	109.45
those with a partner		189.35	181.70	174.05	167.05

The full range of benefits is both wide and the variations, complex. For full details click on the URL below to directly access a full list on the Benefits Agency section of the Department of Social Security. http://www.dss.gov.uk/

Capital Allowances

Under the UK direct taxation system, depreciation on business assets cannot be written off against profits at the whim of the business' owner. Instead any such deductions must be added back and deductions calculated according to rules laid down by law may be substituted. These deductions are referred to as Capital Allowances.
	%
The Principal Capital Allowances are:
Agricultural Buildings	4	on cost (subject to change arising from the 2007 Budget)
Enterprise Zone Buildings	100	initial allowance
	25	writing down allowance on reducing balance
Motor Vehicles	25	up to 1/4/08 (CT) and 6/4/08 (IT) on the reducing balance with a maximum of £3,000
	10	(From 1 April 2008 (CT) 6 April 2008 (IT) business cars with a CO2 emission above 160g/km)
	20	the remainder
	100	first year allowance on low emission vehicles ( no more than 110g/km) extended to 31 March 2013.
Industrial Buildings	4	on cost (being phased out over 4 years until 2010/11)
Certain fixtures integral with Industrial Buildings will only be eligible to	10	from 2008/09.
Long Life Assets, those with a useful economic life of at least 25 years will be	10	from 6 April 2008 (previously 6%)
Plant and Machinery (expected life less than 25 years)	20	on the reducing balance from 2008/09 (25% prior to that. New from 2008-09, an Annual Allowance on first£50,000 of expenditure on Plant & Machinery is available is available to small businesses

		prior to that: 50 first year allowance for small businesses 40 for larger enterprises.

Plant and Machinery to reduce water use and improve water quality	100	first year allowance. The Water Technology List gives details of qualifying technologies and products

Plant and Machinery (expected life of 25 years or more)	8	on the reducing balance but raised to 10% from 2008-09
Patents Rights and 'Know How	25	writing down allowance on reducing balance
Scientific Research	100
Research and Develop ment Tax Credit	150	For small and medium sized businesses from 1/4/2000 (restrictions)

Miscellaneous

          National Minimum Wage
          Interest Payable to HM Revenue & Customs
          Interest on Tax Repayable by HM Revenue & Customs
          Vehicle Excise Duty Rates
          Companies House Late Filing Penalties

National Minimum Wage

	Youth Rate (18 - 21)	Adult Rate	16 - 17 year olds
	£	£	£
From	Per Hour	Per Hour	Per Hour
1/10/2004	4.10	4.85
1/10/2005	4.25	5.05
1/10/2006	4.45	5.35	3.30
1/10/2007	4.60	5.52	3.40
1/10/2008	4.77	5.73	3.53

Accommodation Offset
Employers who provide accommodation as part of the job are permitted to offset a maximum of £3.75 per day (£26.25 per week) against the National Minimum wage calculation. 16 and 17 year old youths must be paid not less than £3.00 per hour (£3.30 from 1/10/2006).

Interest Payable to Inland Revenue

	For late payment of Income Tax, NIC, CGT	For late payment of Corporation Tax, Pay & File	For late payment of Corporation Tax Self Assessement	For late payment of Inheritance Tax		Beneficial Loan Rate
	%	%	%	%		%
6/04/00	8.50	6.75	8.50	5.00	6/09/07	7.25
6/05/01	7.50	6.00	7.50	4.00	6/073/09	6.25
6/11/01	6.50	5.00	6.50	3.00	6/01/02	5.94
6/08/03	5.50	4.25	5.50	2.00	6/01/02	5.00
6/12/03	6.50	5.00	6.50	3.00	6/04/03	5.00
6/09/04	7.50	6.00	7.50	4.00	6/04/04	5.00
6/09/05	6.50	5.25	6.50	3.00	6/04/05	5.00
6/09/06	7.50	6.00	7.50	4.00	6/04/06	5.00
6/04/07	7.50	6.00	7.50	4.00	6/04/07
6/06/07	8.50	6.75	8.50	5.00	6/04/08
6/01/08	7.50	6.00	7.50	4.00
6/11/08	6.50	5.00	5.50	3.00
6/12/08	5.50	4.25	5.50	3.00
6/01/09	4.50	3.50	4.50	2.00
2701/09	3.50	2.75	3.50	1.00	01/03/2009	4.75

Interest on Tax Repayable by Inland Revenue

From	Income Tax, NIC, CGT %	Corporation Tax Pay & File %	CT Self Assessment %	Inheritance Tax %
26/04/2000	4.00	3.50	5.00	5.00
06/05/2001	3.50	2.75	4.00	4.00
06/11/2001	2.50	2.00	3.00	3.00
06/08/2003	1.75	1.25	2.00	2.00
06/12/2003	2.25	2.00	3.00	3.00
06/09/2004	3.00	2.75	4.00	4.00
06/09/2005	2.25	2.00	3.00	3.00
06/09/2006	3.00	2.75	4.00	4.00
06/08/2007	4.00	3.50	5.00	5.00
06/01/2008	3.00	2.75	4.00	4.00
06/11/2008	2.25	2.00	3.00	3.00
06/12/2008	1.50	1.25	2.00	3.00
06/01/2009	0.75	0.50	1.00	2.00
27/01/2009	0.00	0.00	0.00	1.00

Vehicle Excise Duty for licences taken out from 23 March 2006

Private Vehicles (Registered on or after 1 March 2001)

TC48, 49 and 59

	2008/09 (1)		2009/10		2010/11
Bands	CO2 Emission in g/km	12 Months Standard Rate	CO2 Emission in g/km	12 Months Standard Rate	First Year Rate	Standard Rate (4)
		£		£	£	£
A	up to 100	0.00	up to 100	0.00	0.00	0.00
B	101 to 120	35.00	101 to 110	20.00	0.00	20.00
C	121 to 150	120.00	111 to 120	30.00	0.00	35.00
D	151 to 165	145.00	121 to 130	90.00	0.00	95.00
E	165 to 185	170.00	131 to 140	110.00	115.00	115.00
F	over 185 (2)	210.00	141 to 150	120.00	125.00	125.00
G	over 226 !3)	400.00	151 to 160	150.00	155.00	155.00
H			161 to 170	175.00	250.00	180.00
I			171 to 180	205.00	300.00	210.00
J			181 to 200	260.00	425.00	270.00
K			201 to 225	300.00	550.00	310.00
L			226 to 255	415.00	750.00	430.00
M			over 255	440.00	950.00	455.00

Notes ()
(1)	2008/09 takes effect from 13 March 2008
(2)	Cars registered before 23 March 2006
(3)	Cars registered on or after 23 March 2006
(4)	Alternative fuel car discount 2009/10 £20 bands A-I, £15 bands J-M, 2010-11 £10 all cars.

Cycles and Tricycles
Motor Cycles TC17		From 13 March 2008 12 month s rate £
(not over 450 kg unladen)
	not over 150cc	15.00
	151 to 400cc	33.00
	401 to 600cc	48.00
	Over 600cc	66.00
Tricycles TC50
(not over 450kg unladen)
	not over 150cc	15.00	`
	All others	65.00

Further Details of these and other vehicles can be found on theDVLC website at:
http://www.dvla.gov.uk/vehicles/taxation.htm

Companies House Late Filing Penalties

The Companies (Late Filing Penalties) and Limited Liability Partnerships (Filing Periods and Late Filing Penalties) Regulations 2008 dictate that from 1 February 2009 the following schedule comes into force:
How late are the Accounts delivered	Private Companies £	Public Liability Companies £
Not more than one month	150	750
More than one month but not more than three months	375	1500
Nore than three months but not more than six months	750	3000
Mote than six months	1500	7500

This section of the site is still under development