| 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 | ![]() |
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| 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:
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. |
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| Income Tax |
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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 |
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| Income Tax - Exemptions |
2008/09 2007/08 2006/07 2005/06 2004/05 2003/04
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| Income Tax - Rates |
2009/10 2008/09 2007/08 2006/07 2005/06 2004/05 2003/04
£ £ £ £ £ £ £
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| Eligible Pension Contributions |
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| Mileage Allowances (Authorised Rates) |
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| Benefits in Kind | ||
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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 |
| 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, carhttp://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) |
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| 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. |
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| * 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% |
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| 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: |
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| 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 |
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| Employee Contributions
Contributions by employees for the private use of a car, reduce the value of the benefit pound for pound. |
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| 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. |
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| 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. |
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| 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. |
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| Van Benefits |
Van Benefit (per vehicle) |
| Car Fuel Benefits |
From 5 April 2003 (2003/04 onward), Car Fuel Benefit is calculated by reference to a constant |
| Other Benefits |
To From
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| Value Added Tax |
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About VAT Rates Rate Changes Thresholds VAT Scale Charges Return to Main Menu |
Marsworth Avenue from Woodhall Gate, Pinner |
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| About Rates |
From an accounting perspective, for VAT purposes, business transactions fall into |
| Rate Changes |
From 1/12/96 1/4/98 1/4/99 1/4/2000 1/4/2001 25/4/2002
% % % % % %
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| VAT Thresholds |
From 1/4/08 1/4/07 1/4/06 25/4/05 1/4/04 10/4/03
£ £ £ £ £
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| 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.
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| 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
Scale Charges for periods prior to 1 May 2007: |
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| Air Passenger Duty |
From 1 November 2009, Air Passenger Duty is to be replaced by Aviation Duty, that will be charged per |
| Social Security - Menu | ||
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Contributions Benefits |
Bridge Street Pinner, late evening 30 Jan 2003 | |
| Social Security - Class I Contributions - Employees Not Contracted Out |
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| Social Security - Class I Contributions - Employees Not Contracted Out 2008 / 09 |
Pay Rate Weekly Employee Employer
£ Regular Reduced Rates
Below 90.00 Nil Nil Nil
Up to 105.00 Nil Nil Nil
Over 105.00 11% 4.85% 12.8%
Over 770.00 1% 1.00% 12.8%
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| Social Security - Class I Contributions - Employees Not Contracted Out 2007 / 08 |
Pay Rate Weekly Employee Employer
£ Regular Reduced Rates
Below 87.00 Nil Nil Nil
Up to 100.00 Nil Nil Nil
Over 100.00 11% 4.85% 12.8%
Over 670.00 1% 1.00% 12.8%
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| Social Security - Class I Contributions - Employees Not Contracted Out 2006 / 07 |
Pay Rate Weekly Employee Employer
£ Regular Reduced Rates
Below 84.00 Nil Nil Nil
Up to 97.00 Nil Nil Nil
Over 97.00 11% 4.85% 12.8%
Over 645.00 1% 1.00% 12.8%
The Upper Earnings limit £32,760
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| Social Security - Class I Contributions - Employees Not Contracted Out 2005 / 06 |
Pay Rate Weekly Employee Employer
£ Regular Reduced Rates
Below 82.00 Nil Nil Nil
Up to 94.00 Nil Nil Nil
Over 94.00 11% 4.85% 12.8%
Over 630.00 1% 1.00% 12.8%
The Upper Earnings limit £32,760
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| Social Security - Class I Contributions - Employees Not Contracted Out 2004 / 05 |
Pay Rate Weekly Employee Employer
£ Regular Reduced Rates
Below 79.00 Nil Nil Nil
Up to 91.00 Nil Nil Nil
Over 91.00 11% 4.85% 12.8%
Over 610.00 1% 1.00% 12.8%
The Upper Earnings limit £31,720
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| Social Security - Class I Contributions - Employees Not Contracted Out 2003 / 04 |
Pay Rate Weekly Employee Employer
£ Regular Reduced Rates
Below 77.00 Nil Nil Nil
Up to 89.00 Nil Nil Nil
Over 89.00 11% 4.85% 12.8%
Over 595.00 1% 1.00% 12.8%
The Upper Earnings limit £30,940
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| Class II Self-Employed N.I. Contributions |
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| Class III Voluntary N.I. Contributions |
Weekly
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| Class IV Self-Employed N.I. Contributions on Profits |
2008/09 2007/08 2006/07 2005/06 2004/05 2003/04
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| 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 |
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| Social Security - Class I Authorised Mileage Rates |
Where employees are obliged by their contracts of employment to use their vehicles |
| Social Security Benefits - (Partial Selection) |
2008/09 2007/08 2006/07 2005/06
£ £ £ £
Per Week Per Week Per Week Per Week
Retirement Pension:
Standard State Pension 90.70 87.30 84.25 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
(subs chdn) 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
Pension 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 reminder
100 first year allowance on low emission vehicles (
no more than 110g/km) extended to 31 March 2013.
Industrial Buildings 4 on cost (to be 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 20 on the reducing balance from 2008/09 (25% prior to that.
life less than 25 years) New from 2008-09, an Annual Allowance on first£50,000 of
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| 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 Adult Rate 16-17
(18 - 21) olds
£ £ £
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| Interest Payable to Inland Revenue |
For Late For Late For Late For Late
Payment Payment Payment Payment
Income Tax, Corporation Beneficial
NIC, Tax Pay & CT Self Inheritance Loan Rate
From CGT File Assessment Tax
% % % % %
6/04/00 8.50 6.75 8.50 5.00 1999/00 6.25
6/05/01 7.50 6.00 7.50 4.00 2000/01 6.25
6/11/01 6.50 5.00 6.50 3.00 2001/02 5.94
6/08/03 5.50 4.25 5.50 2.00 2002/03 5.00
6/12/03 6.50 5.00 6.50 3.00 2003/04 5.00
6/09/04 7.50 6.00 7.50 4.00 2004/05 5.00
6/09/05 6.50 5.25 6.50 3.00 2005/06 5.00
6/09/06 7.50 6.00 7.50 4.00 2006/07 5.00
6/04/07 7.50 6.00 7.50 4.00 2007/08 6.25
6/08/07 8.50 6.75 8.50 5.00 2008/09 6.25
6/01/08 7.50 6.00 7.50 4.00
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| Interest on Tax Repayable by Inland Revenue |
Income Tax, Corporation
NIC, Tax Pay & CT Self Inheritance
From CGT File Assessment Tax
% % % %
6/04/00 4.00 3.50 5.00 5.00
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| Vehicle Excise Duty for licences taken out from 23 March 2006 |
From 13
March 2008
12 months
Motor Cycles TC17 £
(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 66.00
Private Vehicles (Registered on or after 1 March 2001
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| 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 £ |
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| 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 |
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