2012 Tax Cards
Main Reliefs
| Allowed at top rate of tax | 2012/13 | 20011/12 |
| Personal allowance (PA) | £8,105 | £7,475 |
| Personal allowance (65-74)* | 10,500 | 9,940 |
| Personal allowance (75 and over)* | 10,660 | 10,090 |
| Blind person’s allowance | 2,100 | 1,980 |
| Allowed only at 10% | ||
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married couple’s allowance (MCA)* (only available if born before 6th April 1935) |
7,705 | 7,295 |
| income limit for age-related allowances | 25,400 | 24,000 |
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*AA reduced by £1 for every £2 by which income exceeds limit. Personal AA reduced before MCA until equal to normal PA. MCA reduced to minimum £2,960 (2011/12: £2,800). PA is withdrawn at £1 for every £2 by which total income exceeds £100,000 (PA is nil at income of £116,210 or more). |
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Rate Bands
| 2011/12 | 2011/12 | ||||||||||||||||||||||||||||||||||||||
| basic rate band (BRB) | 34,370 | 35,000 | |||||||||||||||||||||||||||||||||||||
| higher rate band (HRB) | 34,371-150,000 | 35,001-150,000 | |||||||||||||||||||||||||||||||||||||
| Additional Rate | over 150,000 | over 150,000 | |||||||||||||||||||||||||||||||||||||
| * BRB and HRB extended by Gift Aid donations and pension contributions up to permitted limit.. | |||||||||||||||||||||||||||||||||||||||
| Tax rates | |||||||||||||||||||||||||||||||||||||||
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Pension Contributions
| Maximum annual tax-efficient gross contributions to age 75 | |
| individuals | £3,600 or 100% of earnings to £50,000 |
| employers | £50,000 less employee contributions |
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Maximum tax-efficient fund on taking benefits in 2012/13: £1.5m. Only current earnings count for the 100% limit. Extra contributions above £50K may use unused £50K limit of preceding three years. Most personal pension contributions are paid net of basic rate tax. |
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Annual Investment Limits
| 2012/13 | 2011/12 | |
| Individual Savings Account | £11,280 | £10,680 |
| Junior ISA | 3,600 | 3,600 |
| Enterprise Investment Scheme | **1,000,000 | **500,000 |
| Venture Capital Trust | **200,000 | **200,000 |
| Seed Enterprise Investment Scheme | *100,000 | N/A |
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** Relief at 30% |
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National Insurance Contributions
| class 1 (employees) | |||
| From 6.4.2012, only employment with a salary-related pension scheme can use the lower contracted-out NIC rates. | |||
| contracted in | contracted out | ||
| employee contributions | |||
| – on earnings between £146.01 – £770pw | 12.0% | 10.6% | |
| – on earnings between £770.01 – £817pw | 12.0% | 12.0% | |
| – on earnings above £817pw | 2.0% | 2.0% | |
| employer contributions | |||
| – on earnings between £144.01 and £770pw | 13.8% | 10.4% | |
| – on earnings above £770pw | 13.8% | 13.8% | |
| Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B). | |||
| class 2 (self-employed) | |||
| flat rate per week | £2.65 | ||
| small earnings exception: profits per annum | £5,595 | ||
| class 3 (voluntary) | |||
| flat rate per week | £13.25 | ||
| class 4 (self-employed) | |||
| on profits £7,605 – £42,475 | 9.0% | ||
| on profits over £42,475 | 2.0% | ||
Car Benefit Assessment
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Taxable benefit is chargeable value multiplied by chargeable percentage. |
| CO2 ratings | petrol | diesel |
| 1-75g/km | 5% | 8% |
| 76-99g/km | 10% | 13% |
| 100-104g/km | 11% | 14% |
| – increasing by 1% at 105, 110, 115 etc., until the max. 35% (petrol or diesel). | ||
car fuel benefit
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The benefit of free fuel for private use in a company car is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £18,000 (2009/10: £16,900). The taxable amount is therefore between £900 (min) and £6,300 (max). VansChargeable value of £3,000 if private use is more than home-to-work. Car fuel
Employer provides fuel for private motoring in an employer-owned: Employee contributions for fuel do not reduce taxable figure unless all private fuel is paid for. |
Tax Free Mileage Allowances
| higher rate | lower rate | |||
| 2012/13 | ||||
| all cars | 45p | 25p | ||
| motorcycles | 24p | 24p | ||
| bicycles | 20p | 20p | ||
| business passengers | 5p | 5p | ||
| Higher rate allowed up to 10,000 business miles. | ||||
Company carsAdvisory rate to cover fuel cost (rates change several times a year) From 1.3.2012 (From 1.12.2011 to 29.2.2012) |
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| petrol | lpg | diesel | ||
| up to 1400cc | 15p (15p) | 10p (9p) | Up to 1600cc | 13p (12p) |
| 1401 – 2000cc | 18p (18p) | 12p (10p) | 1601 – 2000cc | 15p (15p) |
| over 2000cc | 26p (26p) | 17p (15p) | Over 2000cc | 19p (18p) |
| These figures usually change on 1 June and 1 December each year. | ||||
Inheritance Tax
| charges on or after 6th april 2009 | rates % | |
| 0 – £325,000 | nil | Nil band frozen |
| above £325,000 | 40% | until 2014/15 |
| Lifetime chargeable transfers at half the death rate, ie 20%. Business property relief of 100% for all shareholdings in qualifying unquoted trading companies and for most unincorporated trading businesses; agricultural property relief at 100% for qualifying holdings of agricultural land. Annual exemption for lifetime gifts £3,000. Small gifts – annual amount per donee £250. Tapering relief applies to reduce the tax on transfers within 7 years of death. The reduction in tax is 20% for survivorship of 3-4 years, 40% for 4-5 years, 60% for 5-6 years and 80% for 6-7 years. | ||
Value Added Tax
| Standard rate (1/6 of VAT-inclusive price) | 20% | ||
| registration level from 1.4.12 | £77,000 per annum | ||
| deregistration level from 1.4.12 | £75,000 per annum | ||
| scale charges | |||
| The scale charges for private use of business fuel are based on the CO2 emissions rating of the car. A different charge will apply for each 5g/km increase between 120g/km and 225/km (max). For a 3 month period starting after 30 April 2012: | |||
| 120 or less | £138.54 net | £27.71 VAT | |
| 130 | 208.33 net | 41.67 VAT | |
| rising per 5g/km by approx* | 13.91 net | 2.78 VAT | |
| 225 or above | 486.46 net | 97.29 VAT | |
| * exact figures must be obtained from full table. | |||
Corporation Tax
| Year to 31.3.2013 | 31.3.2012 | ||
| main rate | 24% | 26% | |
| profits above | £1.5m | £1.5m | |
| small companies rate | 20% | 20% | |
| profits upto | £300k | £300k | |
| small/large marginal band | £300k – £1.5m | £300k – £1.5m | |
| fraction (effective rate) | 1/100 (25%) | 3/200 (27.50%) | |
Main capital allowances
| Allowance % | |
| plant and machinery | |
| – annual investment allowance £25,000 | 100 |
| – certain energy efficient plant, including low emission cars | 100 |
| – writing down allowance: general pool | 18 |
| – writing down allowance: special rate pool | 8 |
| *will fall to £25,000 on 1.4.12 (companies) or 6.4.12 (income tax traders); WDA fall to 18%/8% at same date. | |
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The special rate pool includes long life assets, integral plant in buildings, thermal insulation and cars with CO2 emissions over 160g/km. The general pool contains other plant and machinery. The rates changed in April 2012 and care is required where a period of account straddles the change. |
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Capital Gains Tax
| 2012/13 | 2011/12 | |
| Annual exempt amount | £10,600 | £10,600 |
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Tax Rate
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| – basic rate taxpayer | 18% | 18% |
| – higher rate taxpayer | 28% | 28% |
| – Entrepreneurs’ Relief (ER) | 10% | 10% |
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Net gains after losses, all reliefs and annual exemption are added to taxable income to determine the applicable CGT rate. ER is available for lifetime gains of up to £10m on disposals of sole trade, interest in partnership trade, or shares in a trading company by an officer or employee owning at least 5%. Trustees receive up to half the annual exemption and pay at a flat rate of 28%. |
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Stamp Duty & Stamp Duty Land Tax
| rates on sales | % of total consideration | |
| shares and marketable securities (nil if value up to £1,000) | 0.5% | |
| land | 0 – threshold | nil |
| threshold – £250,000 | 1% | |
| £250,001 – £500,000 | 3% | |
| £500,001 and over (all properties) | 4% | |
| Over £1M (residential from 6.4.2011) | 5% | |
| Over £2m (residential) | 7% | |
| The threshold is: | ||
| £125,000 | general residential property | |
| £150,000 | residential in “disadvantaged areas” | |
| £150,000 | commercial property | |
Earliest due dates for payment of tax
| income tax | |
| employment | most tax paid under paye |
| interest, dividends | lower/basic rate liability usually settled before receipt |
| untaxed sources, plus balance on employment and higher rates on investment income (self assessment) | Payments on account for 2012/13 on 31.1.13 and 31.7.13 based on 2011/12 tax; balance due 31.1.14 with first instalment for 2013/14. |
| capital gains tax | 31 January following the tax year with self-assessment income tax. |
| inheritance tax | normally 6 months after month of death. |
| corporation tax | Large companies pay by instalments starting 6 1/2 months through the accounting period; small/medium companies pay 9 months and 1 day after end of period. |
Useful Rates
| 2012/13 | |
| Basic Retirement Pension | |
| Single person | £107.45 |
| Married couple | 171.85 |
| Child Benefit | |
| First eligible child | 20.30 |
| Each subsequent child | 13.40 |
| Example rates: | |
| Child Tax Credits | |
| Family element | 545 |
| Threshold for withdrawal | 15,860 |
| National Minimum Wage | |
| From 1 October 2012 – 21 and over | 6.19 |
| From 1 October 2011 – 21 and over | 6.08 |
| Rate for workers aged 18-20 (unchanged) | 4.98 |
You are advised to consult us before acting on any information contained herein.