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... experienced in business”
Telephone 01803-844425
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2014/15 2013/14
£ £
Income tax rates - (non-dividend income)
10% lower rate tax - savings rate only Up to 2,880 Up to 2,790
20% basic rate tax Up to 31,865 Up to 32,010
40% higher rate tax 31,866 - 150,000 32,011 - 150,000
45% additional rate tax Above £150,000 Above £150,000
10% starting rate applies to savings income only and will not apply if non-savings income exceeds threshold.
Income tax rates - (dividend income)
10% rate Up to 34,370 Up to 35,000
32.5% higher dividend rate 34,371 - 150,000 35,001 - 150,000
42.5% higher dividend rate Above £150,000 Above £150,000
Personal allowances
Personal allowance (age under 65) 10,000 9,440
Personal allowance (age 65 - 74) 10,500 10,500
Personal allowance (age 75 and over) 10,660 10,660
Married couple’s allowance (age 75 and over) 7,349 6,332
Married couple’s allowance – minimum amount 3,140 3,040
Married couple’s allowance – maximum amount 8,165 7,915
Income limit for under 65 personal allowance 100,000 100,000
Income limit for age-related allowances 27,000 26,100
Blind person's allowance 2,230 2,160
Abatement of personal allowance will apply of £1 for every £2 of taxable income in excess income limit.
National insurance
Lower earnings limit, primary Class 1 (per week) 107 102
Upper earnings limit, primary Class 1 (per week) 817 817
Upper accrual point * 770 770
Primary threshold (per week) 146 139
Secondary threshold (per week) 144 139
Employee's primary Class 1 rate between primary threshold and
upper earnings 12.00% 12.00%
Employee's primary Class 1 rate above upper earnings limit 2.00% 2.00%
Employee's contracted-out rebate - salary-related scheme 1.40% 1.60%
Employee's contracted-out rebate - money-purchase scheme Abolished 1.60%
Married woman's reduced rate between primary threshold and
upper earnings limit 5.85% 5.85%
Married woman's rate above upper earnings limit 2.00% 2.00%
Employer's secondary Class 1 rate above secondary threshold 13.80% 13.80%
Employer's contracted-out rebate, salary-related schemes 3.40% 3.70%
Employer's contracted-out rebate, money-purchase schemes Abolished 1.40%
Class 2 rate (per week) £2.65 £2.50
Class 2 small earning exception (per year) 5,595 5,315
Special Class 2 rate for share fishermen (per week) £3.30 £3.15
Special Class 2 rate for volunteer development workers £5.35 £5.10
Class 3 rate (per week) £13.25 £12.60
Class 4 lower profits limit 7,592 7,225
Class 4 upper profits limit 42,475 42,475
Class 4 rate between lower profits limit and upper profits limit 9.00% 9.00%
Class 4 rate above upper profits limit 2.00% 2.00%
State pension/pension credit
State pension
Category A or B basic pension 107.45 102.15
Category B basic pension (lower) - husband's insurance 64.40 61.20
Category C or D - non-contributory 64.40 61.20
Pension Credit
Standard minimum guarantee - single 142.70 137.35
Standard minimum guarantee - couple 217.90 209.70
From 6 April 2011, grandparents and other family members will be able to gain credits towards the basic State Pension for caring for children aged 12 or younger for 20 hours per week or more.
Pensions
Annual allowance 50,000 50,000
Lifetime allowance (reducing to 1.5 million from April 2012) 1,500,000 1,800,000
Relief’s and incentives
Enterprise Investment Scheme (EIS) – maximum 1,000,000 500,000
Venture Capital Trust (VCT) – maximum 200,000 200,000
Enterprise Management Incentive Scheme (EMI) – employee limit 240,000 120,000
Income tax relief on EIS schemes 30% 30%
Income tax relief on VCT Schemes 30% 30%
From April 2012 size of company that qualifies for investment under EIS and VCT increases from gross assets less than £7 million , fewer than 50 employees, raising no more than £2 million a year to gross assets less than £15 million, fewer than 250 employees, raising no more than 10 million a year.
Individual Savings Account (ISA):
- total maximum investment 11,280 10,680
- maximum cash element of ISA 5,640 5,340
Capital gains tax
Rate - basic rate tax payer 18% 18%
- higher rate tax payer (from 23 June 2010) 28% 28%
Individuals 10,600 10,600
Certain trusts for disabled persons 10,600 10,600
Other trusts 5,300 5,300
Entrepreneurs Relief lifetime limit 10,000,000 10,000,000
Entrepreneurs rate 10% 10%
Entrepreneurs lifetime limit were £2,000,000 from 6 April to 22 June 2010 and £5,000,000 from 23 June 2010 to 5 April 2011.
Working and Child tax credits rates
Working tax credit
Basic element 1,920 1,920
Couple and lone parent element 1,950 1,950
30 hour element (16 hour element from April 2011) 790 790
Disabled worker element 2,790 2,650
Severe disability element 1,190 1,130
50+ return to work payment (16-29 hours) Removed 1,365
50+ return to work payment (30+ hours) Removed 2,030
Childcare element of the Working tax credit
Maximum eligible cost for one child (per week) 175 175
Maximum eligible cost for two or more children (per week) 300 300
Percentage of eligible costs covered 70.00% 70.00%
Child tax credit
Family element 545 545
Family element, baby addition nil nil
Child element 2,690 2,555
Disabled child element 2,950 2,800
Severely disabled child element 1,190 1,130
Income threshold and withdrawal rates
First income threshold 6,420 6,420
First withdrawal rate 41% 41%
Second income threshold Withdrawn 40,000
Second withdrawal rate 41% 41%
First threshold for those entitled to Child tax credit only 15,860 15,860
Income disregard 10,000 10,000
Child benefit/Guardian's allowance rates
Eldest/only child 20.30 20.30
Other children 13.40 13.40
Guardian's allowance 14.75 14.30 14.10
The child element of child tax credit will increase by £60 above indexation in April 2012. Families earning more than £40,000 per annum will have child tax credit reduced at a rate of 41% from April 2011.
A new income tax charge will apply to taxpayers with income exceeding £50,000 in a tax year, when the benefit is also received by them or their partner. The charge will reduce the financial benefit of receiving child benefit for those with income between £50,000 and £60,000 and remove it completely for taxpayers with income above £60,000.
Inheritance tax
Single persons nil rate band 1 - 325,000 1 - 325,000
Single persons 40% band over 325,000 over 325,000
Married couples or civil partnerships allowance nil rate band 650,000 650,000
From 6 April 2012 a reduced rate of IHT of 36% will be introduced where 10% or more of the net estate is left to charity.
Taxation of trusts
Trust tax rate excluding dividend income 50.00% 50.00%
Dividend trust rate 42.50% 42.50%
Basic rate trust income tax band 1,000 1,000
Corporation tax
Normal main rate (profits above £1,500,000) 24% 26%
Small companies rate (profits below £300,000) 20% 20%
Margin relief fraction 1/100 3/200
Capital Allowances
Main writing down allowance 18% 20%
Special rate writing down allowance 8% 10%
Annual Investment Allowance 25,000 100,000
Research and Development Tax Credit Rates
SME Rate 225% 200%
Large company rate 130% 130%
VAT
Standard rate (increased to 20% from 4 January 2011) 20% 20.0%
Registration threshold 77,000 73,000
Deregistration threshold 75,000 71,000
Cash accounting scheme 1,350,000 1,350,000
Annual accounting scheme 1,350,000 1,350,000
Flat rate scheme 150,000 150,000
Flat rate scheme exit threshold 230,000 230,000
Insurance Premium Tax
Standard rate 6.0% 6.0%
Higher rate 20.0% 20.0%
IPT increased to 6.0% and 20.0% from 4 January 2011.
Full details of the Budget Report 2012 can be found on the HM Revenue & Customs (HMRC) website at: http://www.hmrc.gov.uk/budget2012/index.htm
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This table is reproduced in good faith from that supplied by the Chartered Association of Certified Accountants. Errors and omissions excepted.
Tax Rates and Allowances for 2014/15
Accounting & General-Accountants Devon, Accountancy Devon, Devon, Torquay, Paignton, Brixham, Cornwall, Somerset, Dorset|© 2015
Tel : 01803-844425
info@accountingand
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“As well as a reliable, efficient, accurate and honest accounting service and taxation advice, Alan offers fantastic business support.
His unique blend of top quality accountancy and vast operational experience provides me with a great sounding board.
I would recommend his services to people new to the industry or setting up business just as much as I would to the best and most experienced operators.”
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