Call us on 01923 275410

Tax Rates and Allowances

Below you will find this year's and last year's tax allowances. Please contact us to make sure that you have got the correct information.

  2013/14 2012/13
Income Tax      
       
Personal allowance Under 65 £9,440 £8,105
  65 to 74 £10,500 £10,500
  75 and over £10,660 £10,660
  Blind person's allowance £2,160 £2,100
       
Tax Rates      
Basic rate band   £32,010 £34,370
Basic tax rate   20% 20%
Tax on UK dividends within starting and basic rate bands   10% 10%
Higher rate band   £32,010- £150,000 £34,371- £150,000
Higher tax rate   40% 40%
Higher rate dividend   32.5% 32.5%
Additional rate band   Over £150,000 Over £150,000
Additional rate tax   45% 50%
Additional rate dividend   37.5% 42.5%

 

Corporation Tax    
Corporation tax rates and bands are as follows:    
Financial year to 31 March 2014 31 March 2013
Taxable Profits    
First £300,000 20% 20%
Next £1,200,000 23.75% 25%
On profits over £1,500,000 23% 24%
Marginal relief fraction 3/400 1/100
     
Corporation Tax Payable    
For small and medium sized companies
- Nine months and one day after the end of the accounting period
 
The Annual Investment Allowance (AIA) offers tax relief at 100% on qualifying expenditure in the year of purchase. The maximum you can deduct from your taxable profits is £250,000 (from 1 January 2013). This limit is adjusted for short or long periods, and also for periods that span the operative dates and rates of allowance.

 

Mileage Allowances    
For employees using their own transport    
The approves maximum tax and national insurance free mileage allowances for employees using their own transport for business are as follows:
     
  First 10,000 miles Over 10,000 miles
Car 45p 25p
Motorcycle 24p 24p
Bicycle 20p 20p
     
Income Tax and NICs are due when allowances exceed these rates. Employees can claim tax relief on any shortfall.
Rates of up to 5p per mile, per passenger, are also tax and NIC free when paid for the carriage of fellow employees on the same business trip.

 

Value Added Tax    
From 1 Apr 2013 1 Apr 2012
Standard rate 20% 20%
Standard rate VAT fraction 1/6 1/6
Reduced rate 5% 5%
Reduced rate VAT fraction 1/21 1/21
Taxable Turnover Limits    
Registration - last 12 months or next 30 days over £79,000 £77,000
Deregistration - next 12 months under £77,000 £75,000
Cash accounting scheme - up to £1,350,000 £1,350,000
Optional flat rate scheme - up to £150,000 £150,000
Annual accounting scheme - up to £1,350,000 £1,350,000