Income Tax Rates

2009-2010

%

2008-2009

%

2007-2008

%

2006-2007

%

Starting tax rate

-

-

10

10

Basic tax rate

20

20

22

22

Higher tax rate

40

40

40

40

Starting rate on savings income

10

10

-

-

Starting rate band on savings income

£0 - £2,440

£0 - £2,320

-

-

Tax on savings income

20

20

20

20

Tax on dividends at Basic Rate

10

10

10

10

Tax on dividends at Higher Rate

32.50

32.50

32.50

32.50

Starting rate band

-

-

to £2,230

to £2,150

Basic rate band

£0 -
£37,400

£0 -
£34,800

£2,231 - £34,600

£2,151 - £33,300

Higher rate band

above
£37,400

above
£34,800

above
£34,600

above
£33,300

Personal allowances

2009-2010

2008-2009

2007-2008

2006-2007

Standard payroll tax code

647L

603L

522L

503L

Personal allowance

£6,475

£6,035

£5,225

£5,035

- age 65 to 74

£9,490

£9,030

£7,550

£7,280

- age 75 and over

£9,640

£9,180

£7,690

£7,420

Married couples allowance (Note 1)

- age 65 to 74

Note 2

£6,535

£6,285

£6,065

- age 75 and over

£6,965

£6,625

£6,365

£6,135

The income limit for age-related allowances

£22,900

£21,800

£20,900

£20,100

Minimum amount of Married Couples Allowance

£2,670

£2,540

£2,440

£-

Blind person's allowance

£1,890

£1,800

£1,730

£1,660

Note 1: Tax relief for the Married Couple's Allowance is given at 10%. These allowances reduce by £1 for every £2 of taxable income where the income is above the limits given above. The reduction in the allowance will not reduce below the Personal Allowance or the minimum amount of the Married Couples Allowance.

Note 2: At some point during 2009/2010 all claimants in this category will reach the age of 75 and will therefore be entitled to claim the higher rate of relief of 75 and over for Married Couples Allowance.

Key dates in 2009 for personal Self Assessment tax payers

31 July 2009

The date by which the second payment on account in respect of 2008/2009 must be paid.

31 October 2009

Deadline for submission of a HMRC paper tax return (previous it was possible to file paper returns up to 31 January in the following year).

5 October 2009

Deadline for notifying HMRC of new sources of income unless a 2008/2009 tax return has already been issued.

30 December 2009

Deadline for e-filing the tax return where the tax payer requires the 2008/2009 balancing payment to be collected through next year's tax code (less than £2,000).

31 January 2010

Deadline for submitting online your 2008/2009 self assessment tax return. It is also the date by which the tax payer will be required to settle the 2008/2009 balancing payment and make the first payment on account in respect of 2009/2010.

Capital Gains Tax

2009-2010

£

2008-2009

£

2007-2008

£

2006-2007

£

Annual exempt amount:

 - Individuals etc

not available

£9,600

£9,200

£8,800

 - Trustee

not available

£4,800

£4,600

£4,400

From 1 April 2008

Capital Gains Tax will be charged at a Standard Rate of 18%.

Entrepreneur's Relief gives an effective rate of 10% on gains up to £1 million. It is available in respect of gains made on: the disposal of a business; gains made on the disposal of all or part of a business; gains made on the disposal of assets following the cessation of a business; or gains made by certain individuals involved in the running of a business.

Prior to 1 April 2008

The amount chargeable to CGT is added onto the top of income liable to income tax for individuals and is charged to CGT at the following rates:
- below the starting rate limit at 10%
- between the starting rate and standard rate limits at 20%, and
- above the basic rate limit at 40%.
For individuals, gains on disposals after 5 April 1998 benefit from indexation relief up to that date. Gains are reduced by taper relief reflecting the number of complete years after 5 April 1998. Non-business assets acquired before 17 March 1998 qualify for a bonus year of taper relief.

The holding period required to receive maximum taper relief for business assets is two years, and for non-business assets is ten years.

Inheritance Tax

2009-10

£

2008-2009

£

2007-2008

£

2006-2007

£

 No tax charge arises up to:

£325,000

£312,000

£300,000

£285,000

 Balance taxed at 40% above:

£325,000

£312,000

£300,000

£285,000

Tapering relief is given in respect of gifts made between three and seven years before death.
Where tax is payable on lifetime gifts (other than those taxable only because they are made within seven years of death), tax is charged at 20%.

Stamp duty: Transfers of land and buildings
(consideration paid) from 23 March 2006

Residential land in the UK

Non-residential

Disadvantaged Areas

All Other Areas

All Land

 Zero

£0 to £150,000

£0 to £125,000

£0 to £150,000

 1%

over £150,000 to £250,000

over £125,000 to £250,000

over £150,000 to £250,000

 3%

over £250,000 to £500,000

over £250,000 to £500,000

over £250,000 to £500,000

 4%

Over £500,000

Over £500,000

Over £500,000

Disadvantaged Area Relief for non-residential land transactions ended on 17 March 2005.

New leases (lease duty based on Net Present Value of rents for the term of the lease)

NPV of total rent

Residential

NPR of total rent

Non-residential

 Zero

£0 to £125,000

£0 to £150,000

 1%

Over £125,000

Over £150,000

When calculating the duty payable on the Net Present Value of the lease, you must reduce the NPV calculation by either the £125/150K band before applying the 1% rate.

National Insurance
Class 1

2009-2010

£

2008-2009

£

2007-2008

£

Class 1
Men over 65, Women over 60, and children under 16 do not pay Class 1 contributions.

Employee's Earnings Limits

Weekly - Monthly - Yearly

Weekly - Monthly - Yearly

Weekly - Monthly - Yearly

- Lower earnings limit (LEL)
The minimum level of earnings employees need to qualify for benefit.

£95 - £412 - £4,940

£90 - £390 - £4,680

£87 - £377 - £4,524

- Earnings threshold (ET)
The level of earnings above which employees Class 1 contributions become payable.

£110 - £477 - £5,720

£105 - £455 - £5,460

£100 - £433 - £5,200

- Upper earnings limit (UEL)
Employees do not pay Class 1 contributions above this level.

£844 - £3,657 - £43,888

£770 - £3,337 - £40,040

£670 - £2,903 - £34,840

Employee's Class 1 NI rates

- Contracted in

11% to UEL then 1%

11% to UEL then 1%

11% to UEL then 1%

- Contracted out

9.4% to UEL then 1%

9.4% to UEL then 1%

9.4% to UEL then 1%

- Married woman's reduced rate

4.85% to UEL then 1%

4.85% to UEL then 1%

4.85% to UEL then 1%

Employer's Earnings Limits

Weekly - Monthly - Yearly

Weekly - Monthly - Yearly

Weekly - Monthly - Yearly

- Earnings threshold (ET)
Employers pay Class 1 contributions on all earnings above this level.

£105 - £455 - £5,460

£105 - £455 - £5,460

£100 - £433 - £5,200

Employer's Class 1 NI rates

12.8% above ET

12.8% above ET

12.8% above ET

National Insurance Class 2

2009-2010

£

2008-2009

£

2007-2008

£

2006-2007

£

2005-2006

£

Self-employed National Insurance

- on annual earnings over

£5,075

£4,825

£4,635

£4,465

£4,345

- weekly contribution

£2.40

£2.30

£2.20

£2.10

£2.10

- annual contribution

£124.80

£119.60

£114.40

£109.20

£109.20

National Insurance Class 3

2009-2010

£

2008-2009

£

2007-2008

£

2006-2007

£

2005-2006

£

Voluntary contributions:

- weekly contribution

£12.05

£8.10

£7.80

£7.55

£7.35

- annual contribution

£626.60

£421.20

£405.60

£392.60

£382.20

National Insurance Class 4

2009-2010

£

2008-2009

£

2007-2008

£

2006-2007

£

Self-employed National Insurance on taxable profits between:

- Lower limit

£5,715

£5,435

£5,225

£5,035

- Upper limit

£43,875

£40,040

£34,840

£33,540

- Rate applied

8% of £5,715 to £43,875, then 1%

8% of £5,435 to £40,040, then 1%

8% of £5,225 to £34,840, then 1%

8% of £5,035 to £33,540, then 1%

- Maximum payable

£3,052.80 + 1%

£2,768.40 + 1%

£2,369.20 + 1%

£2,280.40 + 1%

Mileage Rates to be used for company owned vehicles from 1 January 2009

Petrol

Diesel

LPG

 - Up to 1400cc

10p

11p

7p

 - 1401cc to 2000cc

12p

11p

9p

 - over 2000cc

17p

14p

12p

Mileage Rates to be used for company owned vehicles from 1 July 2008 to 31 December 2008

Petrol

Diesel

LPG

 - Up to 1400cc

12p

13p

7p

 - 1401cc to 2000cc

15p

13p

9p

 - over 2000cc

21p

17p

13p

Mileage Rates to be used for company owned vehicles from 1 January 2008 to 30 June 2008

Petrol

Diesel

LPG

 - Up to 1400cc

11p

11p

7p

 - 1401cc to 2000cc

13p

11p

8p

 - over 2000cc

19p

14p

11p

HM Revenue & Customs will accept that no VAT, income tax or NIC tax will arise on payments made to employees that pay for their own fuel and are reimbursed for business journeys at the above mileage rates. The same rates can be used by employees to reimburse their employer for private journeys, where all fuel is paid for by the employer. Detailed daily mileage logs of the business journeys undertaken for each employee are essential to support any claims made.

VAT thresholds and limits

Registration
threshold

Deregistration
limit

from 1 May 2009

£68,000

£66,000

 01.04.08 to 30.04.09

£67,000

£65,000

 01.04.07 to 31.03.08

£64,000

£62,000

 01.04.06 to 31.03.07

£61,000

£59,000

 01.04.05 to 31.03.06

£60,000

£58,000

 01.04.04 to 31.03.05

£58,000

£56,000

 10.04.03 to 31.03.04

£56,000

£54,000

 25.04.02 to 09.04.03

£55,000

£53,000

 01.04.01 to 24.04.02

£54,000

£52,000

 01.04.00 to 31.03.01

£52,000

£50,000

 01.04.99 to 31.03.00

£51,000

£49,000

 01.04.98 to 31.03.99

£50,000

£48,000

 01.12.97 to 31.03.98

£49,000

£47,000

Road Fuel Scale charges for periods after 1 May 2009

VAT fuel scale charge

VAT at 15%
VAT changes 01.01.2010

VAT exclusive charge

CO2 Band

£(month/Qtr)

£(month/Qtr)

£(month/Qtr)

 120 or less

£42 / £126

£6.26 / £18.77

£35.74 / £107.23

 125

£63 / £189

£9.38 / £28.15

£53.62 / £160.85

 130

£63 / £189

£9.38 / £28.15

£53.62 / £160.85

 135

£63 / £189

£9.38 / £28.15

£53.62 / £160.85

140

£67 / £201

£9.98 / £29.94

£57.02 / £171.06

145

£71 / £214

£10.57 / £31.87

£60.43 / £182.13

150

£75 / £226

£11.17 / £33.66

£63.83 / £192.34

155

£79 / £239

£11.77 / £35.60

£67.23 / £203.40

160

£83 / £251

£12.36 / £37.38

£70.64 / £213.62

165

£88 / £264

£13.11 / £39.32

£74.89 / £224.68

170

£92 / £276

£13.70 / £41.11

£78.30 / £234.89

175

£96 / £289

£14.30 / £43.04

£81.70 / £245.96

180

£100 / £302

£14.89 / £44.98

£85.11 / £257.02

185

£104 / £214

£15.49 / £46.77

£88.51 / £267.23

190

£109 / £327

£16.23 / £48.70

£92.77 / £278.30

195

£113 / £339

£16.83 / £50.49

£96.17 / £288.51

200

£117 / £352

£17.43 / £52.43

£99.57 / £299.57

205

£121 / £365

£18.02 / £54.36

£102.98 / £310.64

210

£126 / £378

£18.77 / £56.30

£107.23 / £321.70

215

£130 / £390

£19.36 / £58.09

£110.64 / £331.91

220

£134 / £403

£19.96 / £60.02

£114.04 / £342.98

225

£138 / £416

£20.55 / £61.96

£117.45/ £354.04

230

£142 / £428

£21.15 / £63.74

£120.85 / £364.26

235 or above

£147 / £441

£21.89 / £65.68

£125.11 / £375.32

Van Benefits

2009-2010

2008-2009

2007-2008

2006-2007

Under 4Yrs

Over 4Yrs

Van Benefit

£3,000

£3,000

£3,000

£500

£350

Fuel Benefit

£500

£500

£500

Included in above

Corporation Tax

YE 31.03.10 (2009)

YE 31.03.09 (2008)

YE 31.03.08 (2007)

YE 31.03.07 (2006)

Profits Band

%

Profits Band

%

Profits Band

%

Profits Band

%

 Small companies rate

£0 - 300K

21%

£0 - 300K

21%

£0 - 300K

20%

£0 - 300K

19%

 Marginal Rate for small companies

£300K - 1.5M

29.75%

£300K - 1.5M

29.75%

£300K - 1.5M

32.50%

£300K - 1.5M

32.75%

 Full rate

Above £1.5M

28%

Above £1.5M

28%

Above £1.5M

30%

Above £1.5M

30%

 Small companies fraction

7/400

1/40

11/400