Tax Rates

Personal Allowances 2014/15 2013/14
     
General 10,000 9,440

Income Limit

100,000 100,000

Born 6/4/38 - 5/4/48

10,500 10,500

Born before 6/4/38

10,660 10,660

 

   
 
Income Tax Rates 2014/15  
(Taxable Income)    
0 - 31,865 20%  
31,866 - 150,000 40%  
Over 150,000 45%  
     
 

Income from dividends is taxed at 10% within the starting and basic rate bands, at 32.5% in the higher rate band and at 37.5% thereafter. These rates are applied to the dividend grossed-up by a tax credit of 1/9. 

 

 

National Insurance Contracted In Contracted Out
Class 1    
Employees (Weekly earnings)    
First 153 Nil Nil
153 - 770 12% 10.6%
770 - 805 12% 12%
Over 805 2% 2%
     
Employers (Weekly earnings)    
First 153 Nil Nil
153 - 770 13.8% 10.4%
Over 770 13.8% 13.8%
     
 

Class 1A and Class 1B  -  13.8%

Class 2 (self employed)  -  Flat rate of £2.75 per week

Class 3 (voluntary)  -  £13.90 per week

Class 4 (self employed)  -  9% of profits between £7,956 and £41,865 per year and then 2% of profits over £41,865.

 

 

Corporation Tax To 31/03/15 To 31/03/14
     
Full Rate 21% 23%
Small Profits Rate 20% 20%
20% limit 300,000 300,000
Marginal relief limit 1,500,000 1,500,000
     
 
Value Added Tax   2014/15
     

Standard Rate

  20% 

Lower Rate

  5% 

Registration level

  81,000 

 

   
 
Capital Allowances   2014/15
     
Annual Investment Allowance Max 250,000 100%
General writing down allowance   18%
Cars   8%
Special rate expenditure   8%
     
 
Capital Gains Tax   2014/15
     
Standard Rate   18%
Higher Rate   28%
Entrepreneur Rate   10%
Annual Exemption   11,000
     
 
 
Inheritance Tax   2014/15
     
Up to 325,000   Nil
Over 325,000   40%
> 10% of estate to charity   36%
Annual Gift Exemption   3,000
     
 
Mileage Allowances   2014/15
(Cars & Vans)    
Up to 10,000 business miles   45p
Over 10,000 business miles   25p
     
 
Minimum Wage   From 01.10.14
     
Under 18   £3.79
18-20   £5.13
21 or over    £6.50
Apprentice rate   £2.73
     
 
 
ISA Limits 2014/15 2013/14
     
Overall 15,000 11,520
Cash N/A 5,760
Junior 4,000 3,720