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MSR HOUSE 329 Ley street, Ilford, Essex IG1 4AA T: +44(0)2085 142678 F: +44(0)2085 146963 office@msraccounting.org

www.msrgroup.org.uk


TAX GUIDE 2014/15

Personal Tax allowances ....................,........ 03 Income Tax Band

................................. 04

National Insurance ...................................... 05 Tax Credit .................................................... 06 Capital Gains tax .......................................... 07 Corporation Tax ........................................... 07 VAT ............................................................. 08 Stamp Duty ................................................. 08 Pensions ...................................................... 09 Mileage Expenses ........................................ 10


Personal Tax and Allowances Allowances and rates affecting income, savings, pension and investments

£ 9,440 - £10,000

£

2011-12

2012-12

2013-14

2014-15

Personal Allowance

7,475

8,105

9,440

10,000

Basic Rate Limit

35,000

34,370

32,010

31,865

Higher Rate Threshold

42,475

42,475

41,450

41,865

Legislation will be introduced in Finance Bill 2014 to over-ride the amounts in the Indexation Order to set for 2014-15, the personal allowance for those born after 5 April 1948 at £10,000, and the basic rate limit at £31,865.

2014-2015 Rate Basic rate Higher rate Additional rate

2013-14 20% 40% 45%

2014-15 20% 40% 45%

Starting rate for savings income*

10%

10%

Dividend ordinary rate Dividend upper rate

10% 32.50%

10% 32.50%

Dividend additional rate Trust rate

37.50% 45%

37.50% 45%

Starting rate limit (savings income)

£2,790

£2,880

Basic rate band

£0 - 32,010

£0 - 31,865

Higher rate band Additional rate band

£32,011 - 150,000 Over £150,000

£31,866 - 150,000 Over £150,000


Income Tax Allowances Allowances and rates affecting income, savings, pension and investments

2014-2015

2014-2015

Details Personal Allowance those born after 5 April 1948 those born between 6 April 1938 and 5 April 1948 those born before 6 April 1938 Income limit for personal allowance (*1) Income limit for personal allowances (born before 6 April 1948) (*2) Married couple’s allowance (*3) maximum amount (*4) minimum amount (*5) Blind person’s allowance

2013-14

2014-15

Change

9,440 10,500 10,660 100,000 26,100

10,000 10,500 10,660 100,000 27,000

560 900

7,915 3,040 2,160

8,165 3,140 2,230

250 100 70

*1 The personal allowance reduces where the individual’s income is above this limit by £1 for every £2 above the limit. This applies regardless of the individual’s date of birth. *2 This allowance reduces where the individual’s income is above the income limit by £1 for every £2 above the income limit until it reaches the level of the personal allowance for someone born after 5 April 1948. *3 Available to people born before 6 April 1935. Tax relief for this allowance is restricted to 10 per cent. *4 This allowance reduces where the individual’s income is above the income limit by £1 for every £2 above the income limit until it reaches the minimum amount. Any reduction applies after any reduction to the individual’s personal allowance. *5 This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935.


National Insurance

2014/2015

National Insurance contribution thresholds

Week Weekly Lower Earnings Limit (LEL) Weekly Primary Threshold (PT) Weekly Secondary Threshold (ST) Upper Earnings/Profits Limit (UEL/UPL) Small Earnings Exception (SEE) Lower Profits Limit (LPL) N/A

£ per week 2013-14 109 149 148 797 (41,450 per year)

£ per week 2014-15 111 153 153 805 (41,865 per year)

5,725 (per year) 7755 (per year) -

5,885 7956 (per year) 2,000 (per year, per employer)

Class 1 National Insurance contribution rates 2014-15

Employee (primary) Earnings (*1) £ a week Below £111 (LEL) £111 – £153 (PT) (*4) £153 - £805 (UEL) Above £805

NIC rate (*2) per cent 0 0 12 2

Employer (secondary) Earnings (*1) £ a week Below £153 (ST) Above £153 (ST)

Self-employed National Insurance contribution rates 2014-15 Annual profits (*1) (£ a year)

Class 2 (*2) (£ a week)

Class 4 (per cent)

Below £5,885 (SEE) (*3)

0

0

£5,885 to £7,956 (LPL)

2.75

0

£7,956 to £41,865 (UPL)

2.75

9

Above £41,865

2.75

2

NIC rate (*3 ) per cent 0 13.8


Tax Credits

2014/2015

Working and Child Credit Tax rates and thresholds

£ a year

2013-14

2014-15

Change

Basic Element

1,920

1,940

20

Couple and lone parent element

1,970

1,990

20

30 hour element

790

800

10

Disabled worker element

2,855

2,935

80

Severe disability element

1,220

1,255

35

maximum eligible cost for one child

£175 per week

£175 per week

0

maximum eligible cost for two or more children

£300 per week

£300 per week

0

percent of eligible costs covered

70 per cent

70 per cent

0

Family element

545

545

0

Child element

2,720

2,750

30

Disabled child element

3,015

3,100

85

Severely disabled child element

1,220

1,255

35

Income threshold

6,420

6,420

0

Withdrawal rate (per cent)

41%

41%

0

First threshold for those entitled to Child Tax Credit only Income rise disregard

15,910

16,010

100

5,000

5,000

0

Income fall disregard

2,500

2,500

0

Working Tax Credit

Childcare element

Child tax credit

Income thresholds and withdrawal rates

Child Benefit and Guardian’s Allowance £ per week

2013-14

2014-15

Change

First Child

20.3

20.5

20 pence

Second and subsequent children

13.4

13.55

15 pence

Guardian’s Allowance

15.9

16.35

45 pence

Child Benefit


Tax Table 2014/2015

2014/2015

Capital gains tax rates

Capital gains tax rates 201314 18% 28% 10%

Standard rate of CGT Higher rate (for higher rate income tax payers) Rate for Entrepreneurs

Capital gains tax annual exempt amount Individuals etc. Most trustees Individual inheritance tax allowance

£11,000 £5,450 £325,000

201415 18% 28% 10%

£11,100 £5,550 £325,000

Corporation Tax

£ per year (unless stated) £0-£300,000 £300,001 - £1,500,000 £1,500,001 or more

2013-14

2014-15

20%

20%

Marginal rate 23%

Marginal rate 21%


Tax Table 2014/2015

£81,000

Registration Threshold

The Budget should enact important changes to the payment of VAT on internet purchases and downloads. Buyers, for instance of e-books, will now have to pay the VAT rate of their home country, not that of a retailer such as Amazon. It charges just 3% VAT, the rate in its home territory - Luxembourg. From 1 January 2015 it will have to charge UK purchasers the 20% British VAT rate - and then hand that money over to the UK government. It will mean higher charges for some UK internet shoppers who use a foreign service, and it wil l raise about £300m more each year for the Treasury.

Stamp Duty

Rate Zero 1% 3% 4% 5% 7%

Non residential Total value of consideration £0-£150,000 £150,001-£250,000 £250,001-£500,000 over £500,000

Residential £0-£125,000 £125,001-£250,000 £250,001-£500,000 £500,001-£1m £1,000,001-£2m Over £2m


Pensions Pensions Defined Contribution

Small pensions worth up to £10,000 can be taken as a lump sum

Pensions from 27th

(the current max. is £2,000).

March

Option to take up to 3 small pension pots as a lump sum. Increase the overall amount of pension savings you can have to take a taxed lump sum from £18,000 to £30,000. Capped drawdown limit increased to 150% of the equivalent annuity, from 120%. Option to access pension savings flexibly with £12,000 guaranteed pension income (down from £20,000).

Pension reform: April 2015

You will no longer have to buy an annuity, it'll be your choice. Freedom to draw down as much or as little of your pension pot as and when you like. Take a ¼ of your pension pot tax free and anything else you take out is taxed at normal income tax rate (down from 55% for full withdrawal on retirement). Free impartial face-to-face advice on how to get most from your pension for all retirees.

NI Top Up

Voluntary NI contributions to allow pensioners to top up their Additional State Pension. 18 month window to top up from October 2015 until April 2016. Available to everyone reaching State Pension age before 6th April, 2016. Worth an extra £25 a week at most; the buy-in rates are yet to be confirmed.


Mileage Expenses

Company cars: advisory fuel rates

The rates below apply from 1 March 2014. Engine size

Petrol

LPG

1400cc or smaller

14p

9p

1401cc to 2000cc

16p

11p

Bigger than 2000cc

24p

17p

Engine size

Diesel

1600cc or smaller

12p

1601cc to 2000cc

14p

Bigger than 2000cc

17p

Employee vehicles: mileage payments for business travel

Type of vehicle

Rate per business mile 2014-15 For tax purposes: 45p for the first 10,000 business miles in a tax year, then 25p for each subsequent mile

Cycle

20p for both tax and NICs purposes and for all business miles

2014 / 2015

For NICs purposes: 45p for all business miles 24p for both tax and NICs purposes and for all business miles

BUDGET

Car Motorcycle

www.msrgroup.org.uk

Tax Data 2014/2015  

MSR Group Accounting & Business Services

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