Tax Facts 2014/15
Personal allowances 2014/15 2013/14 Personal allowance 10,000 9,440 Married couple s/civil partnership s (min)* 3,140 3,040 Child tax credit** 545 545 Born between 6/4/38 and 5/4/48 Personal allowance 10,500 10,500 Born before 6/4/38 Personal allowance 10,660 10,660 Married couple s/civil partnership s* 8,165 7,915 Born before 6/4/48 Reduced if net income exceeds 27,000 26,100 Reduced by 50% of income over 100,000. *Relief restricted to 10%. Only available if at least one claimant born before 6 April 1935. **Expected to be replaced by Universal Credit by the end of 2017. Income Tax rates 2014/15 On first Next Next Above 2,880 28,985 118,135 150,000 Earnings, pensions and property 20% 20% 40% 45% Savings *10% 20% 40% 45% Dividends 10% 10% 32.5% 37.5% 2013/14 On first Next Next Above 2,790 29,220 117,990 150,000 Earnings, pensions and property 20% 20% 40% 45% Savings *10% 20% 40% 45% Dividends 10% 10% 32.5% 37.5% *Not available if taxable non-savings income exceeds starting rate band of 2,880 in 2014/15 ( 2,790 in 2013/14). Child benefit charge 1% of benefit for every 100 of income for the tax year between 50,000 60,000. Non-domicile remittance basis charge Charge for adult non-uk domiciliary after UK residence in: At least 7 of the previous 9 tax years 30,000 At least 12 of the previous 14 tax years 50,000 Employee incentives Enterprise Management Scheme (EMI) To help eligible smaller higher risk companies recruit and retain staff needed to help them achieve their growth potential. Key features No formal approval required. Open to any number of employees. Subject to overall limit of 3 million worth of shares. The maximum value of options per employee is 250,000. Please contact us for further details on employee share and share option schemes.
Taxation of dividends 2014/15 dividends are taxed on the gross amount at the rate of: 10% for lower and basic rate taxpayers. 32.5% for higher rate taxpayers, above the basic rate band. 37.5% for additional rate taxpayers, above the higher rate band and for discretionary and accumulation & maintenance trusts. Capital Gains Tax Exemptions 2014/15 2013/14 Individuals estates, etc 11,000 10,900 Trusts generally 5,500 5,450 Chattels exemptions: proceeds up to 6,000 6,000 Max. chargeable gains 5 / 3 rds of excess proceeds over limit Tax rates Individuals Up to basic rate limit 18% 18% Above basic rate limit 28% 28% Tax rates Trusts and Estates 28% 28% Entrepreneurs relief 2014/15 2013/14 Gains taxed at 10% 10% Lifetime limit 10,000,000 10,000,000 For trading businesses and companies (minimum 5% employee/director shareholding) held for at least one year. Inheritance Tax Taxable estate & gifts 2014/15 2013/14 Nil rate band 325,000 325,000 Rate of tax on excess 40% 40% Lifetime transfers to and from certain trusts 20% 20% 36% where at least 10% of net estate left to charity. Main exemptions Annual gifts per donor 3,000. Small gifts per donee 250. Gifts within 7 years of death Years 0 3 3 4 4 5 5 6 6 7 % of death rate charge 100 80 60 40 20 Nil rate band transfers Up to 100% of the unused proportion of a deceased spouse s/civil partner s nil-rate band can be claimed on the surviving spouse s/civil partner s death. Value Added Tax Standard rate 20% Reduced rate, e.g. on domestic fuel 5% Registration level from 1/4/14 81,000 Deregistration level from 1/4/14 79,000 Flat rate scheme turnover limit 150,000 Cash and annual accounting schemes turnover limit 1,350,000 Please see our VAT Facts card for a more detailed explanation.
Tax-efficient investments 2014/15 Individual savings accounts To 30/6/14 ISA (max 5,940 cash) 11,880 Junior ISA/Child trust fund 3,840 From 1/7/14 New ISA (revised limit) 15,000 Junior ISA/Child trust fund 4,000 Enterprise Investment Scheme, Seed Enterprise Investment Scheme and Venture Capital Trusts EIS SEIS VCT Income tax relief 30% 50% 30% Maximum investment 1,000,000 100,000 200,000 CGT reinvestment relief Unlimited 50% N/A Certain types of asset-backed investments are excluded. Other points to note: EIS Carry back to 2013/14 subject to the maximum investment limit. Income tax relief holding period is 3 years. No maximum investment where only CGT reinvestment relief is claimed. VCT Shareholders are exempt from tax on dividends. Disposals are exempt from capital gains tax. Income tax relief holding period is 5 years. National Insurance Contributions 2014/15 Class I Employed Employees Contracted in Contracted out First 111.00 per week nil nil Next 42.00 per week *0% *1.4% rebate Next 617.00 per week 12% 10.6% Next 35.00 per week 12% 12% Above 805.00 per week 2% 2% Employers First 111.00 per week nil nil Next 42.00 per week 0% 3.4% rebate Next 617.00 per week 13.8% 10.4% Above 770.00 per week 13.8% 13.8% * Treated as paid Class I NIC. Employment allowance per business Offset against employer s Class 1 NICs 2,000 Class IA Employers on benefits in kind 13.8%. Class IB Employers on PAYE settlement agreements 13.8%. Class II Self-employed 2.75 per week. Exemption available if net earnings below 5,885. Class III Voluntary rate 13.90 per week. Class IV Self-employed 9% of net profits between 7,956 and 41,865 plus 2% of profits above 41,865.
Stamp Duty Land Tax (based on consideration) Stocks and marketable securities 0.5% No charge to stamp duty unless the duty exceeds 5. Stamp Duty Land Tax based on consideration Residential 125,000 or less nil Over 125,000 up to 250,000 1% Over 250,000 up to 500,000 3% Over 500,000 up to 1,000,000 4%* Over 1,000,000 up to 2,000,000 5%* Over 2,000,000 7%* *15% if purchased by certain companies and other non-natural entities. Commercial 150,000 or less nil Over 150,000 up to 250,000 1% Over 250,000 up to 500,000 3% Over 500,000 4% Pensions 2014/15 2013/14 Lifetime allowance 1,250,000* 1,500,000* Annual allowance 40,000 50,000 Lifetime allowance charge 55% if excess drawn as cash 25% if excess drawn as income Annual allowance charge 20% 45% 20% 45% (on excess) Maximum relievable personal contribution, capped by the annual allowance and: 100% of relevant UK earnings or 3,600 if greater. Maximum pension commencement lump sum* 25% of pension benefit value *Subject to transitional protection for excess amount. Basic State Pensions 2014/15 2013/14 Single person per week 113.10 110.15 Spouse s/civil partner s per week* 67.80 66.00 *For pensions which started before 6/4/10. Corporation Tax Profits Effective Rate Effective Rate to 31/3/15 to 31/3/14 0 300,000 20% 20% 300,001 1,500,000 21.25% 23.75% 1,500,001 and over 21% 23% Advisory fuel rates company vehicles From 1/3/14 pence per mile Engine size Petrol Diesel LPG 1,400cc or less 14 12 9 1,401cc to 1,600cc 16 12 11 1,601cc to 2,000cc 16 14 11 Over 2,000cc 24 17 17 These rates are reviewed periodically. Hybrid cars are treated as either petrol or diesel cars for this purpose.
Tax-free mileage rates own vehicle 2014/15 Cars First 10,000 business miles: 45p per mile thereafter 10,000 business miles: 25p per mile Motorcycles 24p per business mile Bicycles 20p per business mile Car benefit 2014/15 Percentage of list price* CO 2 Emissions Petrol engines % Diesel engines % 75 or less 5 8 76 94 11 14 95 99 12 15 100 104 13 16 105 109 14 17 110 114 15 18 115 119 16 19 120 124 17 20 125 129 18 21 130 134 19 22 135 139 20 23 140 144 21 24 145 149 22 25 150 154 23 26 155 159 24 27 160 164 25 28 165 169 26 29 170 174 27 30 175 179 28 31 180 184 29 32 185 189 30 33 190 194 31 34 195 199 32 35 200 204 33 35 205 209 34 35 210 & over 35 35 *List price includes extras & delivery. To check the emissions figures for a vehicle see http://carfueldata.direct.gov.uk/ There is no taxable benefit for zero-emission cars, including electric only. Car fuel benefit 2014/15 Multiply CO2% used for car benefit by 21,700. Vans for private use 2014/15 2013/14 Chargeable amount 3,090 3,000 Fuel 581 564 No charge if provided for business travel (including journeys between home and work) and private use is insignificant. No charge on zero emission vans, including electric only.
Financial calendar 2014/15 Every month 1 Annual corporation tax due for companies (other than large companies) with year ending nine months and a day previously, e.g. tax due 1 July 2014 for year ending 30 September 2013. 14 Quarterly instalment of corporation tax due for large companies (month depends on accounting year end). 19 Pay PAYE/NIC and CIS deductions for period ending 5th of the month if not paying electronically. Submit CIS contractors monthly return. 22 PAYE/NIC and CIS deductions paid electronically should have cleared into HMRC bank account. Month end Submit CT600 for year ending 12 months previously. Last day to amend CT600 for year ending 24 months previously. File accounts with Companies House for private companies with year ending nine months previously and for public companies with year ending six months previously. If the due date for payment falls on a weekend or bank holiday, payment must be made by the previous working day. March 2014 31 Last few days to use any CGT and IHT annual allowances and exemptions and to invest in an ISA in 2013/14. April 2014 1 Main rate of corporation tax falls to 21%. 5 End of real time information (RTI) reporting relaxation for employers with between 10 and 49 employees. Last day to register for Fixed Protection 2014 to maintain pension lifetime allowance at 1.5m. 6 First day of the 2014/15 tax year. Start of RTI automatic monthly late submission penalties. Pension annual and lifetime allowances fall to 40,000 and 1.25 million. CGT main residence exempt final period reduced from 36 to 18 months. Last day for health professionals who registered in the Health and Wellbeing Tax Plan before 1 January 2014 to disclose and pay the tax owed. Start of NIC 2,000 Employment Allowance. 19 Last day for employers to report final payments to employees (EPS) for 2013/14 under RTI. 20 Interest accrues on employers unpaid PAYE and NIC for 2013/14 (23rd if paying electronically. 30 IHT due on lifetime transfers between 6 April and 30 September 2013. (IHT on other transfers payable six months after the end of the month in which the transfer or death occurred.) May 2014 1 Start of daily 10 penalty where the 2012/13 return has not been filed (charged for up to 90 days). 19 Deadline to submit RTI earlier year update for 2013/14 and avoid a penalty if the final EPS for any employee was not made by 19 April. 31 Last day to issue 2013/14 P60s to employees. July 2014 5 Last date to agree a 2013/14 PAYE Settlement Agreement (PSA) with HMRC. 6 Deadline for employers to make returns of expenses and benefits (forms P11D, P9D and P11D(b)) for 2013/14 to HMRC and provide copies to employees.
10 Deadline to submit employee share scheme annual returns (including Form 42). 31 Confirm tax credit claims for 2013/14 and renewal for 2014/15. Due date for second self-assessment payment on account for 2013/14. August 2014 1 Penalty of 5% of the tax due or 300, whichever is the greater, where the 2012/13 return has not been filed. 3 Second 5% penalty imposed on 2012/13 tax still unpaid on 2 August. October 2014 1 National minimum wage rates go up ( 6.50 per hour for 21 & over). 31 Deadline for 2013/14 self-assessment return if filed on paper. December 2014 30 Last day to submit 2013/14 tax return online to have unpaid tax of under 3,000 collected through the 2015/16 PAYE code. January 2015 31 Submit 2013/14 self-assessment return online. Pay balance of 2013/14 income tax and CGT plus first payment on account for 2014/15. February 2015 1 Initial 100 penalty imposed where the 2013/14 return has not been filed or has been filed on paper after 31 October 2014. Further 300 penalty or 5% of the tax due if higher where the 2012/13 return has not yet been filed. 3 Third 5% penalty imposed on tax still unpaid for 2012/13. March 2015 2 Last day to pay 2013/14 tax to avoid automatic 5% penalty. 31 Last few days to use any CGT and IHT annual allowances and exemptions and to invest in an ISA in 2014/15. This Tax Card has been prepared from the Chancellor s Budget Speech and official Government press releases. Budget proposals are subject to amendment during the course of the Finance Bill through parliament. Copyright 19 March 2014. You should consult your usual contact partner before making decisions on the basis of information given herein. City Devonshire House, 60 Goswell Road, London EC1M 7AD Telephone 020 7566 4000 Heathrow Middlesex House, 800 Uxbridge Road, Hayes, Middlesex UB4 0RS Telephone 020 8848 5500 Redhill Surrey House, 36-44 High Street, Redhill, Surrey RH1 1RH Telephone 01737 779000 Romford Orbital House, 20 Eastern Road, Romford, Essex RM1 3PJ Telephone 01708 759759 St Albans 105 St. Peter s Street, St Albans, Herts AL1 3EJ Telephone 01727 896000 West End 141 Wardour Street, London W1F 0UT Telephone 020 7304 4646 www.kingstonsmith.co.uk