Beach Accountants - The Stronghold of Your Business Pen and line graphy
Home | Services | FAQ | About | Resources | Contact
Sole Traders | Partnerships | Limited Companies | Start Ups | Training | Payroll | VAT

Resources from Beach Accountants

Useful links

Income Tax

Rates

 

2017-2018
2016-2017
 
Basic rate of 20% on income up to
UK
£ 33,500
£ 32,000
Scotland
£ 31,500
£ 32,000
Higher rate of 40% on income over
UK
£ 33,500
£ 32,000
Scotland
£ 31,500
£ 32,000
 
£ 150,000
£ 150,000
Additional rate of 45% on income over
£ 150,000
£ 150,000
Starting rate of 0% on savings income up to
£ 5,000
£ 5,000
Savings allowance at 0% basic rate taxpayers
£ 1,000
£ 1,000
Higher rate taxpayers
£ 500
£ 500
Additional rate taxpayers
0
0
Dividend allowance at 0% tax – all individuals
£ 5,000
£ 5,000
Rate on dividend income    
Basic rate taxpayers
7.5%
7.5%
Higher rate taxpayers
32.5%
32.5%
Additional rate taxpayers
38.1%
38.1%

Trusts:

   
Standard rate band gererally
£1,000
£ £1,000
Rate applicable to trusts: dividends
38.1%
38.1%
Rate applicable to trusts: other income
45.0%
45.0%

Child benefit charge

   
1% of benefit for every £100 of income between £50,000 and £60,000    
Main Personal Allowance and Reliefs
2017-2018
2016-2017
Personal (basic)
£ 11,500
£ 11,000
Personal allowance reduced by £1 for every £2 of income over                                
£ 100,000
£ 100,000

Transferable tax allowance for married couples/civil Partners

£ 1,500
N/A
Married/civil partners (maximum) at 10%†
£ 8,445
£ 8,355
Married/civil partners (minimum)
£ 3,260
£ 3,220
Blind person’s allowance
£ 2,320
£ 2,290
Rent-a-room tax-free income   
£ 7,500
£ 7,500

(Where at least one spouse/civil partner was born before 6/4/1935.

Non-domicile remittance basis charge after UK residence in at least :
2017-2018
2016-2017
7 of the last 9 tax years
£ 30,000
£ 30,000
12 of the last 14 tax years
£ 60,000
£ 60,000

17 of the last 20 tax years

£ 1,500
£ 90,000

Registered Pensions

 
2017-2018
2016-2017
Lifetime allowance
£ 1,000,000
£ 1,000,000
Annual allowance
£ 40,000
£ 40,000

Money purchase annual allowance

£ 4,000
£ 10,000

Annual allowance charge on excess

£ 1,500
£ 90,000
Max pension commencement lump sum 25% of pension benefit value    
Lifetime allowance charge if excess drawn as cash 55% / income 25%    

National Insurance Contributions

Class 1
Employee
Employer
NIC rate
12.0%
13.8%
No NICs on the first – Age under 21/25 for apprentices
£ 157 pw
£ 866 pw
Age 21 / 25 & over
£ 157 pw
£ 157 pw
NIC’s rate charged up to
£ 866 pw
No Limit
2% NIC on earnings over
£ 866 pw
N/A
Certain married women               
5.85%
13.8%

Employment Allowance

   

Per business – not available if a director is the sole employee.

   
     
Limits and Thresholds
Weekly
Monthly
Annual
Lower earnings limit
£ 113
£ 490
£ 5,876
Secondry earnings
£ 157
£ 680
£ 8,164
Primary earnings
£ 157
£ 680
£8,164

Upper earnings limit
(under 21 or apprentice under 25)

£ 866
£ 3,750
£45,000
Class 1A Employer    
On car and fuel benefits and most other taxable benefits
13.8%
Self-Employed    
Class 2 Flat Rate
£ 2.85 pw
£ 148.20pa
Small profits threshold   
£6,025.00pa
Class 4 On profits
£8,164-£45,000 pa
9%
over
£45,000pa
2%
Class 3 Voluntary Flat Rate
£ 14.25 pw
£ 741.00 pa

State Pension

 
Weekly
Annual
Single tier*
£ 159.55
£ 8,296.60
Basic – Single Person + 
£122.30
£ 6.359.60
Basic Spouse / civil partner +      
£  73.30
£ 3,811.60

*  State pension age reached after 5/4/16

   

+ State pension age reached before 6/4/16

   

Pension Credit – standard minimum guarantee

   
Single
£ 159.35
£ 8,286.20
Couple 
£ 243.25
£ 12,649.00

Property Transaction Taxes

   
 

Residential property value (on slices of value) UK (Excl Scotland) :

% Scotland : Land and Buildings %

 

     

Stamp Duty Land Tax (SDLT)

  Transaction Tax (LBTT)  

Up to £125,000 

0
Up to £145,000 
0
£125,001 - £250,000
2
£145,001 - £250,000
2
£250,001 - £925,000
5
£250,001 - £325,000
5

£925,001 - £1,500,000    

10
£325,001 - £750,000
10
 

Over £1,500,000

12
Over £750,000
12

Second properties over £40,000 – add 3% to relevant SDLT / LBTT rate

UK properties bought by companies etc over £500,000 – 15% on total value

   
 

Commercial property value (on slices of value) UK (excl Scotland) : SDLT

% Scotland LBTT %

 

     

Up to £150,000 

0
Up to £150,000 
0
£150,001 - £250,000
2
£150,001 - £350,000
3
Over £250,000  
5
Over £350,000  
4.5

Stamp Duty and SDRT  Stocks and marketable securities          0.5%

No charge to stamp duty unless the duty exceeds £5.

Tax Incentivised Investment

 
2017-2018
2016-2017
Individual Savings Account (ISA)
£ 20,000
£ 15,240
Junior ISA and Child Trust Fund
£  4,128
£  4,080
Lifetime ISA
£  4,000
N/A
Help to Buy ISA
£1,000 initial and £200  per month
Venture Capital Trust 9CAT) at 30%
£ 200,000
£ 200,000
Enterprise Investment Scheme (EIS) at 30%
£ 1,000,000
£ 1,000,000
EIS eligible for CGT reinvestment deferral relief
No Limit
No Limit
Seed EIS (SEIS) at 50%
£ 100,000
£ 100,000
SEIS CGT reinvestment relief
50%
50%

Capital Gains Tax

 
2017-2018
2016-2017

Tax Rates - Individuals

   
Up to basic rate limit
10%
10%
Above basic rate limit
20%
20%

Tax Rates - Trusts and Estates

20%
20%

Surcharge for residential property and carried interest

8%
8%

Exemptions

   
Individuals, estates, etc
£ 11,300
£ 11,100
Trusts generally
£ 5,650
£ 5,550
Chattels proceeds (restricted to 5/3 proceeds exceeding limit)
£ 6,000
£ 6,000
Entrepreneur’s Relief lifetime limit of gains 10%               
£ 10,000,000
£10,000,000

For trading businesses and companies (minimum 5% employee/officer Shareholding) held for at least one year

Inheritance Tax

 
2017-2018
2016-2017
Nil-rate band*  
£ 325,000
£ 325,000
Residence nil-rate band*
£ 100,000+
N/A
Rate of tax on excess
40%
40%
Rate if at least 10% of net estate left to charity  
36%
36%
Lifetime transfers to and from certain trusts      
20%
20%
Overseas domiciled spouse/civil partner exemption
£ 325,000
£ 325,000

100% relief : businesses, unlisted AIM companies, certain farmland / buildings
50% relief : certain other business assets eg farmland let before 1/9/95
Annual exempt gifts of : £3,000 per donor   £250 per done
* Up to 100% of the unused proportion of a deceased spouse’s / civil partner’s
Nil-rate band can be claimed on the survivor’s death
+ Subject to 50% taper for estates above £2,000,000

Tax charge on gifts within 7 years of death

 
Years before death 0-3 3-4 4-5 5-6 6-7
% of death tax charge 100 80 60 40 20

Corporation Tax

Effective Rate to Profits Profits  
Diverted Profits
Year to 31/3/18
19%
25%
Year to 31/3/17
20%
25%

Corporation tax at 32.5% on outstanding loans to participators

   

Value Added Tax

     
Standard rate  
20%
Reduced rate, eg: on domestic fuel  
5%
Registration level from 1/4/2017  
£ 85,000
Deregistration level from 1/4/2017  
£ 83,000
Flat rate scheme turnover limit  
£ 150,000
Cash and annual accounting schemes turnover limit  
£1,350,000

Car Benefits

Taxable amount based on a car’s list price when new.
Charge varies according to Co2 emissions in grams per kilometre

CO2 emissions Appropriate percentage  
(g/km) Petrol
%
Diesel
%
0 - 50 9 12
51 - 75 13 16
76 - 94 17 20
95 - 99 18 21
100 - 104 19 22
105 - 109 20 23
110 - 114 21 24
115 - 119 22 25
120 - 124 23 26
125 - 129 24 27
130 - 134 25 28
135 - 139 26 29
140 - 144 27 30
145 - 149 28 31
150 - 154 29 32
155 - 159 30 33
160 - 164 31 34
165 - 169 32 35
170 - 174 33 36
175 - 179 34 37
180 - 184 35 37
185 - 189 36 37
190  & over 37 37
Fuel Benefit – taxable amount for private use
Multiply the Co2 percentage charge used for car benefit by         £22,600 

Vans for Private Use

     
Zero emission : chargeable amount
£ 646
£ 634
Other vans : chargeable amount              
£ 3,230
£3,170
Fuel: chargeable amount
£ 610
£ 598

Tax-Free Mileage Allowance - Own Vehicle

   
Cars Up to 10,000 business miles :
45p per mile
Over 10,000 business miles :  
25p per mile
Qualifying passenger
5p per mile
Motorcycles
24p per business mile
Bicycles :
20p per business mile

Main Capital and Other Allowances

   

Plant & machinery 100% annual investment allowance (1st year )

£200,000
Enterprise zone plant and machinery     
100%
(Max £125m per investment project)
18%
Patent rights and know-how (annual reducing balance)
25%

Certain long-life assets and integral features of buildings (annual reducing balance)

8%
Energy and water-efficient equipment
100%
Electric vans      
100%

Motor Cars

     
Co2 emissions of g/km  75 or less*
76 – 130
131 or more
Capital allowance 100% first year
18% pa+

8% pa+

*New cars only +  Reducing balance    

Research and Development

   
Capital expenditure
100%
Revenue expenditure relief – small / medium sized companies
230%
Research and development expenditure credit – large companies
11%

Social Security and Other Useful Rates

Weekly rates unless stated otherwise.  Certain benefits will be affected by the phasing in of Universal Credit These are marked*

   

Attendance Allowance

 
Higher Rate
£ 83.10
Lower rate
£ 55.65

Carer’s Allowance

£ 62.70

Employment and Support Allowance *

 

13 week assessment phase

 
Aged under 25 : up to      £ 57.90 
Aged 25 or over : up to £ 73.10

From week 14 after Work Capability Assessment if eligible

 
In Work Related Activity Group up to £ 102.15
In Support Group up to £ 109.65

Statutory Pay Rates 

Average weekly pay £113 or over

Statutory Sick Pay (SSP)

standard rate £89.35

Statutory Maternity Pay (SMP/Statutory Adoption Pay (SAP)

 
First 6 weeks 90% of average weekly pay
Next 33 weeks

90% of average weekly pay subject
To a maximum of £ 140.98

Statutory Paternity Pay (SPP)

 
90% of average pay subject to a maximum of £ 140.98

Shared Parental Pay (ShPP) upto 37 weeks

 
90% of average pay subject to a maximum of     £ 140.98

Job Seeker’s Allowance *

 
   Aged under 25  -   £ 57.90
   Aged 25 or over  £ 73.10

National Minimum/National Living Wage

1/4/2017 – 31/3/2018 per hour
   Aged 25 and over £ 7.50
   Aged 21 – 24      £ 7.05
   Aged 18 – 20 £ 5.60
   Aged under 18 £ 4.05
   Apprentice £ 3.50

Main Due Dates for Tax Payments

Income Tax NIC and Capital  Gains Tax – Self Assessment
31 Jan in tax year Normally 50% of previous years income tax
Following 31 July (less tax deducted at source) and class 4 NIC
Following 31 Jan

Balance of income tax and class 4 NIC
And all CGT and class 2 NIC

Inheritance Tax

 
On death : normally 6 months after month of death
Lifetime transfer 6 April – 30 Sept 30 April in following year
Lifetime transfer 1 Oct – 5 Apr 6 Months after month of transfer

Corporation Tax 

 
Self-assessment : 9 months and one day after end of accounting period
Payable by instalments where profits are £1.5m or over Normally payable in 7th, 10th, 13th and 16th months after start of accounting period
Growing companies :

No instalments where profits are £10m or less and the company was not a large company for the previous year

 

For further information or advice contact Beach Chartered Certified Accountants

© 2017 Beach Accountants. Website Design: E-Cat Partners