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Tax Rates and Allowances
Below you will find this year's and last year's tax allowances. Please contact us to make sure that you have got the correct information.
| > | 2013/14 | 2012/13 | |
| Income Tax | |||
| Personal allowance | Under 65 | £9,440 | £8,105 |
| 65 to 74 | £10,500 | £10,500 | |
| 75 and over | £10,660 | £10,660 | |
| Blind person's allowance | £2,160 | £2,100 | |
| Tax Rates | |||
| Basic rate band | £32,010 | £34,370 | |
| Basic tax rate | 20% | 20% | |
| Tax on UK dividends within starting and basic rate bands | 10% | 10% | |
| Higher rate band | £32,010- £150,000 | £34,371- £150,000 | |
| Higher tax rate | 40% | 40% | |
| Higher rate dividend | 32.5% | 32.5% | |
| Additional rate band | Over £150,000 | Over £150,000 | |
| Additional rate tax | 45% | 50% | |
| Additional rate dividend | 37.5% | 42.5% |
| Corporation Tax | ||
| Corporation tax rates and bands are as follows: | ||
| Financial year to | 31 March 2014 | 31 March 2013 |
| Taxable Profits | ||
| First £300,000 | 20% | 20% |
| Next £1,200,000 | 23.75% | 25% |
| On profits over £1,500,000 | 23% | 24% |
| Marginal relief fraction | 3/400 | 1/100 |
| Corporation Tax Payable | ||
| For small and medium sized companies | ||
| - Nine months and one day after the end of the accounting period | ||
| The Annual Investment Allowance (AIA) offers tax relief at 100% on qualifying expenditure in the year of purchase. The maximum you can deduct from your taxable profits is £250,000 (from 1 January 2013). This limit is adjusted for short or long periods, and also for periods that span the operative dates and rates of allowance. | ||
| Mileage Allowances | ||
| For employees using their own transport | ||
| The approves maximum tax and national insurance free mileage allowances for employees using their own transport for business are as follows: | ||
| First 10,000 miles | Over 10,000 miles | |
| Car | 45p | 25p |
| Motorcycle | 24p | 24p |
| Bicycle | 20p | 20p |
| Income Tax and NICs are due when allowances exceed these rates. Employees can claim tax relief on any shortfall. | ||
| Rates of up to 5p per mile, per passenger, are also tax and NIC free when paid for the carriage of fellow employees on the same business trip. | ||
| Value Added Tax | ||
| From | 1 Apr 2013 | 1 Apr 2012 |
| Standard rate | 20% | 20% |
| Standard rate VAT fraction | 1/6 | 1/6 |
| Reduced rate | 5% | 5% |
| Reduced rate VAT fraction | 1/21 | 1/21 |
| Taxable Turnover Limits | ||
| Registration - last 12 months or next 30 days over | £79,000 | £77,000 |
| Deregistration - next 12 months under | £77,000 | £75,000 |
| Cash accounting scheme - up to | £1,350,000 | £1,350,000 |
| Optional flat rate scheme - up to | £150,000 | £150,000 |
| Annual accounting scheme - up to | £1,350,000 | £1,350,000 |