Latest News
Second list of deliberate tax defaulters published15/05/2013 - More...
HMRC have published its second list of deliberate tax defaulters. The list includes 15 individuals, businesses and companies and includes the amounts of tax on which penalties are
Fraudulent emails from 'HMRC'
15/05/2013 - More...
Taxpayers are reminded that the problem of fraudulent emails continues. The emails are part of a 'phishing' exercise that use bogus e-mails and websites to trick taxpayers into
Renewing tax credit claims
15/05/2013 - More...
Families and individuals that receive tax credits should ensure that they renew their tax credit claims by 31 July 2013. Claimants who do not renew on time may have their payments
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Rates & Allowances
| Income Tax Allowances | 2012-13 (£) |
2011-12 (£) |
| Personal allowance (under 65) (1) | 8,105 |
7,475 |
| Income limit for personal allowance (1) |
100,000 | 100,000 |
| Personal allowance for people aged 65-74 (1)(2) |
10,500 | 9,940 |
| Personal allowance for people aged 75 and over (1)(2) | 10,660 | 10,090 |
| Married couple's allowance - aged 75 and over (2) (3) | 7,705 | 7,295 |
| Income limit for age-related allowances | 25,400 | 24,000 |
| Minimum amount of married couple's allowance | 2,960 | 2,800 |
| Blind person's allowance | 2,100 | 1,980 |
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(1) - The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000. |
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(2) - These allowances reduce by £1 for every £2 of inome above the income limit for age related allowances but will never be less than the basic personal allowance or minimum amount of married couple's allowance. |
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(3) - Available to people born before 6 April 1935. Tax relief for the married couple's allowance is given at the rate of 10%. |
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| Tax Bands | 2012-13 (£) | 2011-12 (£) |
| Starting rate for savings 10% | 0 - 2,710 | 0 - 2,560 |
| Basic rate 20% | 0 - 34,370 | 0 - 35,000 |
| Higher rate 40% | 34,371 - 150,000 | 35,001 - 150,000 |
| Additional rate 50% (45% from April 2013) | over 150,000 | over 150,000 |
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If non-savings income is above the starting rate limit the 10% rate for savings will not apply. |
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Dividends are taxed at 10%, 32.5% or 42.5% as the top slice of total income. |
| National Insurance - Rates and Allowances | 2012-13 | 2011-12 |
| Lower weekly earnings limit, primary Class 1 | £107 | £102 |
| Upper weekly earnings limit, primary Class 1 | £817 | £817 |
| Upper weekly accruals point | £770 | £770 |
| Primary weekly earnings threshold | £146 | £139 |
| Secondary weekly earnings threshold | £144 | £136 |
| Employees' primary Class 1 rate between primary earnings threshold and upper earnings limit | 12% | 12% |
| Employees' primary Class 1 rate above upper earnings limit | 2% | 2% |
| Employees' contracted-out rebate between primary earnings threshold and upper earnings limit | 1.40% | 1.60% |
| Married women's reduced rate between primary earnings threshold and upper earnings limit | 5.85% | 5.85% |
| Married women's rate above upper earnings limit | 2% | 2% |
| Employers' secondary Class 1 rate above secondary earnings threshold | 13.80% | 13.80% |
| Employers' contracted-out rebate, final salary-related schemes | 3.40% | 3.70% |
|
Employers' contracted-out rebate, money purchase schemes |
Abolished from 6 April 2012 |
1.40% |
| Class 2 weekly rate | £2.65 | £2.50 |
| Class 2 small earnings exception | £5,595 per year | £5,315 per year |
| Special Class 2 weekly rate for share fishermen | £3.30 | £3.15 |
| Special Class 2 weekly rate for volunteer development workers | £5.35 | £5.10 |
| Class 3 voluntary weekly rate | £13.25 | £12.60 |
| Class 4 lower profits limit | £7,605 per year | £7,225 per year |
| Class 4 upper profits limit | £42,475 per year | £42,475 per year |
| Class 4 rate between lower profits limit and upper profits limit | 9% | 9% |
| Class 4 rate above upper profits limit | 2% | 2% |
| Capital Gains Tax: Individuals and Trustees | 2012-13 (£) | 2011-12 (£) |
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Annual exempt amount Individuals Trusts |
10,600 5,300 |
10,600 5,300 |
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Rates Standard rate taxpayers Higher rate taxpayers / Trustees |
18% 28% |
18% 28% |
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Limit for gains subject to entrepreneurs' relief (2) Entrepreneurs' rate |
10,000,000 10% |
10,000,000 10% |
| Inheritance Tax | 2012-13 | 2011-12 |
| Nil rate band for individuals (1) | £325.000 | £325.000 |
| Thereafter - lifetime gifts (2) | 20% | 20% |
| - lower rate on death (3) | 36% | n/a |
| - on death | 40% | 40% |
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(1) Unused nil rate band can be used by surviving spouse or civil partner |
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(2) Increased to 40%, subject to tapering relief, on gifts made between 3 and 7 years pre death. Certain lifetime gifts are exempt. Special rules for Business property. |
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(3) From 6th April 2012, a reduced rate of inheritance tax of 36% applies where 10% or more of the net estate is left to charity. |
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Corporation Tax |
FY 2012 | FY2011 |
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Main rate on Profits above |
24% £1.5m |
26% £1.5m
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Small companies rate on Profits between |
20% £0 - £300k |
20% £0 - £300k |
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Small/large marginal band Fraction (effective rate) |
£300,001 - £1.5m 1/100th (25%) |
£300,001 - £1.5m 3/200th (27.5%) |
| VAT | |
| Standard rate | 20% |
| Reduced rate | 5% |
| Registration level from 1.4.12 | £77,000 turnover per annum |
| Deregistration level from 1.4.12 | £75,000 turnover per annum |
Disclaimer
In preparing and maintaining this section of our website every effort has been made to ensure the content is up to date and accurate. However, the law and regulations change continually and unintentional errors can occur and the information may be neither up to date nor accurate. We make no representation or warranty (including liability towards third parties), express or implied, as to the accuracy, reliability or completeness of the information on the website. Please don’t act directly on anything you read - contact us first for advice on how it may affect your individual circumstances.
