ACCOUNTANTS, TAX CONSULTANTS & ADVISERS TO BUSINESS

121 Trewmount road, Dungannon, BT71 7EF

2012/2013 Tax Rates

Income Tax Rates

2012/132011/12
Band £Rate %Band £Rate %
0 - 2,71010*0 - 2,56010*
0 - 34,37020**2,561 - 35,00020**
34,371 - 150,00040***5,001 - 150,00040***
Over 150,00050****Over 150,00050****
*Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,710 (£2,560).
** Except dividends (10%).
*** Except dividends (32.5%).
**** Except dividends (42.5%).
Other income taxed first, then savings income and finally dividends.

Income Tax Reliefs

   2012/13 2011/12
££
Personal Allowance- under 658,1057,475
- 65 - 74*10,5009,490
- 75 and over*10,66010,090
(reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.)
Married couple's allowance (relief at 10%)- 75 and over*7,7057,295
- min amount2,9602,800
*Age allowance income limit

(Reduce age allowance by £1 for every £2 of adjusted net income over £22,900)
25,40024,000
Blind person's allowance2,1001,980

Tax Credits

   2012/13 2011/12
Working Tax Credit££
Basic Element - max1,9201,920
Childcare element
70% of eligible costs up to £175 per week (£300 if two or more children).
Child Tax Credit (CTC)
Child element
££
per child - max2,6902,555
Family element545545
Reductions in maximum rates
41% of income above £6,420* p.a.
*If only CTC is claimed, the threshold is £15,860 p.a. The family element of CTC tapers immediately after the child element from April 2012. The withdrawal rate is 41%.

Pension Premiums 2012/13 and 2011/12

  • Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings.
  • Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’. Tax relief for large contributions may be spread over several years.
  • Any contributions in excess of £50,000, whether personal or by the employer, may be subject to income tax on the individual.
  • Where the £50,000 limit is not fully used it may be possible to carry the unused amount forward for three years.

Car, Van and Fuel Benefits 2012/13

CO2 emissions (gm/km) (round down to nearest 5gm/km)% of car's list price taxed
up to 9910
10011
10512
11013
11514
12015
12516
13017
13518
14019
14520
15021
15522
16023
16524
17025
17526
18027
18528
19029
19530
20031
20532
21033
21534
220 and above35

Company cars

  • For diesel cars add a 3% supplement but maximum still 35%.
  • A 0% rates applies to cars which cannot emit CO2 when driven.
  • A 5% rates applies to non-electric cars with emissions under 75g/Km.
  • A 10% rate applies to non-electric cars with emissions under 120gm/km.
  • The diesel supplement can apply to 75gm/km cars.
  • For cars registered before 1 January 1998 the charge is based on engine size.
  • The list price includes accessories and is not subject to an upper limit.
  • The list price is reduced for capital contributions made by the employee up to £5,000.
  • Special rules may apply to cars provided for disabled employees.
Car fuel benefit 2012/13
£20,200 x 'appropriate percentage'*
*Percentage used to calculate the taxable benefit of the car for which the fuel is provided.
The Charge does not apply to certain environmentally friendly cars. The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.
Van benefit per vehicle 2012/13
Van benefit £3,000
Fuel benefit £550
The charges do not apply to vans which cannot emit CO2 when driven or if a 'restricted private use condition' is met throughout the year.

Mileage Allowance Payments 2012/13 and 2011/12

Cars and VansRate per mile
Up to 10,000 miles45p
Over 10,000 miles25p
Bicycles20p
Motorcycles24p
These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

Individual Savings Accounts (ISAs)

  2012/13 £2011/12 £
Overall annual investment limit11,28010,680
Comprising - cash up to5,640 max.5,340 max.
- balance in stocks and shares11,280 max.10,680 max.

Corporation Tax

 Year to 31.3.13Year to 31.3.12
Profits band £Rate %Profits band £Rate %
Small profits rate0 - 300,00020*0 - 300,00020*
Marginal (small companies) rate300,001 - 1,500,00025*300,001 - 1,500,00027.5*
Main RateOver 1,500,00024*Over 1,500,00026*
Standard fraction1/100* 3/200*
The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.
*Different rates apply for ring-fenced (broadly oil industry) profit.

Capital Allowances

Plant and machinery – Annual Investment Allowance (AIA)

The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long life assets but not cars, of up to £25,000 p.a (£100,000 for expenditure before 6 April 2012 (1 April 2012 for companies). Special rules apply for accounting periods straddling these dates).

Any costs over the AIA fall into the normal capital allowance pools below. The AIA may need to be shared between certain businesses under common ownership.

Other plant and machinery allowances

The annual rate of allowance is 18% (20%) from 6 April 2012 (1st April 2012 for companies). An 8% (10%) rate applies from 6 April 2012 (1st April for companies) to expenditure incurred on integral features and on long life assets. Special rules apply to accounting periods straddling these dates.

A 100% first year allowance may be available on certain energy efficient plant and cars, including expenditure on new and unused zero emissions goods vehicles on or after 6 April 2010 (1 April 2010 for companies).

Cars

For expenditure incurred on cars on or after 6 April 2009 (1 April 2009 for companies), costs are generally allocated to one of the two plant and machinery pools. Cars with CO2 emissions not exceeding 160gm/km receive an 18% (20%) allowance p.a. Cars with CO2 emissions over 160gm/km receive an 8% (10%) allowance p.a. Special rules apply to accounting periods straddling 6 April 2012 (1 April 2012 for companies).

Value Added Tax

Standard rate20%
Reduced rate5%
Annual Registration Limit - from 1.4.12 ( 1.4.11 - 31.3.12 £73,000 )£77,000
Annual Deregistration Limit - from 1.4.12 (1.4.11 - 31.3.12 £71,000)£75,000

Capital Gains Tax

 2012/13 £2011/12 £
Individuals
Exemption10,60010,600
Standard Rate18%18%
Higher Rate28%28%
Trusts
Exemption5,3005,300
Rate28%18%
Entrepreneurs' Relief
For disposals on or after 6 April 2011 the first £10m (£5m for disposals on or after 23 June 2010 and before 6 April 2011) of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.

Inheritance Tax

  2012/13 and 2011/12
Death rate %Lifetime rate %Chargeable transfers
£'000
NilNil0 - 325*
4020Over 325*
*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.
Reliefs
Annual exemption£3000Marriage- parent£5,000
Small gifts£250- grandparent£2,500
- bride/groom£2,500
- other£1,000
Reduced charge on gifts within seven years of death
Years before death0-33-44-55-66-7
% of death charge10080604020

Stamp duty and stamp duty land tax - Land and buildings (on full consideration paid)

RateResidential property* Non-residential
Disadvantaged areas £Other ££
Nil0 - 150,0000 - 125,0000 - 150,000
1%150,001 - 50,000*125,001 - 50,000*150,001 - 250,000
3%250,001 - 500,000250,001 - 500,000250,001 - 500,000
4%500,001 - 1,000,000500,001 - 1,000,000Over 500,000
5%**1,000,001 - 2,000,0001,000,001 - 2,000,000-
7%***Over 2,000,000***Over 2,000,000***-
* Relief available for first time buyers for transactions with an effective date on or after 25 March 2010 and before 25 March 2012.
** For transactions with an effective date on or after 6 April 2011 over £1m.
*** For transactions with an effective date on or after 22 March 2012.

The rules for disadvantaged areas are withdrawn for transactions with an effective date on or after 6 April 2013.

Shares and securities - rate 0.5%.

National Insurance - Class 1 (employed) contracted in rates 2012/13

Weekly earningsEmployerWeekly earningsEmployee
Up to £146Nil*Up to £144Nil*
£146.01 - £81712%Over £14413.8%
Over £8172%
* Entitlement to contribution-based benefits retained for earnings between £107 and £146 per week.
Class 1A (employers)13.8% on employee taxable benefits
Class 1B (employers)13.8% on PAYE Settlement Agreements
Class 2 (self-employed)flat rate per week £2.65
small earnings exception £5.595 p.a.
Class 3 (voluntary)flat rate per week £13.25
Class 4 (self-employed)9% on profits between £7,605 and £42,475
plus 2% on profits over £42,275

Main Social Security Benefits

Weekly benefit 2012/132011/12
Basic retirement pension- single person£107.45£102.15
- married couple£171.85£163.35
Statutory pay rates - average weekly earnings £107 (£102) or over
Statutory Sick Pay£85.85£81.60
Statutory Maternity Pay
- First six weeks90% of weekly earnings
- Next 33 weeks£135.45*£128.73*
Statutory Paternity Pay - two weeks£135.45*£128.73*
Statutory Adoption Pay - 39 weeks£135.45*£128.73*
* Or 90% of weekly earnings if lower.

Additional Paternity Pay and leave may be available for a child due or adoptions matched on or after 3rd April 2011.

VAT Fuel Scale Charges

Where businesses buy fuel which has some degree of private use, they must account for output VAT on a scale charge. This is based on the CO2 emissions (rounded down to the next multiple of 5). Businesses must use these new VAT fuel scale charges from the start of their next prescribed accounting period beginning on or after 1st May 2011.
CO2 bandVAT fuel scale charge
12 month period £
VAT on 12 month charge £VAT exclusive 12 month charge £
120 or less630.00105.00525.00
125945.00157.50787.50
1301010.00168.33841.67
1351070.00178.33891.67
1401135.00189.17945.83
1451200.00200.001000.00
1501260.00210.001050.00
1551325.00220.831104.17
1601385.00230.831154.17
1651450.00241.671208.33
1701515.00252.501262.50
1751575.00262.501312.50
1801640.00273.331366.67
1851705.00284.171420.83
1901765.00294.171470.83
1951830.00305.001525.00
2001890.00315.001575.00
2051955.00325.831629.17
2102020.00336.671683.33
2152080.00346.671733.33
2202145.00357.501787.50
255 or more2205.00367.501837.50