TAX DATA 2018/19
www.scruttonbland.co.uk
Income Tax
Income tax rates (other than dividend income) 2018-19
2017-18
Band £
Rate % Band £
Rate %
0 - 34,500
20 40 45
0 - 33,500
20 40
34,501 - 150,000
33,501 - 150,000
Over 150,000 45 Scottish taxpayers are subject to different tax rates and bands on non-savings and Over 150,000
non-dividend income. Savings income
2018-19 and 2017-18
Starting rate for savings
0%
Pension Contributions There is no financial limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual’s UK relevant earnings or £3,600 (gross). If total pension input exceeds the annual allowance (£40,000) there may be a tax charge on the excess. The annual allowance may be reduced where adjusted income exceeds £150,000. A £4,000 limit may apply where money purchase pensions are accessed. Maximum age for tax relief 74 Minimum age for taking benefits 55 Lifetime allowance charge – lump sum paid 55% – monies retained 25% on cumulative benefits exceeding £1,030,000* *Subject to transitional protection for excess amount. (Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) 10% of the PA may be transferable between certain spouses where neither pay tax above the basic rate, known as the Marriage allowance. Marriage allowance £1,190 £1,150 Married couple’s allowance (MCA) (relief 10%) £8,695 £8,445 (Either partner born before 6 April 1935.) - min. amount £3,360 £3,260 Reduce MCA by £1 for every £2 of adjusted net income over £28,900 (£28,000). Tax-Free Savings Accounts for 2018-19 ISA subscription limit £20,000; Junior ISA and CTF subscription limit £4,260. Starting rate limit for savings £5,000 Not available if the taxable non-savings income exceeds the starting rate band. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax free. Dividend income 2018-19 and 2017-18 Dividend ordinary rate 7.5% Dividend upper rate 32.5% Dividend additional rate 38.1% The first £2,000 of dividends are tax free (£5,000 for 2017/18). 2018-19 2017-18 Personal allowance (PA) £11,850 £11,500
Company Cars and Vans
Company car benefit is calculated by applying the appropriate percentage (based on the car’s CO 2 emissions – see table below) to the car’s UK list price. CO 2 emissions (g/km) Appropriate % CO 2 emissions (g/km) Appropriate % Petrol Diesel Petrol Diesel 0 - 50 13 17 135 - 139 28 32 51 - 75 16 20 140 - 144 29 33 76 - 94 19 23 145 - 149 30 34 95 - 99 20 24 150 - 154 31 35 100 - 104 21 25 155 - 159 32 36 105 - 109 22 26 160 - 164 33 31 Diesel cars that are registered on or after 1 September 2017 and meet the Euro 6d emissions standard are exempt from the 4% supplement. Company car fuel benefit is charged unless the cost of all fuel for private use is borne by the employee. The taxable benefit is calculated by applying the appropriate % to the car fuel benefit charge multiplier (£23,400). Where VAT is to be reclaimed on fuel for private use, the employer also has to account for output tax based on a flat rate charge derived from the vehicle’s CO 2 emissions. Company van benefit is generally not related to CO 2 emissions but is a set figure of £3,350 with an extra £633 where fuel for private use is provided. Van benefit charge for zero emission vans £1,340. Employees using their own cars for business: Approved mileage allowance payments are 45p per mile for the first 10,000 miles in the tax year and 25p thereafter. Income tax and NICs may be due on higher rates and tax relief may be available on lower rates. 37 110 - 114 115 - 119 120 - 124 125 - 129 130 - 134 23 24 25 26 27 27 28 29 30 165 - 169 170 - 174 175 - 179 180 and above 34 35 36 37
Value Added Tax From
1 April 2018
Standard Rate VAT Fraction Reduced Rate
20%
1/6 5%
Current Turnover Limits
Registration
– last 12 months or next 30 days over
£85,000 from 1 April 2018 £83,000 from 1 April 2018
Deregistration – next 12 months under Annual and Cash Accounting Schemes
£1,350,000 £150,000
Flat Rate Scheme
Stamp Duty Land Tax
Residential rates may be increased by 3% where further residential properties are acquired. Land and buildings in England and N. Ireland Residential £ Rate % Non-residential £ Rate % 0 - 125,000 0 0 - 150,000 0 125,001 - 250,000 2 150,001 - 250,000 2 250,001 - 925,000 5 Over 250,000 5 925,001 - 1,500,000 10 Over 1,500,000 12 From 22 November 2017 a First-Time Buyer exemption may apply on residential purchases up to £300,000 and for the first £300,000 of purchases up to £500,000. Different systems of property taxation apply in Scotland and are introduced in Wales from 1 April 2018.
National Insurance Contributions
Class 1
Employee (primary)
Employer (secondary)
Payable on weekly earnings of: Below £116 (lower earnings limit) £116 - £162 (primary threshold) Up to £162 (secondary threshold)
Nil
– –
*0%
– –
Nil
Above £162
13.8%
£162.01 - £892 (upper earnings limit)
**12%
–
£162.01 - £892 (under 21s and apprentices under 25)
–
0%
Above £892 – *No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects contributory benefit entitlement. **Over state pension age the employee contribution is generally nil. **2%
Employment Allowance Class 1A On relevant benefits
up to £3,000 (per year)
13.8%
Class 2 Self employed
£2.95 per week
Small profits threshold
£6,205 per annum £14.65 per week
Class 3 Voluntary
Class 4 Self employed on annual profits £8,424 - £46,350
*9%
Excess over £46,350 *2% *Exemption applies if state pension age was reached by 6 April 2018.
Selected Rates Basic Retirement Pension – Single person
£125.95 £201.45
– Couple
Pension Credit Standard Minimum Guarantee – Single person
£163.00 £248.80
– Couple
Capital Allowances Plant and Machinery Investment for use in Enterprise Zones, energy saving and environmentally beneficial equipment, new low CO 2 emission cars (up to 50g/km from 1/04/18), natural gas/hydrogen refuelling equipment. First Year allowance (FYA) 100% Annual Investment Allowance (AIA) – on first £200,000 of investment 100% Excludes cars and expenditure already qualifying for 100% FYA Writing Down Allowance on expenditure not qualifying for AIA or FYA: Long-life assets, integral features of buildings, cars over 110g/km from 1/6 April 2018 8% Other plant and machinery 18% Universal Credit (monthly rates) – Standard allowance for a single person (25 or over) is £317.82. The couple’s rate (where one or both are 25 or over) is £498.89. Universal Credit is being phased in gradually. National Living Wage Workers aged 25 and over – £7.83 from 1 April 2018. National Minimum Wage Age 21-24 18-20 16 and 17 Apprentices* From 1 April 2018 £7.38 £5.90 £4.20 £3.70 *Rate applies to apprentices under 19, or 19 and over in the first year of apprenticeship. New State Pension £164.35 Child Benefit is paid at £20.70 (first eligible child) or £13.70 (each subsequent child). Statutory Pay qualification – average weekly earnings (AWE) £116 or over. Sick (SSP) The standard rate is £92.05 per week for up to 28 weeks. Maternity (SMP), Adoption (SAP), Shared Parental (ShPP) and Paternity (SPP) paid at the lower of £145.18 or 90% of AWE apart from first 6 weeks of SMP and SAP which are paid at 90% of AWE. SMP and SAP are payable for up to 39 weeks. ShPP is payable for up to the balance of the untaken SMP period. SPP payable for up to 2 weeks. Jobseeker’s Allowance is paid at £73.10 (single person – 25 or over) or £114.85 (couple – both 18 or over).
Corporation Tax Financial Year to
31 March 2019 31 March 2018
Corporation Tax rate
19%
19%
Capital Gains Tax
2018-19
On chargeable gains
Total taxable income and gains Up to higher rate threshold From higher rate threshold
10% 20%
Inheritance Tax Nil rate band £325,000 A further nil rate band of £125,000 may be available in relation to current or former residences. Nil rate bands of surviving spouses/civil partners may be increased by unused nil rate bands of deceased spouses/civil partners. Rate of tax on balance: Chargeable lifetime transfers 20% 20% Transfers on, or within 7 years of, death 40% 40% subject to a tapered reduction for transfers between 7 and 3 years before death 20% Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest. Entrepreneurs’ relief and Investors’ relief Qualifying gains will be taxed at 10%. Claims may be made on more than one occasion up to a ‘lifetime’ total of £10m per relief. Annual exempt amount – individuals £11,700 and most trustees £5,850. Trust rate 2018-19 £325,000 2017-18
Key Dates & Deadlines
Payment Dates
2018-19
2017-18
Income Tax and Class 4 NICs 1st payment on account 31 January 2nd payment on account 31 July
2019 2019 2020 2020 2020 2019
2018 2018 2019 2019 2019
Balancing payment
31 January 31 January 31 January
Class 2 NICs
Capital Gains Tax
Class 1A NICs 2018 Corporation Tax – 9 months and one day after the end of accounting period (or by quarterly instalments if large company) 2017-18 Returns Filing Deadlines 31 May 2018 Issue P60s to employees 6 July 2018 P11D and P11D(b) – and appropriate copies to employees 31 October 2018 Self Assessment Tax Return (SATR) – paper version 30 December 2018 SATR Online where outstanding tax (subject to cap) to be included in 2019-20 PAYE code 31 January 2019 SATR Online Under Real Time Information most employers must notify HMRC of payments and deductions on or before the time of payment. Some concessions apply. March 2018 edition. Rates subject to change – contact us for latest. For general guidance only, no responsibility is taken for action taken or refrained from in consequence of card contents. 19 July
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