PART 2: TAX
Lower Rate Band Historical Chart from 1999 to 2008
Basic Rate %
Lower Rate %
Lower Rate Band Limit £
Annual SRR £
Tax Year
1999/2000 COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS 23 10 1,500 195.00 2000/2001 22 10 1,520 182.40 2001/2002 22 10 1,880 225.60 2002/2003 22 10 1,920 230.40 2003/2004 22 10 1,960 235.20 2004/2005 22 10 2,020 242.40 2005/2006 22 10 2,090 250.80 2006/2007 22 10 2,150 258.00 2007/2008 22 10 2,230 267.60 The annual lower rate band allowance (2007/2008) was calculated as follows – Basic Rate 22%
Lower Rate
10%
Lower Rate Band Limit £2,230 Annual Lower Rate Band £2,230 × 12% = £267.60
From the 6th April 2008 Taxable Pay Tables B to D were re-branded to reflect the removal of the 10% band. TAX AVOIDANCE SCHEMES New rules were introduced on 1st August 2004 in an effort to filter out the increasingly elaborate schemes that were being created to assist employers in reducing tax, and particularly employers’ NI contributions. Each scheme promoter is allotted a scheme reference number (SRN) on notification to HMRC. Each employer using the scheme must be given the SRN by the promoter and must complete a form AAG1 for each tax year for which the scheme is expected to provide a tax advantage. The first report must be made by 19th May of the year when the scheme was first used, and by the 19th May for each subsequent year. For further help see https://www.gov.uk/dealing-with-hmrc/ tax-avoidance. No printing, copying or reproduction permitted.
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