Tax Card 2017-18

TAXDATA 2017/18

www.scruttonbland.co.uk

FOR ELECTRONICUSEONLY

Income Tax

2017-18 2016-17 † £33,500 £32,000 *0% *0% 20% 20% **7.5% **7.5% † £33,500 £32,000 40% 40% **32.5% **32.5% £150,000 £150,000 45% 45% **38.1% **38.1%

Basic rate band – income up to Starting rate for savings income

Basic rate

Dividend ordinary rate Higher rate – income over

Higher rate

Dividend upper rate

Additional rate – income over

Additional rate

Dividend additional rate

Starting rate limit (savings income)

*£5,000

*£5,000

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 by £1 for every £2 of adjusted income over £150,000 to a minimum of £10,000. 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 million* Maximum tax-free lump sum 25%* *Subject to transitional protection for excess amount. *Allowances are reduced by £1 for every £2 that adjusted net income exceeds £28,000 (£27,700) to a minimum MCA of £3,260 (£3,220). Where adjusted net income exceeds £100,000, PA is reduced in the same way until it is nil regardless of the individual’s date of birth. Tax Shelters Venture Capital Trust up to £200,000 £200,000 Enterprise Investment Scheme up to £1,000,000 £1,000,000 Seed Enterprise Investment Scheme up to £100,000 £100,000 Social Investment Tax Relief £1,000,000 £1,000,000 Tax-Free Savings Accounts for 2017-18 ISA subscription limit £20,000; Junior ISA and CTF subscription limit £4,128. † For Scottish taxpayers only the limit is £31,500. *If an individual’s taxable non-savings income exceeds starting rate limit, then starting rate limit for savings will not be available for savings income. £1,000 of savings income for basic rate taxpayers (£500 higher rate) may be tax-free. **The first £5,000 of dividends are tax-free. Personal allowance (PA) £11,500 £11,000 Married couple’s allowance (MCA) (relief 10%) Either partner born before 6 April 1935 *£8,445 *£8,355 Transferable Tax Allowance for certain married couples (relief 20%) £1,150 £1,100

FOR ELECTRONICUSEONLY

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 9 12 150 - 154 29 32 51 - 75 13 16 155 - 159 30 33 76 - 94 17 20 160 - 164 31 34 95 - 99 18 21 165 - 169 32 35 100 - 104 19 22 170 - 174 33 36 105 - 109 20 23 175 - 179 34

110 - 114 115 - 119 120 - 124 125 - 129 130 - 134 135 - 139 140 - 144 145 - 149

21 22 23 24 25 26 27 28

24 25 26 27 28 29 30

180 - 184 185 - 189

35 36

37

190 and above

37

31 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 (£22,600). 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 £3,230 with an extra £610 where fuel for private use is provided. Van benefit charge for zero emission vans £646. 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.

Value Added Tax From

1 April 2017

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 2017 £83,000 from 1 April 2017

Deregistration – next year under Annual and Cash Accounting Schemes

£1,350,000 £150,000

Flat Rate Scheme

FOR ELECTRONICUSEONLY

Stamp Duty Land Tax

On the transfer of property in England, Wales and N.Ireland, the Stamp Duty Land Tax is: Residential Value up to £125,000 0% Over £125,000 – £250,000 2% Over £250,000 – £925,000 5% Over £925,000 – £1,500,000 10% Over £1,500,000 12% Non-residential Value up to £150,000 0% Over £150,000 – £250,000 2% Over £250,000 5% The rates apply to the portion of the total value which falls within each band. Additional SDLT of 3% may apply to the purchase of additional residential properties.

National Insurance Contributions

Class 1

Employee (primary)

Employer (secondary)

Payable on weekly earnings of: Below £113 (lower earnings limit) £113 - £157 (primary threshold) Up to £157 (secondary threshold)

Nil

– –

*0%

– –

Nil

Above £157

13.8%

£157.01 - £866 (upper earnings limit)

**12%

£157.01 - £866 (under 21s and apprentices under 25)

0%

Above £866 – *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. Employment Allowance up to £3,000 (per year) Class 1A On relevant benefits 13.8% Class 2 Self employed £2.85 per week Small profits threshold £6,025 per annum Class 3 Voluntary £14.25 per week Class 4 Self employed on annual profits £8,164 - £45,000 *9% Excess over £45,000 *2% *Exemption applies if state pension age was reached by 6 April 2017. **2%

FOR ELECTRONICUSEONLY

Capital Gains Tax

2017-18

On chargeable gains

Total taxable income and gains Up to higher rate threshold From higher rate threshold

10% 20%

Capital Allowances Plant and Machinery Investment for use in Enterprise Zones, energy saving and environmentally beneficial equipment, new low CO 2 emission (up to 75g/km*) cars, 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 130g/km* 8% Other plant and machinery 18% *The emissions figures are reduced to 50 and 110g/km respectively for expenditure incurred on or after 1 April 2018. £325,000 £325,000 For 2017-18, a further nil rate band of £100,000 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. 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. Annual exempt amount – individuals £11,300 and most trustees £5,650. 2017-18 2016-17 Nil rate band Trust rate Inheritance Tax

Corporation Tax Financial Year to

31 March 2018 31 March 2017

Corporation Tax rate

19%

20%

FOR ELECTRONICUSEONLY

Selected Rates Basic Retirement Pension – Single person

£122.30 £195.60 £159.35 £243.25 £159.55

– Couple

Pension Credit Standard Minimum Guarantee – Single person

– Couple

New State Pension

Child Benefit is paid at £20.70 (first eligible child) or £13.70 (each subsequent child). Statutory Pay qualification – average weekly earnings (AWE) £113 or over. Sick (SSP) The standard rate is £89.35 per week for up to 28 weeks.  Maternity (SMP), Adoption (SAP) and Paternity (SPP) paid at the lower of £140.98 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. SPP is 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). 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. The new Universal Credit is being phased in gradually. National Living Wage Workers aged 25 and over – £7.20 from April 2016

and £7.50 from April 2017. National Minimum Wage Age From 1 October 2016 £6.95 21-24

18-20 16 and 17 Apprentices*

£5.55 £5.60

£4.00 £4.05

£3.40

From 1 April 2017 £3.50 *Rate applies to apprentices under 19, or 19 and over in the first year of apprenticeship. £7.05

Key Dates & Deadlines

Payment Dates

2017-18 2016-17

Income Tax and Class 4 NICs 1st payment on account 31 January 2nd payment on account 31 July

2018 2018 2019 2019 2018

2017 2017 2018 2018

Balancing payment

31 January 31 January

Capital Gains Tax

Class 1A NICs 2017 Corporation Tax – 9 months and one day after the end of accounting period (or by quarterly instalments if large company) 2016-17 Returns Filing Deadlines 31 May 2017 Issue P60s to employees 6 July 2017 P11D and P11D(b) – and appropriate copies to employees 31 October 2017 Self Assessment Tax Return (SATR) – paper version 30 December 2017 SATR Online where outstanding tax (subject to cap) to be included in 2018-19 PAYE code 31 January 2018 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. Budget Day 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. FOR ELECTRONICUSEONLY 19 July

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