Tax Rates 2008/09

Basic rate (20% for savings income) 22% on next*

36,000

32,370

*from 2008/09 only applicable on savings income where it is below £2,320.00.

Higher rate taxpayers

32.5%

32.5%

Dividends (rate applicable to trusts - RAT)

32.5%

32.5%

*from 6/4/2008 A&M trusts can only be created by a parent's will, all other trusts will fall under the RPT regime.

Savings

20%

20%

Personal allowance (age 65-74)

9,030

7,550

Married couples/Civil partnerships allowance (age 75+)

6,625

6,365

Age related reliefs abated by £1 for every £2 of income over

21,800

20,900

Family element baby addition

545

545

Disabled child element

2,540

2,440

Basic element

1,800

1,730

Couples & lone parent element

1,770

1,700

30 hour element

735

705

Disabled worker element

2,405

2,310

First income threshold for CTC only

15,575

14,495

Second income threshold

50,000

50,000

Income increase disregarded

25,000

25,000

EIS capital gains re-investment

Unlimited

Unlimited

Gift Aid - net minimum (no maximum)

No minimum

No minimum

Note that if you have not paid sufficient tax to cover the credit claimed by the charitable body, you will be liable to make good the shortfall of that claim by paying additional tax.

£105.01 to £770.00 (£100.01 to £670.00)

11%

12.80%

Taxable amount based on car's list price when new up to £80,000. Charge varies according to CO2 emissions in grams per kilometre.

121-139

15

18

12

13

145-149

17

20

14

15

155-159

19

22

16

17

165-169

21

24

18

19

175-179

23

26

20

21

185-189

25

28

22

23

195-199

27

30

24

25

205-209

29

32

26

27

215-219

31

34

28

29

225-229

33

35

30

31

235 and over

35

35

32

33

1. The exact CO2 figure is rounded down to the lower 5g/km for cars with emission of 125g/km or more.
2. Euro IV diesel cars registered before 1/1/06 are treated as petrol cars. Euro IV diesel cars registered from 2006 are treated as other diesels

All vans regardless of age

£3,000

£3,000

Fuel scale charge

£500

£500

From 2007/08 all vans regardless of age will be taxed through your tax code at a value of £3,000.

Companies - added to income

21%/28%

20%/30%

Interest In Possession Trusts

18%

40%

4,800

4,600

Individual's indexation allowance (ceases 6th April 2008) - maximum rate 104.7%

Companies' indexation allowance continues to be calculated to the month of disposal.

Percentage of gain that is chargeable based on number of years and asset is owned after 5th April 1998.

Chargeable lifetime gifts where in excess of the NRB

20%

20%

250

250

Gift by a grandparent

2,500

2,500

Gifts made to individuals and certain types of trust are potentially exempt, provided the donor survives for seven years. If they die within that period taper relief (below) is available if the gift is taxable.

1

100%

3

80%

5

40%

7

0%

Profits under £300,000 (small companies rate)

21%

20%

Marginal relief fraction

1/40

11/40

Note that for close investment holding companies the 30% rate will apply regardless of profit levels.

Motor cars (new or second hand)

20

25

Long life machinery and plant

10

6

Patent rights and know how

25

25

Research & development

100

100

Cars with low CO2 emissions

100

100

Renovation of business premises (deprived areas only)

100

100

From 1st April 2008 there is a 100% annual investment allowance on the first £50,000 capital expenditure on plant & machinery (per group of companies).

Fuel and power rate

5.00%

5.00%

Deregistration

£65,000

£62,000

Rounded to the nearest multiple of £5.00

£125,001* to £250,000

1%

1%

£500,000+

4%

4%

£150,001 to £250,000

1%

1%

£500,000+

4%

4%

*£150,000 in designated disadvantaged areas.

£125,000+

1%

1%

£150,000+

1%

1%

Lease premium rates are as for land transactions except the nil band only applies if rent is less than £600 per annum.

31 January 2008 Deadline for filing tax returns for 2006/07. Balancing payment due for 2006/07. First payment on account due for 2007/08.

31 January 2008 Interest charged on any tax owed but remaining unpaid for tax returns issued up to 31 October 2007.

1 February 2008 First fixed penalty of £100 charged if the self assessment tax return was not filed by 31 January 2008. (If return issued after 31 October 2007 this date is revised to three months from the date of issue stated on the return).

28 February 2008 First surcharge applied at a rate of 5% to the outstanding balancing payment for 2006/07, this does not apply to the first balancing payment for 2007/08.

12 March 2008 Alistair Darling’s first budget speech as Chancellor.

5 April 2008 Final day of the 2007/08 tax year, also being the final day on which one can:

• utilise the individual capital gains tax annual exemption of £9,200 for 2007/08;
• claim indexation allowance and taper relief on capital disposals before it is abolished;
• utilise inheritance tax annual gift exemption of £3,000 for 2007/08;
• pay personal pension contributions in respect of 2007/08;
• IR35 companies pay salaries to contribute PAYE/NIC to 2007/08.

6 April 2008 First day of the 2008/09 tax year. 2007/08 tax returns or notices to complete a tax return will be sent out to all self-assessment taxpayers.

19 April 2008 Deadline for payment of 2007/08 PAYE/NIC for IR35 companies.

19 May 2008 Deadline for filing PAYE return forms, or substitutes and P35.

31 May 2008 Deadline for employers to issue form P60 for year ended 5 April 2008.

1 July 2008 Corporation tax liability due to be paid for companies with a 30 September 2007 year end.

5 July 2008 Last chance to claim for any new entitlements to Tax credits so as to receive full entitlement.

6 July 2008 Deadline for submission of forms P11d, P11d(b) and P9D for 5 April 2008.

19 July 2008 Class 1A NIC payment is due (22 July for larger employers paying electronically).

31 July 2008 The following events occur for individuals:

• Second payment on account for 2007/08 is due for self assessment taxpayers;
  
• Second fixed penalty of £100 is issued if the self assessment tax return remains outstanding;
  
• Second 5% surcharge if the 2006/07 balancing payment has still not been paid. Again this does not apply to the payments on account.

31 July 2008 The following events occur for companies:

• Corporation tax returns for the year ended 31 July 2007 must be filed;
  
• Limited company accounts filing deadline for year ended 30 September 2007.

1 August 2008 Corporation tax due to be paid for 31 October 2007 accounting period end.

31 August 2008 Limited company accounts filing deadline for 31 October 2007 accounting period end and filing deadline for corporation tax returns with an accounting period ending 31 August 2007.

1 September 2008 Corporation tax liability to be paid for accounting periods ending 30 November 2008 accounting period end.

30 September 2008 Deadline for:

• Receipt of self assessment tax returns by HMRC where you wish for HMRC to calculate your liability;
  
• Corporation tax returns for accounting periods ended 30 September 2007;
  
• Submission of self assessment tax returns where you wish for your balancing payment (below £2,000) to be collected through your 2009/10 PAYE code.

1 October 2008 Corporation tax liability due for payment in relation to 31 December 2007 accounting periods.

5 October 2008 Deadline for notifying HMRC of new income sources where a self assessment tax return has not previously been required.

6 October 2008 Last date to notify HMRC of a tax liability where no tax return has been issued.

19 October 2008 Payment of income tax and NIC for the previous year under any voluntary PAYE settlement agreement.

31 October 2008 Deadline for:

• Submission of paper self assessment tax returns for 2007/08;
  
• Limited company accounts filing deadline for accoutning periods ended 31 December 2007;
  
• Filing of corporation tax returns for accounting periods ended 31 October 2007.

30 December 2008 Deadline for submission of self assessment tax returns over the internet where you wish for your balancing payment (below £2,000) to be collected through your 2009/10 PAYE code.

31 January 2009 Deadline for:

• Submission of 2007/08 self assessment tax returns over the internet;
  
• Submission of 2007/08 self assessment paper returns for designated persons (such as MP’s and public figures);
  
• Payment of 2007/08 balancing payment;
  
• Payment of 2008/09 first payment on account.

1 February 2009 First fixed penalty of £100 charged if the self assessment tax return was not filed by 31 January 2008. (If return issued after 31 October 2007 this date is revised to three months from the date of issue stated on the return).

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.

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