Business Taxation Services



Our core Taxation Services consist of

  • Inheritance Tax Planning
  • Payroll and PAYE Returns
  • Personal Tax
  • Property Tax
  • Tax Disputes
  • Tax Enquiries and Investigations
  • Tax Planning
  • Tax Returns and Self-Assessment
  • VAT Planning and Disputes
  • VAT Registration
  • VAT Returns

Inheritance Tax Planning

Tailored wealth succession planning enables a smooth transition to the next generation as well as minimising tax liabilities.

We can advise…

  • Individuals whose estate planning is close to the nil rate band or many times larger;
  • Techniques to mitigate inheritance tax on family homes, family businesses and investment portfolios;
  • On both lifetime transfers and wills.

However, estate planning is not solely about tax and we adopt a common sense approach, helping you to ensure your own financial needs are met and to avoid “giving away too much too soon”.

Payroll, PAYE Returns and RTI

Everything seemed fine running your own business until the day you took on your first employee and became an unpaid tax collector. This is when you found out what red tape was all about.

Let us take the strain away from you and let you get on with running and growing the business. Payroll is complicated and has to be done on time and you as the employer are responsible for the mistakes.

We run payrolls on time and can provide a tailor made service for your business including…

  • Employee pay slips;
  • Monthly summaries;
  • Departmental reports;
  • Dealing with leavers and starters;
  • Provision of analysis of staff costs;
  • Real Time Information (RTI) PAYE returns for the Revenue;
  • Assistance with automated payment set-up to your employees;
  • CIS returns completed by us.

You will never have to worry about calculating statutory sick pay or maternity pay and dealing with tax credits and student loan deductions ever again!

And at year end…                                    

  • Employer Annual Return P35;
  • Employee summary P60’s;
  • P11D and P9D benefit and expenses returns.

And the related tax planning advice…

Beyond the payroll compliance service, we offer comprehensive advice on all employment tax issues including…

  • Tax efficient remuneration strategies;
  • Planning for retirement;
  • Termination payments;
  • Inducement payments;
  • Company car and van strategies;
  • Benefits planning.

Personal Tax

Need help with your Tax Return or want to pay less tax?

Personal tax services are available both for business owners and private individuals including…

  • All aspects of Self Assessment;
  • Dealing with Tax Returns
  • Tax enquiries
  • Computation of liabilities;
  • Tax disputes
  • Correspondence with HMRC;
  • Inheritance tax planning
  • Tax Investigation Fees Protection
  • Trusts.

Property Tax

Are you a buy to let investor or property dealer or developer?

Property tax is a bit of a maze and we can advise you on issues such as…

  • Tax reduction strategies for rental income;
  • What is a repair and tax deductible and what is capital and not;
  • When to use a Limited Company to save tax;
  • Trading income versus Capital Gain considerations and advice;
  • Capital Gains rollover and holdover considerations;
  • Stamp Duty planning;
  • Tax efficient mortgage structures;
  • VAT considerations of property deals;
  • Making the most of the Principal Private Residence election;
  • Tax issues on the sale of part of your residence;
  • Second homes;
  • Inheritance Tax angles.

 Tax Disputes

It’s an unfortunate fact of business life that from time to time there will be disagreement between the taxpayer and HMRC. Sometimes it is the facts of the case that are in question but it is also often the legislation itself that is in question. Tax isn’t always black and white and where this is the case we are happy to argue your case in the strongest possible terms.

As a taxpayer you have many rights and we will ensure they are never forgotten by HMRC.

Disputes can arise in all sorts of areas outside of full enquiries and investigations including…

  • Employment status disputes;
  • Repairs v capital disputes;
  • Private usage adjustments;
  • Capital allowances – is it plant or property?
  • Settlements legislation – the classic husband and wife company scenario;
  • IR35;
  • Valuations for tax purposes;
  • Is it a trading activity?
  • VAT segregation of businesses to avoid registration;
  • Employee benefit disputes.

We have the specialist tax knowledge to assist with a wide range of tax disputes.

Tax Enquiries and Investigations

It is an unfortunate fact of business life that you may well come under enquiry by HMRC through no fault of your own or of your accountant. HMRC now investigates businesses at random as well as for specific reasons. A full investigation is not a pleasant experience for anyone. Without expert defence it is possible to get trampled all over.

If you are selected at random, you need an accountant who knows how HMRC works and thinks and is prepared to fight your case. We make sure that the Taxman keeps to its own internal guidelines and doesn’t over step the mark. We will talk you through the enquiry process and what to expect and support you throughout.

The Penalties

There are various penalties HMRC can seek to impose following an enquiry for undeclared income. As well as having to pay the tax, you can find them seeking penalties up to an amount equal to the tax, so doubling your tax bill. Interest on the late payment of the tax is also part of the arrangement – not a pleasant experience. We can help you minimize these penalties..

Tax Planning

You are entitled to arrange your affairs to pay the absolute legal minimum amount of tax.

Whilst completion of tax returns and statutory tax obligations are important jobs, all accountants should be capable of completing them and advising you of your tax position and liabilities.

We try to do more than just this and are interested in maximising your tax planning opportunities.

We all have to pay our taxes but within the legal framework there are numerous ways of saving tax and making sure you do not pay a penny more than is absolutely necessary. We have extensive experience in this area of work and always fight as hard as we can for our clients.

We can help with tax planning in relation to…

  • Personal taxes;
  • Business taxes;
  • Tax efficient employee remuneration strategies;
  • VAT planning
  • Inheritance Tax strategies
  • Capital Gains;
  • Profit extraction strategies;
  • Exit strategies;
  • Employment status
  • IR35 advice.

Apart from extensive experience in this arena, we have invested heavily in reference materials and specialist software and have access to the Tax Legislation, Tax Cases, to the internal manuals of HMRC and to detailed commentary on all taxes, direct and indirect. This allows us to research any tax topic at all and provide many ways of helping you legally save tax.

New clients are often surprised at how much can be done to help with their tax position. We are always willing to go that extra mile to offer advice on the areas where tax can be saved. We enjoy this work!

It is important that this work is done in advance and you should contact us as soon as possible.

All of our Tax Planning makes legitimate use of the Tax Legislation and Case Law, so that you are not put at additional risk from a full HMRC Enquiry, or where there are risks, these are pointed out to you.

Tax Returns and Self Assessment

Tax Returns can be completed for…

  • Individuals and sole traders;
  • Partnerships;
  • Limited Companies.

The self-assessment regime is full of penalties and HMRC enquiry powers are extensive. It’s important that…

  • Returns are correctly completed;
  • They are filed on time;
  • All backup records are retained for the appropriate period of time.

As well as the completion of your return we can assist with…

  • Advice on your tax liabilities;
  • Negotiating with the Collector if necessary;
  • Identifying suitable tax planning opportunities;
  • Completing all the necessary tax computations;
  • Dealing with all correspondence from HMRC, taking the worry away from you.

VAT Planning and Disputes

Compliance with VAT is becoming ever more complex. Investigations from the Vatman can be intense – all the more important that you have an accountant who is successful in negotiations with them.

We take best advantage of the reliefs available and the interpretation of the regulations. This is an extremely important feature of the service provided as it ensures peace of mind for all our clients.

We can help you with advice on the VAT schemes suitable to your business and dealing with VAT control visits as well.

VAT Registration

For VAT registration we can assist with…

  • Advising if you need to or if it would be beneficial to register;
  • Completion of the VAT registration forms and formalities;
  • Advising on the best VAT schemes to use suitable to your business – some you have to notify HMRC you are using and some you don’t.

VAT Returns

Compliance with VAT is complex. Investigations by the Vatman can be intense – all the more important that your VAT returns are completed correctly.

There are three methods we can use to assist in completion of VAT returns…

  1. Let us do your book-keeping and we complete the return from there;
  2. Give us your books and we’ll complete the return for you;
  3. Provide training on how to complete your return.

We complete VAT returns in good time to ensure you avoid any penalties.

Tax Rates and Allowances 2013/14

 

  • Capital Allowances
  • Capital Gains Tax
  • Car And Fuel Benefits
  • Charitable Gifts
  • Corporation Tax
  • Fuel Rates
  • Income Tax Allowances
  • Income Tax Bands & Rates
  • Individual Savings Accounts
  • Inheritance Tax
  • Key Tax Dates
  • Minimum Wage
  • National Insurance
  • Pension Premiums
  • Social Security Benefits
  • Stamp Duty
  • Tax Credits, Universal Credit & Child Benefit
  • Tax Free Mileage Allowances
  • Tax Shelters
  • Value Added Tax
  • Van Benefits

Capital Allowances

Allowance 2013/14

Plant and machinery

Main rate pool:
– expenditure up to £250,000 (£25,000 before 1 January 2013) – First Year
– expenditure over £250,000 (£25,000 before 1 January 2013) – First Year
– subsequent years writing down allowance

100% (1)
18%
18%

Special rate pool (long life assets, integral features):
– expenditure up to £250,000 (£25,000 before 1 January 2013) – First Year
– expenditure over £250,000 (£25,000 before 1 January 2013) – First Year
– subsequent writing down allowance

100% (1)
8%
8%

Energy saving plant and machinery

100% (2)

Motor cars

New cars with CO2 emission not exceeding 95gm/km

100%(3)

Cars with C02 emission over 95gm/km to 130gm/km – writing down allowance

18% (3)

Cars with C02 emission over 130gm/km – writing down allowance

8% (3)

Cars acquired prior to April 2009 – writing down allowance

18% – max £3,000 (3)

Research & development

Large Companies

130%(4)

SME’s

225%

Intangible assets for companies

Amortisation per accounts or 4%

Disadvantaged Areas Business Premises  Renovation allowance

100%

Capital allowances write off the cost of capital assets against taxable profits. They are used instead of the depreciation in the accounts, which is not allowable as a tax deduction.

(1) For accounting periods shorter or longer than 1 year the £250,000 (£25,000 before 1 Janaury 2013) limit is pro-rata. Transitional provisions apply to accounting periods that straddle 1 January 2013. There is a single £250,000 (£25,000 before 1 Janaury 2013) AIA limit for groups of companies and there is “anti-fragmentation” rules for “related” companies and businesses under common control. The AIA limit can be allocated between companies as they wish.

(2) Companies that make losses attributable to 100% first year allowances on designated energy saving or environmentally beneficial plant and machinery can surrender the loss in exchange for the first year tax credit equal to 19% of the loss surrendered subject to a maximum of the greater of £250,000 or the company’s total PAYE and NIC liability for the period concerned.

(3) The distinction between cars that cost more and less than £12,000 ended on 1 April 2009 for companies and 6 April 2009 for unincorporated businesses. From this date cars will be put into one of two general plant pools. Cars with private usage will still be held in individual pools but the rate determined by these criteria. For expenditure on cars before April 2009, there is a 5 year transitional period where they will continue to be subject to the existing expensive car rules. Prior to these dates there was a 20% writing down allowance subject to a maximum of £3000p.a.

Capital Gains Tax

Annual exempt amount

2013-14 (£)

2012-13 (£)

Individuals etc

10,900

10,600

Other trustees (spread between each trust)

5,450

5,300

 

*Individuals, trustees of settlements for the disabled and personal representatives of the estate of a deceased person.

2013-14 (£)

2012-13 (£)

Standard Rate of tax

18%

18%

Higher rate*

28%

28%

Entrepreneurs’ Relief – effective rate

10%

10%

Entrepreneurs’ Relief lifetime limit

£10million

£10million

 

Entrepreneurs’ relief is available on qualifying lifetime gains on or after 6th April 2008.

*The higher rate applies to higher and additional rate taxpayers.

Transfers between husband and wife or civil partners that live together are exempt.

Car and Fuel Benefits

The following rates apply for 2013/14.

CO2 emissions 
grams per kilometre

Petrol

Diesel

% of list price

1 – 75

5

8

76 – 94

10

13

95 – 99

11

14

100-104

12

15

105-109

13

16

110-114

14

17

115-119

15

18

120-124

16

19

125-129

17

20

130-134

18

21

135-139

19

22

140-144

20

23

145-149

21

24

150-154

22

25

155-159

23

26

160-164

24

27

165-169

25

28

170-174

26

29

175-179

27

30

180-184

28

31

185-189

29

32

190-194

30

33

195-199

31

34

200-204

32

35

205-209

33

35

210-214

34

35

215 and above

35

35

To find the CO2 figure for your car, you can…

  • visit the Vehicle Certification Agency www.vca.gov.uk
  • inspect the car’s V5 registration document
  • ask your dealer
  • look at the data pages of car magazines

For cars registered before 1 January 1998 the tax charge is 15% of the list price for engines up to 1,400 cc, 22% for engines of 1,401 cc to 2,000 cc and 32% for engines above 2,000 cc.

Where cars have zero CO2 emissions in all circumstances, the car benefit charge is reduced to zero.

List price is reduced for capital contributions made by the employee up to £5,000.

Employee contributions reduce the taxable benefit by the amount paid.

Fuel Benefits

The car fuel benefit is calculated by applying the above car benefit percentage to a figure of £21,100 (2012/13 – £20,200).

The fuel benefit 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.

Charitable Gifts

Gift Aid

Individuals can claim higher and additional rate relief on cash gifts and payments to charities using gift aid. It allows a charity to reclaim the basic-rate tax on donations made by UK taxpayers from HMRC. Higher and additional rate taxpayers can claim an additional tax relief on the gross donation through their tax return at their marginal rate.

You can make a claim for a charitable donation made in one tax year to be treated as if it had been made in the previous tax year.

To qualify for gift aid you must pay at least as much tax as the amount the charities will reclaim on your gifts in the tax year in which you make them. You must make a declaration to the charity concerned, other than for eligible charities and Community Amateur Sports Clubs who can claim the tax on up to £5000 of small donations (up to £20) without the need for a declaration.

Give As You Earn

Give As You Earn allows employees to make regular donations tax-free from their gross salary. The employer will deduct the amount from their salary for payment to the charity.

The taxable pay of the employee is reduced by the amount of their donation.

Corporation Tax

Corporation tax on Profits – £ per year (unless stated)

Rate

Financial Year to 31/3/2014

Financial Year to 31/3/2013

Small companies rate

20% on first 300,000

20% on first 300,000

Marginal relief

300,001 – 1,500,000

300,001 – 1,500,000

Marginal relief fraction

3/400

1/100

Effective marginal rate

23.75%

25%

Main rate

23% on 1,500,001 or more

24% on 1,500,001 or more

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

It has been announced the main companies rate will decrease to 21% from 1 April 2014 and to 20% from 1st April 2015.

Fuel Rates

From 1st December 2013*

Petrol

LPG

Up to 1400cc

14p

9p

1401cc to 2000cc

16p

11p

Over 2000cc

24p

16p

 

Diesel

Up to 1600cc

12p

1601cc to 2000cc

14p

Over 2000cc

17p

*Rates per mile

From 1st September 2013*

Petrol

LPG

Up to 1400cc

15p

10p

1401cc to 2000cc

18p

11p

Over 2000cc

26p

18p

 

Diesel

Up to 1600cc

12p

1601cc to 2000cc

16p

Over 2000cc

18p

*Rates per mile

Income Tax Allowances

2013-14 (£)

2012-13 (£)

Personal allowance – born after 5 April 1948 / under 65 (1)

9,440

8,105

Personal allowance for people born between 6 April 1938 & 5 April 1948 / aged 65-74 at the end of year of assessment (1)(2)

10,500

10,500

Personal allowance for people born before 6 April 1938 / 75 and over at the end of year of assessment (1)(2)

10,660

10,660

Income limit for age-related allowances

26,100

25,400

Married couple’s allowance – aged 75 or more (relief at 10%) (2)

7,915

7,705

Minimum amount of married couple’s allowance

3,040

2,960

Blind person’s allowance

2,160

2,100

(1) The personal allowance is reduced for individuals with a gross income before the allowance of £100,000. The allowance will be reduced by £1 for every £2 of gross income above the income limit up to a maximum reduction down to zero. This applies irrespective of age.

(2) These allowances are reduced where the income is above the income limit by £1 for every £2 of income above the limit but will never be less than the basic personal allowance or minimum amount of married couple’s allowance.

Income Tax Bands & Rates

2013-14

2012-13

Taxable Bands(£)

Rate

Taxable Bands(£)

Rate

0 – 2,790

10%*

0 – 2,710

10%*

2,791-32,010

20%**

2,711-34,370

20%**

32,011-150,000

40%***

34,371-150,000

40%***

Over 150,000

45%****

Over 150,000

50%****

* Only applies to savings income (otherwise is 20%)

** Dividends taxed at 10%

*** Dividends taxed at 32.5% of the gross dividend

**** Dividends taxed at 37.5% (2012/13 – 42.5%) of the gross dividend

Other income is taxed first, then savings and then dividends.

Individual Savings Accounts

Annual exempt amount

Overall Limit (£)

Cash Limit (£)

2013/14

11,520

5,760

2012/13

11,280

5,640

Savings are exempt from income tax and capital gains tax.

Anyone aged 16-17 can invest in cash ISA only up to the cash limit above.

Junior ISA’s are available for those under 18 to invest up to £3,720 (2012/13 – £3,600).

Inheritance Tax

Inheritance Tax Thresholds

Year

Amount (£)

2013-14

325,000

2012-13

325,000

The IHT threshold is to be frozen at £325,000 until 2017/18.

For deaths after 9th October 2007, a transfer of any unused nil rate band is available from former deceased spouses and civil partners.

Amounts above the threshold are taxed at 40%.

Most transfers between spouses and civil partners are exempt.

Chargeable lifetime transfers are initially charged at 20%.

Business Property Relief

  • Business, interest in business or qualifying shareholders in unquoted companies (includes AIM listed companies) – 100%
  • Land, buildings, machinery, or plant used in a company controlled by the transferor – 50%
  • Agricultural property – 50% or 100%

Other Reliefs:

  • Annual gifts of up to £3000 per donor are exempt.
  • Small gifts £250
  • Marriage gifts…
    • parent £5,000
    • grandparent £2,500
    • bride/groom £2,500
    • other £1,000

Reduced charge on gifts made within seven years of death:

Years before death

0-3

3-4

4-5

5-6

6-7

% of death charge

100

80

60

40

20

Key Tax Dates

Income Tax and Class 4 NIC

  • 31 July 2013 – 2nd payment on account for 2012/13
  • 31 Jan 2014 – balancing payment for 2012/13 and 1st payment on account for 2013/14
  • 31 July 2014 – 2nd payment on account for 2013/14
  • 31 Jan 2015 – balancing payment for 2013/14 and 1st payment on account for 2014/15

Tax Return

  • 31 October 2013 – Filing deadline for 2013 paper return
  • 31 January 2014 – Filing deadline for 2013 online return

Capital Gains Tax

  • 31 January 2014 – CGT payment due for 2012/13
  • 31 January 2015 – CGT payment due for 2013/14

Inheritance Tax

Payment due 6 months after the end of the month of death or chargeable transfer.

For chargeable lifetime transfers from 6 April to 30 September, payment is due by 30 April in the following tax year.

Corporation Tax

Payments are due 9 months and one day after the end of the accounting period. Accounts longer than 12 months are divided into two periods.

2012/13 PAYE Return Deadlines

  • 19 May 2013 – P35, P14, P38, P38A and CIS36
  • 31 May 2013 – P60s to employees
  • 6 July 2013 – P11D, P11Db and P9D – and give copies to employees
  • 19 July 2013 – Payment of Class 1A National Insurance on benefits due or 22nd July 2012 for electronic payments

Minimum Wage

From 1 October 2013

From 1 October 2012

21 & over

£6.31 p.h.

£6.19 p.h.

18 to 20

£5.03 p.h.

£4.98 p.h.

16 and 17

£3.72 p.h.

£3.68 p.h.

Apprentice rate

£2.68 p.h.

£2.65 p.h.

National Insurance

£ per week

2013-14

2012-13

Employees

Lower earnings limit, primary Class 1

£109

£107

Upper earnings limit, primary Class 1

£797

£817

Upper accruals point (for those on contracted out pensions)

£770

£770

Primary threshold (employees)

£149

£146

Secondary threshold (employers)

£148

£144

Employees’ primary Class 1 rate between primary threshold and upper earnings limit

12%

12%

Employees’ primary Class 1 rate above upper earnings limit

2%

2%

Employees’ contracted out rebate

1.4%

1.4%

Married women’s reduced rate between primary threshold and upper earnings limit

5.85%

5.85%

Married women’s rate above upper earnings limit

2%

2%

Employers’ secondary Class 1 rate above secondary threshold

13.8%

13.8%

Employers’ contracted-out rebate, salary-related schemes

3.4%

3.4%

Rates are nil for those over state retirement age. Normal employers’ contributions are still payable.

Class 1A and Class 1B

13.8%

13.8%

Class 2 rate (self-employed)

£2.70

£2.65

Class 2 small earnings exception

£5,725 per year

£5,595 per year

Special Class 2 rate for share fishermen

£3.35

£3.30

Special Class 2 rate for volunteer development workers

£5.45

£5.35

Class 3 rate (voluntary contributions)

£13.55

£13.25

Class 4 lower profits limit (self-employed)

£7,755 per year

£7,605 per year

Class 4 upper profits limit (self-employed)

£41,450 per year

£42,475 per year

Class 4 rate between lower profits limit and upper profits limit

9%

9%

Class 4 rate above upper profits limit

2%

2%

There is no Class 4 payable if the state retirement age was reached by 6 April 2013

 NIC Holiday

Some businesses will be exempt from paying the employer’s class 1 NICs for 12 months for up to 10 employees, capped at £5,000 per employee. The scheme started in September 2010 but will apply to new businesses set up on and after 22 June 2010. It will only apply in Scotland, Wales, Northern Ireland, the North of England, Yorkshire, the Midlands and the South West regions. Certain businesses are excluded, such as those under the IR35 or Managed Service Company rules, and businesses in grant-supported sectors such as agriculture, fisheries and coal.

 Budget 2013

From April 2014, the first £2,000 is to be deducted from National Insurance (Employer Class 1 secondary NIC liability) paid by an employer.

Pension Premiums

For year 2013/14

  • Maximum amount of pension contributions that qualify for tax relief is the greater of £3,600 or the individuals UK relevant earnings.
  • An annual allowance is set at £50,000* for the Pension Input Period ending in the tax year. Contributions in excess of the allowance are charged to tax at the top slice of income. Contributions also include those made by the employer.
  • Unused annual allowances of up to £50,000 can be carried forward for the next three years. When considering if there is any unused allowance from 2010/11, 2011/12 and 2012/13 the annual allowance for those years will be deemed to be £50,000.
  • Employer contributions need to be “wholly and exclusively” for the benefit of the trade to obtaintax relief.
  • Minimum age for taking benefits is 55. Was 50 prior to 6 April 2010.
  • Maximum age for tax relief on contributions is 74.
  • Lifetime allowance is £1,500,000. (£1,250,000 for 2014/15 onwards)
  • There is a tax charge of 55% on the excess value above the lifetime allowance if the excess if taken as a lump sum and 25% on monies retained.
  • Maximum tax-free lump sum is 25%.

* The annual allowance will be set at £40,000 for the Pension Input Period ending in the tax year 2014/15

Social Security Benefits

Weekly Benefit

2013-14

2012-13

Basic retirement pension – single person

£110.15

£107.45

Basic retirement pension – married couple

£176.15

£171.85

Statutory pay rates – average weekly earnings £109 or over

Statutory Sick Pay

£86.70

£85.85

Statutory Maternity Pay – first six weeks

90% of weekly earnings

Statutory Maternity Pay – next 33 weeks

£136.78*

£135.45*

Statutory Paternity Pay – 2 weeks

£136.78*

£135.45*

Statutory Adoption Pay – 39 weeks

£136.78*

£135.45*

Jobseekers Allowance** – Single Person (over 25) upto

£71.00

£71.00

Jobseekers Allowance** – Married Couple upto

£111.45

£111.45

* Or 90% of weekly earnings if this is lower

** Jobseekers Allowance will be replaced by Universal Credits in a phased introduction between April and October 2013

Stamp Duty

The following rates apply for 2013/14.

Stamp Duty Land Tax

The applicable rate of Stamp Duty Land Tax must be applied to the whole of the consideration paid to acquire the land / buildings.

Land and Buildings in the UK

Rate

Residential

Non-residential

Zero

£0 to £125,000

£0 to £150,000

1%

£125,000+ to £250,000*

£150,000+ to £250,000

3%

£250,000+ to £500,000

£250,000+ to £500,000

4%

£500,000+ to £1,000,000

Over £500,000

5%

£1,000,000+to £2,000,000

7%

Over £2,000,000

15%

Over £2,000,000 bought through a company

For disadvantaged areas, sales of land and buildings up to £150,000 are exempt.

New leases (lease duty)

Duty on rent

Net present value of rent

Rate

Residential

Non-residential

Zero

£0 to 125,000

£0 to £150,000

1%

£125,000+

£150,000+

Please note that when calculating duty payable on the ‘NPV’ (Net Present Value) of leases, you must reduce your ‘NPV’ calculation by the following before applying the 1% rate.

Residential – £125,000
Non-Residential – £150,000

Duty on premium is the same as for transfers of land (except special rules apply for premium on non-residential properties where the rent exceeds £1,000 annually).

Stamp Tax

The rate of stamp duty / stamp duty reserve tax for the transfer of shares and securities is 0.5%. Where the consideration is £1,000 or less on the transfer of shares, they will be exempt from stamp duty.

Tax Credits, Universal Credit & Child Benefit

Universal Credit will replace Child Tax Credits and Working Tax Credits as well as income-based Jobseekers Allowance, Income Support and Housing Benefit. It does not replace Child Benefit.

Universal Credit is starting with certain areas of North-West of England in April 2013. Form October 2013 there is a national launch of Universal Credits for new claimants. Existing claimants will be phased in over a period expected to be completed by the end of 2017.

Tax Credits

Working Tax Credit* – £ per year (unless stated)

Rates and Thresholds

2013-14

2012-13

Basic element

1,920

1,920

Couple and lone parent element

1,970

1,950

30 hour element

790

790

Disabled worker element

2,855

2,790

Severe disability element

1,220

1,190

Childcare Element of the Working Tax Credit* – £ per year (unless stated)

Rates and Thresholds

2013-14

2012-13

Maximum eligible cost for one child

£175 per week

£175 per week

Maximum eligible cost for two or more children

£300 per week

£300 per week

Percentage of eligible costs covered

70%

70%

Child Tax Credit* – £ per year (unless stated)

Rates and Thresholds

2013-14

2012-13

Child Tax Credit Family element

545

545

Child element

2,720

2,690

Disabled child element

3,015

2,950

Severely disabled child element

1,220

1,190

* Tax Credits elements will be replaced by Universal Credits in a phased introduction between April and October 2013

Income thresholds and withdrawal rates – £ per year (unless stated)

Rates and Thresholds

2013-14

2012-13

First income threshold

6,420

6,420

First withdrawal rate (per cent)

41%

41%

First threshold for those entitled to Child Tax Credit only

15,910

15,860

Income disregard

5,000

10,000

Income fall disregard

2,500

2,500

Child Benefit

Child Benefit/Guardian Allowance – £ per week

Rates and Thresholds

2013-14

2012-13

Eldest/Only Child

20.30

20.30

Other Children

13.40

13.40

Guardian’s Allowance

15.90

15.55

From 7 January 2013 tax payers with income of over £50,000 will have their Child Benefit restricted.

This will be administered as an income tax charge on the person earning over £50,000.

The income tax charge will apply at a rate of one per cent of the full Child Benefit for each £100 of income between £50,000 and £60,000. The charge on taxpayers with income above £60,000 will be equal to the amount of Child Benefit paid.

Where both partners earn over £50,000 it is the partner with the highest income who will be subject to the charge.

Universal Credit

Standard Allowance – £ per month

Monthly Amount

2013-14

2012-13

Single claimant (under 25)

246.81

N/A

Single claimant (over 25)

311.55

N/A

Joint claimants (both under 25)

387.42

N/A

Joint claimants (either over 25)

489.06

N/A

 Child Element – £ per month

Monthly Amount

2013-14

2012-13

First child

272.08

N/A

Second and each subsequent child

226.67

N/A

Additional for disabled child – low rate

123.62

N/A

Additional for disabled child – high rate

352.92

N/A

 Capability for Work Elements – £ per month

Monthly Amount

2013-14

2012-13

Limited capability for work

123.62

N/A

Limited capability for work and work-related activity

303.66

N/A

 Career Element – £ per month

Monthly Amount

2013-14

2012-13

Caring for severely disabled person (at least 35 hours per week)

144.70

N/A

 Childcare Costs Element – £ per month

Monthly Amount

2013-14

2012-13

Maximum for one child

532.29*

N/A

Maximum for two or more children

912.50*

N/A

* 70% of relevant childcare costs met

 Housing Costs Element

This includes:

  • · Eligible rent payments
  • · Certain service charges
  • · Mortgage interest

Work Allowance and Taper – £ per month

Higher Work Allowance – per month

Single claimant – no children

111

Single claimant – one or more children

734

Single claimant – limited capability for work

647

Joint claimants – no children

111

Joint claimants – one or more children

536

Joint claimants – one or both have limited capability for work

647

 

Lower Work Allowance – per month

Single claimant – no children

111

Single claimant – one or more children

263

Single claimant – limited capability for work

192

Joint claimants – no children

111

Joint claimants – one or more children

222

Joint claimants – one or both have limited capability for work

192

After the Work Allowance has been taken into account, the Universal Credit award will be withdrawn at a rate of 65p for each £1 of net earnings.

Benefit Cap* – £ per week

Per week

Single adult – no children

350.00

Single adult – one or more child

500.00

Couple – with or without children

500.00

* Only affects claimants in receipt of Housing Benefit during the Universal Credit transitional period

Tax Free Mileage Allowances

Rates for 2012/13 and 2013/14

First 10,000 business miles in the tax year

Each mile over 10,000 miles in the tax year

Extra passenger making same trip

Cars and vans

45p

25p

5p

Motor cycles

24p

24p

N/A

Bicycles

20p

20p

N/A

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.

Tax Shelters

2013-14 (£)

2012-13 (£)

Enterprise Investment Scheme (EIS) up to 
(Income tax relief is 30% & CGT deferral relief also available)

1,000,000

1,000,000

Seed Enterprise Investment Scheme (SEIS ) up to 
(Income tax relief is 50%. CGT relief is 18% or 28% for 50% of the gain in 2013/14 and 100% of the gain in 2012/13 )

100,000

100,000

Venture Capital Trust (VCT ) up to 
(Income tax relief of VCT’s is at 30%)

200,000

200,000

Golden Handshake maximum

30,000

30,000

Rent a Room – exempt on gross annual rent up to

4,250

4,250

Value Added Tax

Standard Rate

20.0%

VAT Fraction

1/6

Lower rate

5%

From 1/4/13

From 1/4/12

Registration level

£79,000 p.a.

£77,000 p.a.

Deregistration limit

£77,000 p.a.

£75,000 p.a.

Cash accounting scheme – registration up to

£1,350,000

£1,350,000

Cash accounting scheme – deregistration limit

£1,600,000

£1,600,000

Optional flat rate scheme – registration up to

£150,000

£150,000

Optional flat rate scheme – deregistration limit (vat inclusive)

£230,000

£230,000

Annual accounting scheme – registration up to

£1,350,000

£1,350,000

Annual accounting scheme – deregistration limit

£1,600,000

£1,600,000

 VAT fuel scale charges from 1/5/13

CO2 band

Scale charge per quarter £

VAT on quarterly charge £

124 or less

168

28.00

125 – 129

253

42.17

130 – 134

269

44.83

135 – 139

286

47.67

140 – 144

303

50.50

145 – 149

320

53.33

150 – 154

337

56.17

155 – 159

354

59.00

160 – 164

371

61.83

165 – 169

388

64.67

170 – 174

404

67.33

175 – 179

421

70.17

180 – 184

438

73.00

185 – 189

455

75.83

190 – 194

472

78.67

195 – 199

489

81.50

200 – 204

506

84.33

205 – 209

523

87.17

210 – 214

539

89.83

215 – 219

556

92.67

220 – 224

573

95.50

225 and above

590

98.33

 VAT fuel scale charges from 1/5/12

CO2 band

Scale charge per quarter £

VAT on quarterly charge £

124 or less

166

27.67

125 – 129

250

41.67

130 – 134

266

44.33

135 – 139

283

47.17

140 – 144

300

50.00

145 – 149

316

52.67

150 – 154

333

55.50

155 – 159

350

58.33

160 – 164

366

61.00

165 – 169

383

63.83

170 – 174

400

66.67

175 – 179

416

69.33

180 – 184

433

72.17

185 – 189

450

75.00

190 – 194

467

77.83

195 – 199

483

80.50

200 – 204

500

83.33

205 – 209

517

86.17

210 – 214

533

88.83

215 – 219

550

91.67

220 – 224

567

94.50

225 and above

583

97.17

Van Benefits

2013/14 and 2012/13

The taxable benefit for private use of a company van that is more than home to work travel is £3,000. For 5 years from 2010/11 this is reduced to nil for vans which cannot produce CO2 emissions under any circumstances.

The taxable benefit for fuel provided for private use is £564 for 2013/14 (£550 for 2012/13).

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