Personal Information

  • · The standard personal allowance is currently £11,850.
  • · Tax payers will pay 40% tax once income exceeds £46,350 (£11,850 + £34,500)
  • · 45% for those that income exceeds £150,000
  • National Insurance
  • · Salaries are charged at 12% and 2% with Self Employed profits charged at 9% and 2%.
  • · Employers will pay 13.8% on salaries and benefits.
  • Mileage
  • · The mileage allowance an employer can pay to an employee for use of the employee’s own car is 45p per mile up to 10,000 miles and 25p thereafter.
  • · If an employer pays less, the employee can claim tax relief for the difference as a deductible expense.
  • Capital Gains
  • · The rate of CGT for disposals is determined by adding the tax payer's chargeable gains to taxable income. If this falls within the 'basic rate' band then 10% charged. If the higher rate for income tax is exceeded then 20%.
  • · The annual exempt amount is £11,700 per person

Corporate information

    Corporation Tax
  • · Companies are charged the same rate of corporation tax regardless of profits at 19%
  • Capital Allowances
  • · Annual Investment Allowance (AIA) is currently £200,000.
  • Writing Down Allowances still apply on the “reducing balance” of expenditure.

    VAT

    ·The registration threshold for VAT is £85,000 and deregistration is £83,000.

    ·The standard rate of VAT is 20%.