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					INCOME TAX 2008/2009                                                         NATIONAL INSURANCE CONTRIBUTIONS                                         CAR BENEFIT RATES 2008/2009                                                   CAPITAL GAINS TAX
Taxable income                    rate       cumulative tax                  From 06/04/08 – not contracted out rates                                 Where a car is available for private use the benefit charge will be                                                        2008/2009    2007/2008
Up to £36,000                     20%        £7,200                          Class 1 weekly earnings             employee            employer         based on a percentage of the car’s price graduated between 15%                Annual exemption – individuals               £9,600       £9,200
over £36,000                      40%                                        £0–£105                             NIL                 NIL              and 35%, according to the level of the car’s carbon dioxide emissions         Annual exemption – most trustees             £4,800       £4,600
2007/2008                                                                    £105.01–£770                        11%                 12.8%            measured in grams per kilometre and rounded down to the nearest               Chattels exemption                           £6,000       £6,000
up to £2,230                      10%        £223                            Over £770                           1%                  12.8%            5g/km. There are no reductions in respect of the age of the car or            Entrepreneur’s relief – lifetime allowance   £1 million       –
£2,231–£34,600                    22%        £7,344                          Class 1A Employer contribution of 12.8% based on the amount of           level of business mileage. A 10% (13%) band applies to petrol (diesel)
                                                                                                                                                                                                                                    Rate on gains:
over £34,600                      40%                                                  taxable benefit provided to employees.                         cars with CO2 emissions of 120g/km or less.
                                                                                                                                                                                                                                    Individuals and trustees are taxed at a flat rate of 18%. Gains
There is a 10% starting rate for savings income only, with a limit of        Class 1B Employers liability on items included in a PAYE Settlement      CAR FUEL BENEFIT 2008/2009                                                    qualifying for entrepreneur’s relief are taxed at 10% with any
£2,320. If an individual’s taxable non-savings income is above the limit,              Agreement.                                                     As for car benefit calculations, the fuel charge is linked to the level of    excess over £1 million taxed at 18%. Taper relief and indexation
then the 10% savings rate will not apply. The rates applicable to            Class 2   Self-employed flat rate £2.30 per week. Small earnings         the car’s carbon dioxide emissions. The same %, ranging from 10% to           were abolished from 6 April 2008.
dividends are 10% for income below the basic rate limit and 32.5%                      exemption £4,825 per annum.                                    35%, is applied to £16,900 to calculate the tax and NIC charge.
                                                                             Class 3   Voluntary flat rate £8.10 per week.                                                                                                          INHERITANCE TAX From 06/04/08
above that. Trusts are taxed at 32.5% on dividends and 40% on                                                                                         REVENUE AUTHORISED MILEAGE RATES 2008/2009
                                                                             Class 4   Self-employed 8% of profits between £5,435 and                                                                                               Gross transfers                                            rate
other income.                                                                                                                                         Approved HMRC tax-free mileage rates.
                                                                                       £40,040 per annum. 1% above £40,040. Exempt if                                                                                               Up to £312,000                                             0%
INCOME TAX ALLOWANCES                                                                                                                                 Cars and vans                                                 rate per mile   Over £312,000                                              40%
                                                                                       pensionable age reached by beginning of year of assessment.
                                             2008/2009         2007/2008                                                                              Annual business mileage up to 10,000 miles                    40p
                                                                             VALUE ADDED TAX                                                                                                                                        Main exemptions
Personal allowance                           £5,435            £5,225                                                                                 Each additional mile over 10,000 miles                        25p             Transfers between UK domiciled spouses                     no limit
Personal allowance (age 65-74)               £9,030            £7,550        Standard rate                                17.5%                       Each passenger making same business trip                      5p
                                                                             Reduced rate                                 5%                                                                                                        Transfer from UK domiciled spouse to
Personal allowance (age 75 and over)         £9,180            £7,690                                                                                 Motorcycles                                                   24p             non-domiciled spouse                                       £55,000
Married couple’s allowance                   £6,535 b          £6,285 b      Registration level to 31/03/08               £64,000 per annum.
                                                                                                                                                      Bicycles                                                      20p             Annual gifts per donor                                     £3,000
(age 65-74 if born before 06/04/1935)                                        Registration level from 01/04/08             £67,000 per annum.
                                                                                                                                                      PENSION CONTRIBUTIONS                                                         Small gifts per donee                                      £250
Married couple’s allowance                   £6,625 b          £6,365 b      STAMP DUTY                                                   rate                                                                                      Gifts on marriage - Parent                                 £5,000
                                                                                                                                                      The pension regime fundamentally changed on 6 April 2006. For full
Income limit for age related allowances      £21,800           £20,900       Shares                                                       0.5%                                                                                                            - Grandparent                        £2,500
                                                                                                                                                      details of the changes, please consult your Wilkins Kennedy contact.
Blind person’s allowance                     £1,800            £1,730        STAMP DUTY LAND TAX                                                                                                                                                          - Other                              £1,000
Enterprise investment scheme relief          £500,000 a        £400,000 a    Residential in              Residential outside Non-residential   rate   For 2008/2009 the rules for employed and self-employed people are:
                                                                                                                                                                                                                                    Charities and Political parties                            no limit
Venture capital trusts                       £200,000 c        £200,000 c    disadvantaged areas         disadvantaged areas                          Permitted maximum annual gross contributions     £3,600                       Regular gifts out of income (subject to conditions)        no limit
Individual savings accounts                  £7,200            £7,000        £0 – £150,000               £0 – £125,000       £0 – £150,000     Zero   (If earnings are under £3,600)
Golden handshake exemption                   £30,000           £30,000                                                                                Permitted maximum annual gross contributions     100% of relevant             Transfers within 7 years before death
                                                                             Over £150,000               Over £125,000       Over £150,000
Rent a room relief                           £4,250            £4,250                                                                                 (If earnings are between £3,600 and £235,000) earnings                        Years             0-3      3-4        4-5        5-6        6-7
                                                                                   – £250,000                 – £250,000          – £250,000   1%
Child tax credit, working tax credit         *                 *                                                                                      Permitted maximum annual gross contributions     £235,000                     % of tax due 100%          80%        60%        40%        20%
                                                                             Over £250,000               Over £250,000       Over £250,000
and pension credit                                                                 – £500,000                 – £500,000          – £500,000   3%     (If earnings are more than £235,000)                                          Transfers, other than between individuals, not within 7 years of
*Tax credits to be claimed by direct application to HM Revenue and           Over £500,000               Over £500,000       Over £500,000     4%     Lifetime allowance                               £1,650,000                   death will be charged at half the death rates.
Customs (HMRC)                                                               Special rules apply in relation to leases.                               BASIC STATE PENSION BENEFITS From week beginning 07/04/08                     A claim can be made to transfer any unused Inheritance Tax
a) Relief limited to 20% b) Relief limited to 10% c) Relief limited to 30%   New zero carbon homes qualify for stamp duty land tax relief             Single and Widows                       £90.70 per week                       band on a person’s death to the estate of their surviving spouse
                                                                             from 01/10/07.                                                           Married                                 £145.05 per week                      or civil partner who dies on or after 9 October 2007.
CORPORATION TAX                                                      SELF-ASSESSMENT FILING AND TAX PAYMENT DATES FOR                             LONDON                                      ORPINGTON
Year ended 31/03/09
Taxable profits                rate
                                      Year ended 31/03/08
                                      Taxable profits         rate
                                                                     INDIVIDUALS AND PARTNERSHIPS
                                                                     Filing                          2008/2009
                                                                     Personal & Partnership tax returns
                                                                                                               2007/2008
                                                                                                                                                  T: 020 7403 1877
                                                                                                                                                  F: 020 7403 1605
                                                                                                                                                  E: london@wilkinskennedy.com
                                                                                                                                                                                              T: 01689 827505
                                                                                                                                                                                              F: 01689 831478
                                                                                                                                                                                              E: orpington@wilkinskennedy.com
                                                                                                                                                                                                                                   Tax Rates 2008/2009
£0–£300,000          21% £0–£300,000            20%
£301,000–£1,500,000 29.75% £301,000–£1,500,000 32.5%                 Paper Submission                31/10/09  31/10/08                           AMERSHAM                                    READING
Over £1,500,000      28% Over £1,500,000        30%                  Electronic Submission           31/01/10  31/01/09                           T: 01494 725544                             T: 0118 9512131
                                                                     TAX PAYMENT DATES                                                            F: 01494 431571                             F: 0118 9512161
All taxable profit limits are proportionately reduced where there                                                                                 E: amersham@wilkinskennedy.com              E: reading@wilkinskennedy.com
are associated companies.                                            Income tax
                                                                     1st payment on account            31/01/09              31/01/08             CAMBRIDGE                                   ROMSEY
CAPITAL ALLOWANCES                                                   2nd payment on account            31/07/09              31/07/08             T: 01223 301166                             T: 01794 515441
Motor cars                            20%     on reducing balance    Balancing payment                 31/01/10              31/01/09             F: 01223 462054                             F: 01794 830705
(Other than low emission and                  (maximum £3,000)                                                                                    E: cambridge@wilkinskennedy.com             E: romsey@wilkinskennedy.com
electrically propelled cars)                                         Partnerships
                                                                     1st payment on account            Individual partners                        EGHAM (HEATHROW)                            SOUTHEND-ON-SEA
Plant and machinery                                                  2nd payment on account            have tax payment                           T: 01784 435561                             T: 01702 348646
Annual Investment Allowance                                          Balancing payment                 dates as above                             F: 01784 430584                             F: 01702 330148
for the first £50,000 of                                                                                                                          E: egham@wilkinskennedy.com                 E: southend@wilkinskennedy.com
expenditure (except motor cars)       100%                           Capital gains tax                 31/01/10              31/01/09
Plant & machinery integral                                           Inheritance tax                                                              GUILDFORD                                   WINCHESTER
to a building                         10%     on reducing balance    Normally 6 months after end of month in which death or chargeable            T: 01483 306318                             T: 01962 852263
                                                                                                                                                  F: 01483 565384                             F: 01962 841197
Thermal insulation (industrial                                       transfer occurs.
                                                                                                                                                  E: guildford@wilkinskennedy.com             E: winchester@wilkinskennedy.com
& commercial buildings)               10%     on reducing balance    PAYMENTS ON ACCOUNT
Writing down allowances               20%     on reducing balance    The payments on account under Self Assessment are normally                   HERTFORD                                    FALKLAND ISLANDS
Long life assets                      10%*    on reducing balance    calculated as one half of the previous year’s final tax liability. In some   T: 01992 550847                             T: 00500 22918
                                                                                                                                                  F: 01992 554515                             F: 00500 22918
Other allowances                                                     circumstances a claim can be made to reduce the payments on                  E: hertford@wilkinskennedy.com
Industrial buildings & hotels         3%      of cost per annum      account. Payments on account are not required if the previous year’s
Agricultural buildings                3%      of cost per annum      tax liability is below a de minimis amount.
Business renovation allowance         100%                           RECORD KEEPING                                                               Subject to amendment by 2008 Finance Act.
Electrically propelled cars           100%                           There is a statutory requirement under Self Assessment to keep
Energy-saving equipment               100%                           documents and records to support the entries on income tax and               ASSOCIATE OFFICES WORLDWIDE
Enterprise zone buildings             100%                           partnership returns. The time period for keeping such records depends        Registered to carry on audit work and regulated for a range of
Low emission cars                     100%                           on the taxpayer’s circumstances. Financial penalties may apply if            investment business activities by the Institute of Chartered Accountants
Qualifying flat conversions           100%                           proper records are not maintained.                                           in England and Wales.
Research & development                100%
Water technology equipment            100%                           CIVIL PARTNERSHIPS
                                                                                                                                                                 A Member of IAPA
                                                                     Registered same-sex couples are treated for tax purposes in the same                        (International Association                     A Member of the
*The reduced allowance applies generally to businesses spending
more than £100,000 p.a. on long life assets.
                                                                     way as married couples.                                                                     of Practising Accountants)                     European Network   www.wilkinskennedy.com

				
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