Keith Sandy AFA

Income Tax Rates

Taxable bands	1999-00 (£)
Starting rate 10 per cent	0-1 500
Basic rate 23 per cent	1 501-28 000
Higher rate 40 per cent	Over 28 000

Taxable bands	2000-01 (£)
Starting rate 10 per cent	0-1 520
Basic rate 22 per cent	1 521-28 400
Higher rate 40 per cent	Over 28 400

Taxable bands	2001-02 (£)
Starting rate 10 per cent	0-1 880
Basic rate 22 per cent	1 881-29 400
Higher rate 40 per cent	Over 29 400

Taxable bands	2002-03 (£)
Starting rate 10 per cent	0-1 920
Basic rate 22 per cent	1 921-29 900
Higher rate 40 per cent	Over 29 900

Taxable bands	2003-04 (£)
Starting rate 10 per cent	0-1 960
Basic rate 22 per cent	1 961-30 500
Higher rate 40 per cent	Over 30 500

Back to Top

Allowances and Reliefs

	1999-00 (£)	2000-01 (£)	2001-02 (£)	2002-03 (£)	2003-04 (£)
Personal allowance Personal allowance: age 65-74 Personal allowance: age 75 and over	4 335 5 720 5 980	4 385 5 790 6 050	4 535 5 990 6 260	4 615 6 100 6 370	4 615 6 610 6 720
Married couples allowance: age 65 before 6 April 1935 Married couples allowance: age 75 or more Married couples allowance: minimum amount	5 125 5 195 1 970	5 185 5 255 2 000	5 365 5 435 2 070	5 465 5 535 2 110	5 565 5 635 2 150
Income limit for age - related allowances	16 800	17 000	17 600	17 900	18 300
Widows bereavement allowance	1 970	2 000	N/A	N/A	N/A
Children's tax credit			5 200	5 290	*abolished
Blind persons allowance	1 380	1 400	1 450	1 480	1 510

*replaced by Tax credits

Back to Top

Capital Gains Tax

	1999-00 (£)	2000-01 (£)	2001-02 (£)	2002-03 (£)	2003-04 (£)
Capital gains tax annual exempt amount
Individuals etc	7 100	7 200	7 500	7 700	7 900
Other trustees	3 550	3 600	3 750	3 850	3 950

Back to Top

Capital Allowances

	Writing down allowance
Plant and Machinery	25% (40% first year allowance)
Motor Cars	25% £3000 max
Industrial Buildings	4%
Agricultural Buildings	4%
Hotels	4%
Information & Communications Technology	25% (100% first year allowance)

First year allowances for information and communications technology are at the rate of 100% for small businesses.

Small businesses if less than 50 employees turnover less than 2.8M and total assets less than 1.4M.

Back to Top

Personal Pensions

Contribution limit- % of net relevant earnings

Age on 6 April 1999	PPS	RAP
35 or less	17.5	17.5
36-45	20.0	17.5
46-50	25.0	17.5
51-55	30.0	20.0
56-60	35.0	22.5
61-74	40.0	27.5

The details based on 1999/2000 but are unchanged for the new tax year 2000/2001.

	1999/2000	2000/01	2001/02	2002/03	2002/03
	£	£	£	£	£
Pension Schemes Earning Cap	90,600	91,800	95,400	97,200	99,000

Back to Top

Inheritance Tax

Changeable Transfers

Death Rate	Lifetime Rate	1999/00	2000/01	2001/02	2002/03	2003/04
%	%	£000s	£000s	£000s	£000s	£000s
Nil	Nil	0-231	0-234	0-242	0-250	0-255
40	20	Over 231	Over 234	Over 242	Over 250	Over 255

Back to Top

Corporation Tax

Corporation tax profits	1999-00 (£)


Small companies rate 20 per cent	0-300 000
Marginal relief	300 001-1 500 000
Main rate 30 per cent	1 500 001 or more

Corporation tax profits	2000-01 (£)
Starting rate 10 per cent	0-10 000
Marginal relief	10 001-50 000
Small companies rate 20 per cent	50 001-300 000
Marginal relief	300 00-1 500 000
Main rate 30 per cent	1 500 001 or more

Corporation tax profits	2001-02 (£)
Starting rate 10 per cent	0-10 000
Marginal relief	10 001-50 000
Small companies rate 20 per cent	50 001-300 000
Marginal relief	300 00-1 500 000
Main rate 30 per cent	1 500 001 or more

Corporation tax profits	2002-03 (£)
Starting rate zero	0-10 000
Marginal relief	10 001-50 000
Small companies rate 19per cent	50 001-300 000
Marginal relief	300 00-1 500 000
Main rate 30 per cent	1 500 001 or more

Corporation tax profits	2003-04 (£)
Starting rate zero	0-10 000
Marginal relief	10 001-50 000
Small companies rate 19per cent	50 001-300 000
Marginal relief	300 00-1 500 000
Main rate 30 per cent	1 500 001 or more

The main rate of corporation tax for 2003-04 will be 30 per cent.

Back to Top

Car and Fuel Benefits

Car fuel scale charge

		Up to 1400cc	1401-2000cc	Over 2000cc
		£	£	£
2002/03	-petrol	2,240	2,850	4,200
	-diesel	2,850	2,850	4,200
2001/02	-petrol	1,930	2,460	3,620
	-diesel	2,460	2,460	3,620
2000/01	-petrol	1,700	2,170	3,200
	-diesel	2,170	2,170	3,200
1999/00	-petrol	1,210	1,540	2,270
	-diesel	1,540	1,540	2,270

The fuel scale charge is reduced to nil only if the employee pays for all private fuel.

Car and Fuel Benefits 2003/04

To calculate the benefit charge on free fuel the percentage figure will be multiplied against a set figure for the year. For the year 2003/04 the set figure will be £14,400.
For example
A car that has CO2 emissions of 195g/km
Percentage used to calculate the company car tax charge for 2003/04 is 23%. The fuel scale charge will be 14,400 x 23% = £3,312.

To calculate the car benefit charge you will need to know the price of the car for tax purposes and the approved CO2 emissions figure for the particular vehicle.

Example 1

Petrol car with an approved CO2 emissions figure. The price of the car for tax purposes is £15,000. The approved CO2 emissions figure is 183g/ km.
* Round 183 down to 180.
* Look up percentage of the car's price to be taxed for 180g/ km CO2 for the relevant year in the ready reckoner below:

Percentage charge is 20%.
*Basic car benefit charge is £15,000 x 20% = £3,000.

Example 2

Diesel car with an approved CO2 emissions figure.
The price of the car for tax purposes is £20,000. The approved CO2 emissions figure is 172g/ km.
Round 172 down to 170.
Look up percentage of car's price to be taxed for the relevant year in the ready reckoner below:

Percentage charge is 18%.
* Add 3% diesel supplement, so percentage charge becomes 21%.
* Basic car benefit charge is £20,000 x 21% = £4,200.

CO2 emissions in grams per kilometre			Percentage of car's price to be taxed
2002-03	2003-04	2004-05
165	155	145	15*
170	160	150	16*
175	165	155	17*
180	170	160	18*
185	175	165	19*
190	180	170	20*
195	185	175	21*
200	190	180	22*
205	195	185	23*
210	200	190	24*
215	205	195	25*
220	210	200	26*
225	215	205	27*
230	220	210	28*
235	225	215	29*
240	230	220	30*
245	235	225	31*
250	240	230	32*
255	245	235	33**
260	250	240	34***
265	255	245	35****

Diesel Supplements
* Add 3% if car runs solely on diesel.
** Add 2% if car runs solely on diesel.
*** Add 1% if car runs solely on diesel.
**** Maximum charge, so no diesel supplement.

The basic car benefit charge will be the car's price multiplied by the percentage charge for the CO2 emissions band in which the car falls, subject to

the addition of any diesel supplement, or
discount for cars using alternative fuels and technologies.

Back to Top

Fixed Profit Car Scheme

Income tax year	Car engine size (cc)	Rate pence per mile
		First 4000 business miles	over 4000 business miles
1999-00	up to 1000	28.0	17.0
	1001-1500	35.0	20.0
	1501-2000	45.0	25.0
	over 2000	63.0	36.0

2000-01	up to 1000	28.0	17.0
	1001-1500	35.0	20.0
	1501-2000	45.0	25.0
	over 2000	63.0	36.0

2001-02	up to 1000	40.0	25.0
	1001-1500	40.0	25.0
	1501-2000	45.0	25.0
	over 2000	63.0	36.0

From 6 April 2002, there is a new system for working out whether you have to pay tax and NICs on any payments your employer makes to you using your own vehicle for business journeys. Under the new rules, there is a maximum amount that you can recieve without paying tax. This is called an approved mileage allowance payment (AMAP) and is calculated by using approved mileage rates.
Approved mileage rates
2002-2003	First 10,000 business miles in the tax year	Each mile over 10,000 miles in the tax year
Cars and vans	40p	25p
Motor cycles	24p	24p
Bicycles	20p	20p
Passengers	5p	5p

Back to Top

Value Added Tax (VAT)

Standard Rate	17.5%
Lower Rate	5%
Annual Registration Limit-from 1 April 2001	£54,000

Back to Top

National Insurance Contributions 1999/00

Item	1999/00
Lower Earnings Limit	£66
Upper Earnings Limit	£500
Secondary Threshold	£83
Employees contributions	10%
Married Women Reduced Rate	3.85%
Employers Contribution Rates	12.2%
Class 2 Self employed Contribution	£6.55
Small Earnings Exception	£3,770
Class 3 (voluntary) Contribution	£6.45
Class 4 Contributions-Upper Profits Limit	£26,000
Class 4 Contributions-Lower Profits Limit	£7,530
Class 4-Contribution Rate	6.0%

Figures are based on weekly earnings.

Back to Top

National Insurance Contributions 2000/01

Item	2000/01
Lower Earnings Limit	£67
Upper Earnings Limit	£535
Primary Threshold	£76
Secondary Threshold	£84
Employees contributions	10% of £76.01 to £535
Employees Contracted-out Rebate	1.6%
Married Women Reduced Rate	3.85%
Employers Contribution Rates	12.2%
Employers Contracted-out Rebate	3.0% COSR 0.6% COMP
Class 2 Self employed Contribution	£2.00
Small Earnings Exception	£3,825
Class 3 (voluntary) Contribution	£6.55
Class 4 Contributions-Upper Profits Limit	£27,820
Class 4 Contributions-Lower Profits Limit	£4,385
Class 4-Contribution Rate	7.0%

Figures are based on weekly earnings.

Back to Top

National Insurance Contributions 2001/02

Item	2001/02
Lower Earnings Limit	£72 per week
Upper Earnings Limit	£575 per week
Primary Threshold	£87 per week
Secondary Threshold	£87 per week
Employees contributions	10% of £87.01 to £575 per week
Employees Contracted-out Rebate	1.6%
Married Women Reduced Rate	3.85%
Employers Contribution Rates	11.9% on earnings above £87 per week
Employers Contracted-out Rebate	3.0% COSR 0.6% COMP
Class 2 Self employed Contribution	£2 per week
Small Earnings Exception	£3,955 per year
Class 3 (voluntary) Contribution	£6.75 per week
Class 4 Contributions-Upper Profits Limit	£29,900 per year
Class 4 Contributions-Lower Profits Limit	£4,535 per year
Class 4-Contribution Rate	7.0%

Back to Top

National Insurance Contributions 2002/03

Item	2002/03
Lower Earnings Limit	£75 per week
Upper Earnings Limit	£585 per week
Primary Threshold	£89 per week
Secondary Threshold	£89 per week
Employees contributions	10% of £89.01 to £585 per week
Employees Contracted-out Rebate	1.6%
Married Women Reduced Rate	3.85%
Employers Contribution Rates	11.8% on earnings above £89 per week
Employers Contracted-out Rebate	3.5% COSR 1.0% COMP
Class 2 Self employed Contribution	£2 per week
Small Earnings Exception	£4,025 per year
Class 3 (voluntary) Contribution	£6.85 per week
Class 4 Contributions-Upper Profits Limit	£30,420 per year
Class 4 Contributions-Lower Profits Limit	£4,615 per year
Class 4-Contribution Rate	7.0%

Back to Top