- Income Tax
- Capital Gains Tax
- Corporation Tax
- Main Capital Allowances
- Value Added Tax
- Inheritance Tax
- Vehicle Benefits
- Mileage Allowances
- National Insurance Contributions
- Key Dates & Deadlines
- Pension Premiums
- Savings and Investments
- Stamp Taxes
2013/14 Tax Rates Information is for guidance only and professional advice should be obtained before acting on any information contained as no responsibility can be accepted for loss occasioned as a result of action taken or refrained from in consequence of its contents.
|Income tax rates||Note||2013/14||2012/13|
|Basic rate band - income up to||£32,010||£34,370|
|Starting rate for savings||*10%||*10%|
|Dividend ordinary rate||10%||10%|
|Higher rate - income over||£32,010||£34,370|
|Dividend upper rate||32.5%||32.5%|
|Additional rate - income over||£150,000||£150,000|
|Dividend additional rate||37.5%||42.5%|
|* Starting rate is for savings income up to the starting rate limit of £2,790 (£2,710) within the basic rate band. The rate applies to any balance of the limit remaining after allocating taxable non-savings income.
|For interest in possession trusts on all income, and other trusts on the first £1,000 of income ("standard rate band"):|
|dividend ordinary rate||5||10%||10%|
|Income of other trusts above £1,000 is taxed at the special trust rates:|
|rate applicable to trusts||45%||50%|
|dividend trust rate
|Personal allowance (PA)|
|Born after 5 April 1948 / under 65 †||1,4||£9,440||† £8,105|
|Born after 5 April 1938 and before 6 April 1948 / 65-74 †||1,2,4||£10,500||† £10,500|
|Born before 6 April 1938/ 75 and over †||1,2,4||£10,660||† £10,660|
|Blind person's allowance||£2,160||£2,100|
Married couple's allowance (MCA)
|Either partner born before 6 April 1935 (relief restricted to 10%)||1,3,4||£7,915||£7,705|
|Venture Capital Trust (VCT) up to||£200,000||£200,000|
|Enterprise Investment Scheme (EIS) up to||£1,000,000||£1,000,000|
|Seed Enterprise Investment Scheme up to||£100,000||£100,000|
|Golden Handshake max.||£30,000||£30,000|
|Rent a Room - exempt on gross annual rent up to||£4,250||£4,250|
|Construction Industry Scheme deduction rate:|
|Higher (not registered)||30%||30%|
- Ages are as the end of the tax year.
- The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £26,100 (£25,400) until the basic allowance is reached.
- Similar limits apply to the married couple's allowance. The reduction in allowance is subject to a minimum level of £3,040. (For couples married before 5 December 2005, only the husband's income is taken into account. For those married on or after 5 December 2005 or in a civil partnership, only the higher earner’s income is taken into account).
- The personal allowance, including the minimum age-related allowance, is reduced by £1 for every £2 that net adjusted income exceeds £100,000.
- Where there are several trusts created by the same settlor, the "standard rate band" is divided equally between them, subject to a minimum band of £200 for each trust.
|Capital gains tax rates and bands for 2013/14|
|On chargeable gains|
Total taxable gains and income:
|- most trustees||£5,450|
|(proceeds per item or set)||£6,000|
- Transfers between husband and wife or civil partners living together are generally exempt.
Capital gains of all trusts for 2013/14 are taxed at the rate of 28%. Where there are several trusts created by the same settlor, the annual exemption is divided equally between them, subject to a minimum exemption of £1,090 for each trust.
Corporation tax rates and bands are as follows:
|Financial Year to||31 March 2013||31 March 2012|
Plant and Machinery:
|Investment for use in Enterprise Zones, energy saving and environmentally beneficial equipment, new zero-emission goods vehicles, low CO2 emission (up to 95g/km) cars, natural gas/hydrogen refuelling equipment: First year allowance.||
|Annual investment allowance (AIA) – on first £250,000 of investment (excludes cars and other expenditure already qualifying for 100% FYA)||100%*|
|Writing down allowance on expenditure not qualifying for AIA or FYA:|
|Long-life assets, integral features of buildings, cars over 130g/km||8%|
|Other plant and machinery||18%|
|Business premises renovation: max initial allowance||100%|
* Transitional rules may apply
|From||1 April 2013|
|Taxable Turnover Limits|
|Registration - last 12 months or next 30 days over||£79,000 from 1 April 2013|
|Deregistration - next 12 months under||£77,000 from 1 April 2013|
|Cash accounting scheme - up to||£1,350,000|
|Optional flat rate scheme - up to||£150,000|
|Annual accounting scheme - up to||£1,350,000|
Where businesses wish to reclaim the input VAT on fuel which has some degree of private use, they must account for output VAT on a scale charge. The table shows the VAT chargeable for quarters commencing on or after 1 May 2013.
VAT on fuel for private use in cars
|VAT on charge
|Up to 75||168||28.00|
|95 - 99||168||28.00|
|100 - 104||168||28.00|
|105 - 109||168||28.00|
|110 - 114||168||28.00|
|115 - 119||168||28.00|
|120 - 124||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|
Chargeable on employees earning £8,500 or over (including benefits), and directors.
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then subject to Taper Relief:
|Years before death||0-3||3-4||4-5||5-6||6-7|
|Tax reduced by||0%||20%||40%||60%||80%|
|- business or interest therein||100%|
|- qualifying shareholdings in unquoted* companies||100%|
|- land, buildings, machinery, or plant used by transferor's controlled company or partnership||50%|
|Agricultural property||50% or 100%|
|*Unquoted companies include those listed on AIM|
- Most transfers between spouses and civil partners.
- The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.
- Gifts of up to but not exceeding £250 p.a. to any number of persons.
- Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent or great grandparent, or up to £1,000 by any other person.
- Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
- Gifts to charities, whether made during lifetime or on death.
The taxable benefit is calculated as a percentage of the list price of the car, on the day before it was first registered, plus certain accessories. This percentage depends upon the rate at which the car emits carbon dioxide (CO2), and the fuel type.
For cars which cannot produce CO2 engine emissions under any circumstances when driven ('zero emission cars', including those powered solely by electricity), the appropriate percentage is reduced to 0%, thereby reducing the car benefit charge to nil.
For cars emitting between 1 and 75g/km the appropriate percentage is reduced to 5% (8% for diesel) for 5 years from 6 April 2010.
You can find the appropriate percentage for 2013/14 using the following table:
|Petrol %||Diesel %|
|Up to 75||5||8|
|215 and above||35||35|
How to find out how much CO2 your company car emits – see:
Reliable emissions data is not widely available for cars registered before 1 January 1998. For them, the following taxable percentages apply, regardless of fuel type:
|Engine capacity||Taxable %|
|Up to 1400cc||15%|
|1401 - 2000cc||22%|
The taxable car fuel benefit, for 2013/14, is calculated by applying the CO2 based car benefit percentage to the car fuel benefit charge multiplier of £21,100.
If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due.
|Fuel-Only Mileage Rates|
|HMRC advisory mileage rates at the time of the Budget for employee private mileage reimbursement or employer reimbursement of business mileage in company cars are:|
|1400cc or less||15p||10p|
|1401cc - 2000cc||18p||12p|
|1600cc or less||13p|
|1601cc - 2000cc||15p|
Example: A company car driver has a car which, on the day before it was first registered, had a list price of £21,000. It runs on petrol, and emits 177 g/km of CO2.
If we assume the driver pays tax at 40%, the 2013/14 tax bill on the car is: £21,000 x 27% x 40% = £2,268
If the employer provides any fuel used for private journeys and is not reimbursed for the cost, the 2013/14 tax bill for the fuel is: £21,100 x 27% x 40% = £2,279.
The taxable benefit for the unrestricted use of company vans is £3,000 plus a further £564 of taxable benefit if fuel is provided by the employer for private travel.
|Van and fuel charge||Van||Fuel||Total|
|Tax (20% taxpayer)||£600||£112.80||£712.80|
|Tax (40% taxpayer)||£1,200||£225.60||£1,425.60|
|Tax (45% taxpayer)||£1,350||£253.80||£1,603.80|
|Employer's class 1A NICs||£414||£77.83||£491.83|
Van drivers can avoid a benefit charge if they agree not to use the van for personal journeys. Driving to and from work is acceptable so long as there is a reasonable amount of business use.
The flat rate of £3,000 is reduced to nil for vans which cannot produce C02 engine emissions under any circumstances when driven. There is no fuel benefit for such vans.
It is quite normal practice for employees to be reimbursed at a reasonable mileage rate for business use of their own vehicles. The income tax and national insurance contributions (NICs) position is as follows:
|A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows:
|Cars and vans:
on the first 10,000 miles in the tax year
on each additional mile above this
45p per mile
25p per mile
|Motorcycles||24p per mile|
|Bicycles||20p per mile|
It is no longer possible to make a claim for tax relief based on the actual receipted bills, nor claim capital allowances or interest on loans related to car purchases.
Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.
Rates of up to 5p per mile, per passenger, are also tax- and NICs- free when paid for the carriage of fellow employees on the same business trip. This now also covers volunteers who drive for hospital car services etc, even though they are not strictly employees.
|Class 1 (not contracted out)||Employer||Employee|
|Payable on weekly earnings of|
|Up to £107 (lower earnings limit)||Nil||Nil|
|£107 - £144 (employers' earnings threshold)||Nil||Nil|
|£144.01 - £146 (employees' earnings threshold)||13.8%||Nil|
|£146.01 - £770 (upper accrual point)||13.8%||12%|
|£770.01 - £817 (upper earnings limit)||13.8%||12%|
|Over state retirement age, the employee contribution is generally Nil|
|Class 1A (on relevant benefits)||13.8%||Nil|
|Class 1B (on PAYE settlement arrangement)||13.8%||Nil|
|Class 2 (Self employed)||£2.65 per week|
|Limit of net earnings for exception||£5,595 per annum|
|Class 3 (Voluntary)||£13.25 per week|
|Class 4* (Self employed on profits)|
|£7,605 - £42,475||9%|
|Excess over £42,475||2%|
|*Exemption applies if state retirement age was reached by 6 April 2012.|
For those earning between £107 per week and £770 per week, employers receive a rebate of 3.4% on contracted out salary related schemes, and employees a rebate of 1.4%.
|Income Tax (including Class 4 NIC)|
|31 July 2013||2012/13 second payment on account|
|31 January 2014||2012/13 balancing payment, and
2013/14 first payment on account
|31 July 2014||2013/14 second payment on account|
|31 January 2015||2013/14 balancing payment, and
2014/15 first payment on account
|Class 1A NICs|
|19 July 2013||2012/13 payment due|
|Capital Gains Tax|
|31 January 2014||2012/13 Capital Gains Tax|
|31 January 2015||2013/14 Capital Gains Tax|
|9 months and one day after the end of the accounting period|
|6 months after the end of the month of death.|
|For chargeable lifetime transfers between 6 April and 30 September, due date is 30 April in the following year.|
|For chargeable lifetime transfers between 1 October and 5 April, due date is six months after the end of the month in which the transfer was made.|
|Latest Filing/Issuing Deadlines - 2012/13 PAYE Returns|
|19 May 2013||P14, P35, P38 and P38A - file online.|
|31 May 2013||Issue P60s to employees.|
|6 July 2013||P9D, P11D and P11Db - also issue copies to employees
Form 42 (reporting of employment-related securities)
|2013 Self Assessment Tax Return (SATR)|
|31 October 2013||Last filing date - SATR Paper Version|
|30 December 2013||SATR Online if outstanding tax (less than £3,000) to be included in 2014-15 PAYE code|
|31 January 2014||Last filing date - SATR Online|
There is no financial limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual's UK relevant earnings or £3,600.
If total pension input exceeds the annual allowance of £50,000 there may be a tax charge on the excess.
|Maximum age for tax relief||74|
|Minimum age for taking benefits||55|
|Lifetime allowance charge - lump sum paid||55%|
|Lifetime allowance charge - monies retained||25%|
|on cumulative benefits exceeding||£1,500,000*|
|Maximum tax-free lump sum||25%*|
*Subject to transitional protection for excess amount.
Note - For most pension arrangements, the total pension input is the aggregate of contributions paid into all the individual's pension savings during the relevant pension input period (PIP). Contributions should be the gross amount (i.e. including the tax relief attaching to the contributions). The PIP is usually the year to the anniversary date which falls within the relevant tax year. There are special rules for defined benefit arrangements.
|Individual Savings Accounts (ISAs)|
|Overall investment limit £11,520|
|Including cash maximum of £5,760|
- Investments in ISAs are free of income tax and capital gains tax.
- Those aged 16-17 can invest in a cash ISA.
- ISAs allow you to take your money out at any time without losing tax relief and furthermore you are not required to declare income and capital gains from ISA savings.
- The annual investment limit for a Junior ISA is £3,720.
Individuals are able to claim higher rate relief on cash gifts and payments to charities under gift aid. Basic rate tax is treated as having been deducted, so you must pay enough tax for the year to cover the tax witheld from your Gift Aid payment.
Special tax reliefs apply to gifts to charities of certain types of shares and securities, or land and buildings.
Individuals have the opportunity to make a claim for charitable donations made in one tax year to be treated as if they had been made in the previous tax year. For example, a request could be made for Gift Aid payments made between 6 April 2013 and the date that the 2013 return is filed to be treated as if they were made in the year to 5 April 2013. This would mean that a payment could rank for higher rate tax relief for 2012/13, even if the donor is liable at basic rate only in 2013/14. The request would normally be made by completing the relevant box in the 2013 tax return, and the opportunity to carry back donations is lost once that return has been filed (provided this is no later than 31 October 2013 or 31 January 2014, as appropriate). It is not possible to amend the 2013 tax return in order to carry back a donation.