2015/2016 Tax Rates and Allowances

Income tax
  2015/16 2014/15
Starting rate 10% £2,880 £2,880
Basic rate 20% £31,785 £31,865
Higher rate 40% (32.5% for dividends)

£31,786-

£150,000

£31,866 - £150,001
Additional rate 45% (37.5% for dividends) £150,001+ £150,001+
Savings income rate 20% 20%
Personal Allowances
  2015/16 2014/15
Under 65 £10,600 £10,000
If born between 6 April 1938 and 5 April 1948* £10,600 £10,500
If born before 6 April 1938* £10,660 £10,660
Income limit for age-related allowances £27,000 £27,000
* Reduced by £1 for every £2 above income limit, but will not reduce below basic Personal Allowance unless income over £100,000
 
Pensions
  100% of net relevant earnings or £3,600 if higher

Annual allowance

100% of net relevant earnings or £3,600 if higher

capped at:

£40,000

2015/16
Note: Ability to utilise unused annual allowances of up to £50,000 per year for previous 3 tax years if member of defined benefit or contribution scheme in
Lifetime limit £1.25 million
 
Amounts exceeding lifetime limit taxed at 55% if extracted as a lump sum, or 25% if not
 
Inheritance Tax
Exempt transfers:
Gifts to UK domiciled spouse
Gifts to charity
Overseas domiciled spouse up to £325,000
Annual exemption £3,000
Small gifts £250
Wedding gifts - £5000 child, £2500 grandchild or remoter issue, £1000 other
Non UK assets held by a non domiciled individual
Nil rate band: £325,000 (14/15 £325,000)
Rate of tax at death 40%*
*36% where 10% of estate left to charity
Lifetime tax rate 20%
No tax on transfers to individuals unless death within 7 years
Reduced tax charge on gifts made when death is within 7 years
Years:
0-3 3-4 4-5 5-6 6-7
% taxable
100 80 60 40 20
Capital Gains Tax
  2015/16 2014/15
Individual Exemption £11,100 £11,000
Chattels Exemption £6,000 £6,000
Trusts exemption £5,550 £5,500
Transfers between husband and wife living together are exempt.
Main Rate 28% 28%
Basic Rate 18% 18%
Entrepreneurs Rate* 10% 10%
* Available on first £10 million (of eligible gains in lifetime
 
Corporation Tax
Year commencing 1 April 2015 1 April 2014
Profits    
£0- £300,000 20% 20%
£300,000- £1,500,000 20.00% 21.3%
£1,500,001+ 20% 21%
NB: Associated companies reduce band levels
Main Capital Allowances
Motor cars (based on CO2 emissions)
Less than 75/km CO2 - 100%;
75-130g/km CO2 - 18% rb;
More than 130g/km CO2 - 8% rb
 
Plant & Machinery * - 18% rb
Computer Equipment * - 18% of rb
 
Integral features - 8% rb
Goodwill - 4%
   

* Annual Investment Allowance- 100% allowance on certain capital expenditure up to £25,000 pa to April 2014 £500,000 thereafter.

 

Value Added Tax
Standard Rate
From 1st January 2015 20.00%
   
VAT fraction
From 1st January 2015 1/6
   
Turnover registration limit £82,000
Turnover deregistration limit £80,000
Cash/annual accounting registration limit £1.35m excl. VAT
Cash/annual accounting £1.6m excl. VAT
Flat rate scheme income £150,000 excl. VAT
Flat rate scheme income deregistration limit £230,000 incl. VAT
VAT Scale Charge: Now based upon the CO2 Emissions of the vehicle concerned
NI Contributions
2015/16
Class 1 Employer Employee
Weekly earnings % of all earnings
£0 - £112 NIL NIL
£113-155 0.00% 0%
£156 - £815 13.80% 12%
Over £815 13.80% 2%
The above rates apply to those not contracted out of S2P.
Class 1A Employer 13.80%
Class 2* S/Employed £2.80 pw
Class 3 Voluntary £14.10 pw
Class 4 S/Employed  
  £0-£8,060 0%
  £8,061 - £42,385 9%
  Over £42,385 2%
* Payable on net earnings over £5,965 (14/15 £5,885)
Vehicle Benefits
Chargeable on employees and directors earning £8,500 or over (including benefits)
Car Benefit*: This is now calculated as a percentage of the original list price of the vehicle.

Car Fuel Benefit*: This is now calculated as a percentage of a fixed sum of £22,100.

* Percentage used will be dependent on the level of CO2 vehicle emissions
Van benefit per vehicle: £3,150 if there is any private use. Travel between home and work is no longer considered private use
Van Fuel Benefit: £594
 
Mileage Allowances
The maximum tax-free mileage allowances for employees using their own cars for business are as follows:
2015/16 First 10,000 Miles 10,000+ miles
Car & Van 45p 25p
Motorcycle 24p 24p
Bicycle 20p 20p
Notes: 1 Payments in excess of approved rates are taxable 2 Where payments are made at rates less than the approved rates, employees can claim tax relief on shortfall