Tax Data Bank For Small Businesses: 2015/16
Income Earned As Salary:
| Annual Earnings | Income Tax | Employees NI | Total Deducted | Your Employer Also Pays |
| £ Nil – £8,060 | 0% | 0% | 0% | 0% |
| £8,061 – £10,600 | 0% | 12% | 12% | 13.8% |
| £10,601 – £42,385 | 20% | 12% | 32% | 13.8% |
| £42,386 – £100,000 | 40% | 2% | 42% | 13.8% |
| £100,001 – £121,200 | 60%* | 2% | 62% | 13.8% |
| £121,201 – £150,000 | 40% | 2% | 42% | 13.8% |
| £150,001 + | 45% | 2% | 47% | 13.8% |
Income as Self Employed (including a partnership):
| Annual Earnings | Income Tax | Class 4 NI | Total Deducted | Class 2 NI |
| £ Nil – £8,060 | 0% | 0% | 0% | £2.75 pw |
| £8,061 – £10,600 | 0% | 9% | 9% | £2.75 pw |
| £10,601 – £42,385 | 20% | 9% | 29% | £2.75 pw |
| £42,386 – £100,000 | 40% | 2% | 42% | £2.75 pw |
| £100,001 – £121,200 | 60%* | 2% | 62% | £2.75 pw |
| £121,201 – £150,000 | 40% | 2% | 42% | £2.75 pw |
| £150,001 + | 45% | 2% | 47% | £2.75 pw |
Earnings taken through a limited company assuming you have a salary of £10,000pa, the balance taken as dividends:
| Annual Earnings | Corporation Tax | NI/Income tax | Total |
| £ Nil – £8,060 | 0% | 0% | 0% |
| £8,061 – £10,600 | 0% | 12% | 12% |
| £10,601 – £42,385 | 20% | 0% | 20% |
| £42,386 – £100,000 | 20% | 20% | 40% |
| £100,001 – £121,200 | 20% | 40% | 60% |
| £121,201 – £150,000 | 40% | 0% | 40% |
| £150,001 + | 45% | 0% | 45% |
*Although the tax rate remains at 40%your personal allowance is gradually withdrawn meaning you pay additional tax of 60p for every £1 earned.
Student loan deductions of up to 9% on earnings over £16,910.
Value Added Tax
| Standard Rate | 20% |
| Reduced Rate | 5% |
| Turnover Limit (2014/15) | £81,000 |
| Deregistration Limit | £79,000 |
| VAT fraction | 1/6 |
Stamp Duty Land Tax (SDLT)
SDLT is charged at different rates depending on the portion of the purchase price that falls into each rate band (UK excluding Scotland).
| Residential Property | % |
| £0 – £125,000 | 0 |
| £125,001 – £250,000 | 2 |
| £250,001 – £925,000 | 5 |
| £925,001 – £1.5 million | 10 |
| £1.5 million + | 12 |
| Non-residential |
|
| £0 – £15,000 | 0 |
| £15,001 – £250,000 | 1 |
| £250,001 – £500,000 | 3 |
| £500,000 + | 4 |
Inheritance tax
| Standard Threshold | 325,000 |
| Combined* | 650,000 |
| Standard Rate** | 40% |
*Combined lifetime maximum for married couples and civil partners
**On death or within 7 years of death subject to a taper reduction between 3 and 7 years before death. Exemptions such a business property may apply, please contact us for a detailed review.
Capital Allowances
Annual Investment Allowance – £500,000 pa to 31 December 2015; £25,000 pa from 1 January 2016
Please contact us if you are planning to make capital expenditure in early 2016 to check that sufficient relief will be available in that transitional period.
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% |
Capital Gains Tax: Annual exempt amount – individuals £11,100
| Standard Rate Tax Payers | 18% |
| Higher Rate Tax Payers | 28% |
Entrepreneur’s relief – qualifying gains will be taxed at 10%. Claims may be made on more than one occasion up to a “lifetime” total of £10 million. Gains are ‘top sliced’ therefore a large gain to a basic ate tax payer might be taxed at 28%. Gains within a company are subject to corporation tax.
Key Dates and Deadlines
| Tax year end date for Income Tax and personal Capital Gains Tax | 5th April |
| Corporation Tax | Payment due 9 months and a day after the end of the accounting period.
An accounting period ends on the earlier of 12 months and the business’s balance sheet date |
| Company Accounts | 9 months after the year end |
| Capital Gains Tax | 31st January Following |
| Income Tax | Filing deadline 31 January Balancing payment 31 January First payment on account 31 January Second payment on account 31 July |
| VAT | 1 month and 1 week following quarter end |
Corporation Tax
| Financial year to | 31 March 2016 | 31 March 2015 |
| First £300,000 | 20% | 20% |
| Next £1,200,000 | 20% | 21.25% |
| Over £1,500,000 | 20% | 21% |
National Minimum Wage from October 2014 (to increase from October 2015)
| Age | £/hour |
| 21 and over | 6.50 |
| 18 to 20 | 5.13 |
| Under 18 | 3.79 |
| Apprentice | 2.73 |
