Tax data 2015/16

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*Although the tax rate remains at 40%your personal allowance is gradually withdrawn meaning you pay additional tax of 60p for every £1 earned.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