Tax Year 2015/16
Income Tax
Tax rates are:
0% between £0 and £10,600
20% between £10,600 and £42,385
40% between £42,385 and £150,000
45% above £150,000
Personal allowance:
£10,600 aged under 75
£10,660 aged 75 and over
Note 1 – where income exceeds £100,000 the personal allowance is reduced by £1 for every £2 of income above £100,000
Note 2 – from 6.4.15 married couples and civil partners will be able to transfer up to £1,060 of their personal allowance to their spouse where both people don’t pay above the 20% rate. Please use the following link if you would like to register for this www.gov.uk/marriage-allowance
National Insurance
Self-employed
Class 2’s £2.80 per week but can be exempt if profits below £5,965
Class 4’s 9% between £8,060 and £42,385
Class 4’s 2% above £42,385
Employees
Class 1’s 12% between £155 and £815 per week
Class 1’s 2% above £815 per week
Employers
Class 1’s 13.8% above £156 per week
Please note that self-employed class 2’s for 2015/16 will be paid in January 2017
Corporation Tax
From 1 April 2015 there will be a single rate of corporation tax of 20%
VAT
Compulsory registration if taxable supplies are above £82,000 within the previous 12 months. The de-registration threshold is £80,000
The flat rate scheme can be opted into where turnover is £150,000 or less and the scheme must be left if turnover goes above £230,000
The cash accounting scheme can be used where turnover is less than £1.35m and the scheme must be left if turnover goes above £1.6m
Capital Allowances
The annual investment allowance remains at £500,000 until 31.12.15. The chancellor will announce the new allowance in the autumn statement
Writing down allowances remain at 18%
There are special rules for cars:
Cars with CO2’s up to 75g/km 100%
Cars with CO2’s between 75g/km and 130g/km 18%
Cars with CO2’s above 130g/km 8%
For leased cars above 130g/km there is a 15% disallowance for tax
Capital Gains Tax
The annual allowance for individuals increases to £11,100 from 6.4.15
The CGT rates are as follows:
Where normal income + gains are less than £42,385 18%
Where normal income + gains are more than £42,385 28%
For sales of businesses up to £10m of lifetime gains 10%
Inheritance Tax
The nil rate band of £325,000 (£650,000 for married couples and civil partners) remains the same. The rate of tax remains at 40%.
