2015/2016 UK Tax Data Bank For Small Businesses

Income Earned As Salary: 

Annual Earnings Income Tax EmployeesNI 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 4NI 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*Although the tax rate remains at 40%your personal allowance is gradually withdrawn meaning you pay additional tax of 60p for every £1 earned.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 JanuaryBalancing payment 31 JanuaryFirst payment on account 31 JanuarySecond 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

 

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