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Midford Accountants are based in Central London.

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Accounting Services

 

    Income Tax Rates
Income Tax Rates

 

2014/15 2013/14
Band £ Rate % Band £ Rate %
0 – 2,880 10* 0 – 2,790 10*
0 – 31,865 20** 0 – 32,010 20**
31,866 – 150,000 40*** 32.011 – 150,000 40***
Over 150,000 45**** Over 150,000 45****

 

*Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,880 (£2,790).

** Except dividends (10%).

*** Except dividends (32.5%).

**** Except dividends (37.5%).

Other income taxed first, then savings income and finally dividends.

    Income Tax Reliefs
Income Tax Reliefs

 

Personal Allowance

- born after 5 April 1948 10,000 9,440
- born after 5 April 1938 and before 6 April 1948* 10,500 10,500
- born before 6 April 1938* 10,660 10,660
(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.)
Married couple's allowance (relief at 10%)*(Either partner 75 or over and born before 6 April 1935.) 8,165 7,915
- min. amount 3,140 3,040
* Age allowance income limit(Reduce age allowance by £1 for every £2 of adjusted net income over £27,000 (£26,100).) 27,000 26,100
Blind person's allowance 2,230 2,160
     National Insurance
National Insurance

 

Employee

Employer

Earnings per week

%

Earnings per week

%

Up to £153

Nil*

Up to £153

Nil

£153.01 – £805

12

Over £153

13.8

Over £805

2

*Entitlement to contribution-based benefits retained for earnings between £111 and £153 per week.

 

Class 1A (employers) 13.8% on employee taxable benefits
Class 1B (employers) 13.8% on PAYE Settlement Agreements
Class 2 (self-employed) flat rate per week £2.75small earnings exception p.a. £5.885 p.a.
Class 3 (voluntary) flat rate per week £13.90
Class 4 (self-employed) 9% on profits between £7,956 and £41,865 plus 2% on profits over £41,865
     Tax Credits
Tax Credits

 

Working Tax Credit
Basic element – max.

1,940

1,920

Childcare element

70% of eligible costs up to £175 per week (£300 if two or more children).

Child Tax Credit (CTC)
Child element per child – max.

2,750

2,720

Family element

545

545

     Mileage Allowance Payments
Mileage Allowance Payments

 

Up to 10,000 miles

45p

Over 10,000 miles

25p

Bicycles

20p

Motorcycles

24p

 

These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

     Corporation Tax
Corporation Tax

 

 

Year to 31.3.15

Year to 31.3.14

 

Profits band

£

Rate

%

Profits band

£

Rate

%

Small profits rate

0 – 300,000

20*

0 – 300,000

20*

Marginal (small profits) rate

300,001 – 1,500,000

21.25*

300,001 – 1,500,000

23.75*

Main rate

Over 1,500,000

21*

Over 1,500,000

23*

Standard fraction  

1/400*

 

3/400*

 

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

* Different rates apply for ring-fenced (broadly oil industry) profit.

     Value Added Tax
Value Added Tax

 

Standard rate 20%
Reduced rate 5%
Annual Registration Limit – from 1.4.14 (1.4.13 – 31.3.14 £79,000) £81,000
Annual Deregistration Limit – from 1.4.14 (1.4.13 – 31.3.14 £77,000) £79,000

 

     Capital Gains Tax
Capital Gains Tax

 

 

2014/15

2013/14

Individuals

£

£

Exemption

11,000

10,900

Standard rate

18%

18%

Higher rate*

28%

28%

Trusts    
Exemption

5,500

5,450

Rate

28%

28%

*For higher and additional rate taxpayers
Entrepreneurs' Relief

The first £10m of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.