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Tax rates and allowances

Here you will find this year's and last year's tax allowances. Please contact us to make sure that you have got the correct information.

    2015/16 2014/15
Income Tax      
Personal Allowance Under 65 £10,600 £10,000
  65 to 74 £10,600 £10,500
  75 and over £10,660 £10,660
  Transferable tax allowance £1,060 Nil
  Blind person's allowance £2,290 £2,230
Tax Rates      
Savings starting rate band to   £5,000 £2,880
Savings starting tax band rate   0% 10%
Basic rate band   £31,785 £31,865
Basic tax rate   20% 20%
Tax on UK Dividends within starting and basic rate bands   10% 10%
Higher rate - taxable income over   £31,785 £31,865
Higher tax rate   40% 40%
UK Dividend rate   32.5% 32.5%
Additional Rate - taxable income over   £150,000 £150,000
Higher tax rate   45% 45%
UK Dividend rate   37.5% 37.5%


Corporation Tax    
Corporation tax rates and bands are as follows:    
Financial Year to 31 March 2016 31 March 2015
Taxable Profits    
First £300,000 20% 20%
Next £1,200,000 20% 21.25%
On profits over £1,500,000 20% 21%
Tax credits on Dividends 10% 10%
Marginal relief fraction 1/400 1/400
Corporation Tax Payable    
For small and medium sized companies
- Nine months and 1 day after the end of the accounting period


Mileage Allowances    
For employees using their own transport during 2015/16    
The approved maximum tax and national insurance free mileage allowances for employees using their own transport for business are as follows:
Flat Rate First 10,000 Miles Miles over 10,000
Car 45p 25p
Motorcycle 24p 24p
Bicycle 20p 20p
Income Tax and NICs are due when allowances exceed these rates. Employees can claim tax relief on any shortfall.
Rates of up to 5p per mile, per passenger, are also tax and NIC free when paid for the carriage of fellow employees on the same business trip.


Value Added Tax      
From 1 April 2016
Standard Rate 20%
Standard rate VAT fraction 1/6
Reduced rate 5%
Reduced rate VAT fraction 1/21
Taxable Turnover Limits  
Registration - last 12 months or next 30 days over £82,000
Deregistration - next 12 months under £80,000
Cash accounting scheme - registration up to £1,350,000
Optional flat rate scheme - registration up to £150,000
Annual accounting scheme - registration up to £1,350,000



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