Personal Tax Planning
With the tax regime becoming more complex and more emphasis being put on taxpayers’ individual responsibilities, everyone who is subject to taxation needs professional advice and support if they are to optimise their tax position and ensure they meet all the compliance requirements.
We are the tax specialists. We can provide you with year round tax advice on:
• Income tax
• Capital Gains tax
• Inheritance tax
• Rental income
• Trusts and estates
• Non-domiciliary tax issues
Personal tax rates
|Income tax allowance||2011-12||2012-13||2013-2014|
|Personal allowance (1)||£7,475||£8,105||N/A|
|Personal allowance for people born after 5 April 1948 (1)||N/A||N/A||£9,440|
|Income limit for personal allowance||£100,000||£100,000||£100,000|
|Personal allowance for people aged 65-74(1)(2)||£9,940||£10,500||N/A|
|Personal Allowance for people born between 6 April 1938 and 5 April 1948 (1) (2)||N/A||N/A||£10,500|
|Personal Allowance for people aged 75 and over (1)(2)||£10,090||£10,660||N/A|
|Personal Allowance for people before 6 April 1938 (1) (2)||N/A||N/A||£10,660|
|Married Couple’s Allowance (born before 6th April 1935 and aged 75 and over) (2) (3)||£7,295||£7,705||£7,915|
|Income limit for age-related allowances||£24,000||£25,400||N/A|
|Income limit for the allowances for those born before 6 April 1948||N/A||N/A||£26,100|
|Minimum amount of Married Couple’s Allowance||£2,800||£2,960||£3,040|
|Blind Person’s Allowance||£1,980||£2,100||£2,160|
1. The Personal Allowance reduces where the income is above £100, 000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
2. These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. The Personal Allowance for people aged 65 and over (up to and including 2012-13)and born before 6 April 1948 (from 2013-14) can be reduced below the basic Personal Allowance where the income is above £100,000.
3. Tax relief for the Married Couple’s Allowance is given at the rate of 10 per cent.
4. Income Tax rates and taxable bands.
|Starting rate for savings:10%*||£0 – £2,560||£0 – £2,710||£0 – £2,790|
|Basic rate: 20%||£0 – £35,000||£0 – £34,370||£0 – £32,010|
|Higher rate: 40%||£35,001 – £150,000||£34,371 – £150,000||£32,011 – £150,000|
|Additional rate: 50%||Over £150,000||Over £150,000||N/A|
|45% from 6 April 2013||N/A||N/A||Over £150,000|
*The 10 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits. The rates available for dividends are the 10 per cent ordinary rate, the 32.5 per cent dividend upper rate and the dividend additional rate of 42.5 per cent (the dividend additional rate is 37.5 per cent from 2013-14) .
You pay National Insurance contributions to build up your entitlement to certain state benefits, including the State Pension. The contributions you pay depend on how much you earn and whether you’re employed or self-employed. You stop paying National Insurance contributions when you reach State Pension age.
Your entitlement to certain state benefits and the amount you can get depends on your National Insurance contributions record. (In some cases it depends on your spouse or civil partner’s contributions.) These benefits include:
• State Pension
• Contribution-based Jobseeker’s Allowance
• Bereavement Allowance
• Contribution-based Employment and Support Allowance.
If you wish to know whether you have paid sufficient National Insurance contributions to date we can arrange for a pension forecast to be prepared for you which will highlight if your contributions to date are sufficient to result in a full state pension later.