Cottrell & Co

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Income Tax

Capital Gains Tax

Pension Contributions

National Insurance

Inheritance Tax Corporation Tax VAT Car Benefits

INCOME TAX RATES

Taxable Income

Rate

Tax on Band

Cumulative tax to top of band

2000-2001 Taxable Income

Rate

Tax on Band

Cumulative tax to top of band

First £1,5000

10%

£150

£150

First £1,520

10%

£152

£152

Next £26,500

23%

£6,095

£6,245

Next £26,880

22%

£5,914

£6,066

Over £28,000

40%

 

Over £28,401

40%

 

INCOME TAX ALLOWANCES

Allowance

1999-2000

2000-2001

Personal Allowance

Personal Allowance (Age 65-74)*

Personal Allowance (Age 75 or over)*

£4,335

£5,720

£5,980

£4,385

£5,790

£6,050

Married Couple’s Allowance

Married Couple’s Allowance (Age 65 before 6th April 2000)*

Married Couple’s Allowance (Age 75 or over)*

£1,970^

£5,125^

£5,195^

Nil

£5,185¨

£5,225¨

Additional Personal Allowance

£1,970^

Nil

Widow’s Bereavement Allowance (for bereavement occurring before 6th April 2000)

£1,970¨

£2,000¨

Blind Person’s Allowance

£1,380

£1,400

* If income exceeds £16,800 for 1999-2000 or £17,000 for 2000-2001 these age related allowances are
reduced.

^ Relief restricted to tax rate of 10%.

CAPITAL GAINS TAX

1999-2000 Gains

Rate

2000-2001 Gains

Rate

Up to £7,100

Nil

Up to £7,200

Nil

Over £7,100

Gains are charged at 20% where the gains when added to total income are below the basic rate limit and 40% in excess of that limit.

Over £7,200

Gains are charged at 20% where the gains when added to total income are below the basic rate limit and 40% in excess of that limit.

ALLOWABLE PENSION CONTRIBUTIONS


Age at beginning of year

1999-2000 & 2000-2001

Retirement Annuity Plan
Percentage of Net Relevant Earnings  

Personal Pension Scheme
Percentage of Net Relevant Earnings*

35 or less

17.5%

17.5%

36-45

17.5%

20.0%

46-50

17.5%

25.0%

51-55

20.0%

30.0%

56-60

22.5%

35.0%

61 or more

27.5%

40.0%

* The rates for Personal Pension Plans are subject to a maximum net relevant earnings level of £90,600 in
1999-2000, and £91,800
in 2000-2001.

NATIONAL INSURANCE CONTRIBUTIONS 2000-2001 - EMPLOYER’S

 

Weekly

Monthly

Yearly

Lower earnings threshold

No employer’s contribution payable if earnings are less than lower earnings threshold.

£84

£365

£4,385

Weekly Contributions

Contracted In

Contracted out

If earnings exceed £84

12.2% on all earnings above £84.

9.2%* on earnings between £84 and £535; 12.2% on earnings above £535.

* The contracted out rate for "Money Purchase" Pension Schemes is 2.4% higher than the above rates
which refer to Salary Related
Pension Schemes.

NATIONAL INSURANCE CONTRIBUTIONS 2000-2001 - EMPLOYEE’S

 

Weekly

Monthly

Yearly

Lower Earnings Limit (LEL)

£67

£291

£3,484

Earnings Threshold (EET)

£76

£329

£3,952

Upper Earnings Limit (UEL)

£535

£2,310

£27,820

* There is a UEL for employees only, there is no UEL for the employer.

National Insurance Contributions are not paid if earnings are less than the EET.

Earnings

Contracted in

Contracted out

£76-£535

10% on earnings between £76 and £535.

8.4% on earnings between £76 and £535

A reduced rate of contribution me be payable by widows and some married women.

NATIONAL INSURANCE CONTRIBUTIONS 2000-2001 - OTHER

 

From April 2000

CLASS 2 (self-employed only)
Earnings over £3,825 per annum

£2.00 per week

CLASS 3 (voluntary)

£6.55 per week

CLASS 4 (self-employed on profits)
Profits between £4,385 and £27,820 per annum 7%

 

STATUTORY SICK PAY

1999-2000

Average Weekly Earnings

Weekly Rate of

Statutory Sick Pay

2000-2001

Average Weekly Earnings

Weekly Rate of

Statutory Sick Pay

Up to £65.99

£Nil

Up to £66.99

£Nil

£66.00+

£59.55

£67.00+

£60.20

STATUTORY MATERNITY PAY

1999-2000

2000-2001

Higher Weekly Rate

90% of employee’s normal weekly earnings.

90% of employee’s normal weekly earnings.

Lower Weekly Rate

£59.55

£60.20

Payable for a maximum of 18 weeks.

INHERITANCE TAX

Death Transfers from 6/4/99 to 5/4/00

Gross Cumulative Transfer

Rate

Death Transfers from 6/4/00

Gross Cumulative Transfer

Rate

Up to £231,000

Nil%

Up to £234,000

Nil%

£231,001+

40%

£234,001+

40%

No Inheritance Tax is generally chargeable on lifetime transfers. Certain gifts, including gifts into and out
of some trusts, are taxed at half death rates. Gifts within 7 years of death will be liable to tax at rates
applicable at death - subject to tapered relief as set out below:

Years Between Gift and Death

Percentage Chargeable

0-3

100%

3-4

80%

4-5

60%

5-6

40%

6-7

20%

CORPORATION TAX

 

1/4/99 to 31/3/00

1/4/00 to 31/3/01

Tax Rate

30%

30%

Starting Rate

-

10% to £10,000

Immediate Profits

-

£10,001 to £50,000

Reduction Factor

-

1/40th

Small Company Rate

20% to £300,000

20% £50,001 to £300,000

Intermediate Profits

£300,001 - £1,500,000

£300,001 to £1,500,000

Reduction Factor

1/40th

1/40th

VALUE ADDED TAX

The standard rate of VAT is 17½%.  The VAT fraction to be used when calculating
the tax element of a VAT inclusive price is 7/47.

Turnover Limit for Registration

From 1st April 1999 - £51,000

From 1st April 2000 - £52,000

VAT CAR FUEL SCALES

VAT DUE - QUARTERLY RETURNS 1999 - 2000

Cylinder Capacity

Diesel
Scale Charge

Diesel
VAT due per vehicle

Non-Diesel Fuel
Scale Charge

Non-Diesel Fuel
VAT due per vehicle

Up to 1,400cc

£196

£29.19

£212

£31.57

1,401 - 2,000cc

£196

£29.19

£268

£39.91

over 2,000 cc

£248

£36.93

£396

£58.97

VAT DUE - QUARTERLY RETURNS 2000 - 2001

Cylinder Capacity

Diese l
Scale Charge

Diesel
VAT due per vehicle

Non-Diesel Fuel
Scale Charge

Non-Diesel Fuel
VAT due per vehicle

Up to 1,400cc

£232

£34.55

£256

£38.12

1,401 - 2,000cc

£232

£34.55

£325

£48.40

over 2,000 cc

£295

£43.93

£478

£71.19

CAR BENEFITS

  • The benefit is based on percentage of the list price of car when new, including accessories. 

  • The list price is subject to a maximum of £80,000

  • An employee’s capital contribution of up to £5,000 is treated as reducing the list price. 

  • The benefit is reduced where car is over 4 years old at end of year of assessment. 

  • The benefit is reduced where business mileage exceeds 2,499 and 17,999 miles per annum.

  • There are special rules for cars over 15 years old valued at more than £15,000.

 

  Percentage of List Price Assessable            

1999-2000  

2000-2001  

Benefit Assessed

Under 4 years

Over 4 years

Under 4 years

Over 4 years

BUSINESS MILEAGE

 

 

 

 

Up to 2,499 miles per annum

35.00%

26.25%

35.00%

26.25%

Between 2,500 and 17,999 miles per annum

25.00%

18.75%

25.00%

18.75%

Over 17,999 miles per annum

15.00%

11.25%

15.00%

11.25%

CAR BENEFITS

 

 1999-2000  

2000-2001

Car Fuel Scales

Diesel

Non-Diesel Fuel

Diesel

Non-Diesel Fuel

1,400cc or less

£1,540

£1,210

£2,170

£1,700

1,401cc to 2,000cc

£1,540

£1,540

£2,170

£2,170

over 2,000cc

£2,270

£2,270

£3,200

£3,200

These above benefits are only applicable to employees earning over £8,500 and directors.

REVENUE APPROVED MILEAGE ALLOWANCES

Mileage allowances paid to employees who use their own cars for business purposes are not taxable if
the allowance paid is within the limits set out below:

1999-2000

Rate of Allowance  

2000-2001

Rate of Allowance

Engine Capacity

First 4,000 miles

Excess over 4,000 miles

Engine Capacity

First 4,000 miles

Excess over 4,000 miles

Up to 1,000cc

28p

17p

Up to 1,000cc

28p

17p

1,001 to 1,500cc

35p

20p

1,001 to 1,500cc

35p

20p

1,501 to 2,000cc

45p

25p

1,501 to 2,000cc

45p

25p

Over 2,000cc

63p

36p

Over 2,000cc

63p

36p

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