Budget 2008
Tax rates and allowances 2008-09
Income Tax – Abolition of the 10% band except for savings income.
Income Tax Allowances - personal allowances
Single persons:
Under 65 - £5,435 (2007-08 £5,225)
Age 65 to 74 - £9,030 (2007-08 £7,550)
Age 75 and over - £9,180 (2007-08 £7,690)
Married Persons:
Aged less than 75 (born before 6 April 1935) £6,535 (£6,285 2007-08)
Aged 75 and over £6,625 (£6,365 2007-08)
(Subject to restriction for earnings in excess of £21,800 (£20,900 2007-08)
Blind Person's Allowance £1,800 (2007-08 £1,730)
Capital Gains Tax - Annual tax exempt amount.
Individuals £9,500 (£9,200 2007-08)
Most Trusts £4,750 (£4,600 2007-08)
Gains on sale of principal private residence will continue to be exempt from capital gains tax.
Corporation Tax
Small companies 21% (2007 20%)
Other companies 28% (2007 30%)
(marginal relief is available for companies with profits between £300,000 and £1.5 million
Inheritance tax
Gains on estates from 6 April 2008, the limit is increased to £312,000 (2007/08 £300,000)
The limit is doubled where the estate is owned by a married couple of civil partners.
Company car fuel benefit charge – remains at £14,400.
Company Car Tax - minimum charge remains based on vehicle emissions equivalent to 140 grams per kilometre of CO2.
Increases in "Sin Taxes"
From 6pm on 12 March 2008:
- Cigarettes - 11p on packet of 20
- Cigars - 4p per packet of 5
- Hand Rolling Tobacco – 11p per 25g.
From 17 th March 2008:
- Beer - 4p per pint
- Wine - 14p per 75cl bottle
- Spirits – 55p per 70cl bottle
- Sparkling wine – 18p per 75cl bottle
- Cider – 3p per litre
- Sparkling cider – 14p per 75cl bottle
Child and Working Tax Credits
Child element of CTC will increase by £70pa to £1,800pa. Other elements of the tax credits will rise in line with inflation.
VAT Changes from 1 April 2008
Increased turnover limits for registration and deregistration:
- Registration - turnover threshold increased to £67,000. (£64,000 2007-08)
- Deregistration - turnover limit increased to £65,000. (£63,000 2007-08)
No change in 17.5% standard rate of VAT.
These are the main changes within the Budget. Please contact us for further information on how it affects you.
Tax Diary March/July 2008
1 April 2008 - Due date for corporation tax due for the year ending 30 June 2007.
5 April 2008 - Last day for organising your capital gains tax disposals to ensure you take advantage of your £9,200 exempt annual allowance.
5 April 2008 - Last day for making any exempt annual gifts for inheritance tax purposes. (Up to £3,000 per year, £6,000 if you have not used the previous tax years annual allowance.).
19 April 2008 - Last date to pay any outstanding PAYE and Class 1 NICs for 2007/08 to the Revenue. (If you pay your tax electronically the due date is 22 April 2008).
19 May 2008 - Last date to submit P14 and P35 end of year forms to the Revenue.
31 May 2008 - Ensure all employees have been given their P60s.
6 July 2008 - Ensure forms P11D(b), P9D and P11D are submitted to the Revenue.
PLEASE NOTE:
The ideas shared with you on this web page are intended to inform rather than advise. Taxpayers circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.