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Each quarter, we publish a newsletter and annually a budget summary detailing
the latest tax and business information relevant to the small business.

You can download the latest of these here in PDF Format.

Newsletter Budget 2011

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Weekly Till Sheet Mileage Log Sheet

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Information

income tax rates | main income tax reliefs | tax credits | car benefit assessment | tax free mileage rates |individual savings accounts (ISA's) | national insurance contributions | personal pensions | rates of inheritance tax | capital gains tax | corporation tax | main capital allowances | value added tax | vat scale rates on private fuel | vat flat rate scheme | stamp duty | pensions and benefits | national minimum wage | earliest due date to payment of tax

INCOME TAX RATES	2011/2012	2010/2011
10% starting rate (for savings income only) to:	£2,560	£2,440
20% basic rate on income to:	£35,000	£37,400
40% higher rate on income to	£150,000	£150,000
50% additional rate on income above	£150,001+	£150,001+
Higher rate on dividends	32.5%	32.5%
- effective rate with tax credit	25%	25%
Additional rate on dividends	42.5%	42.5%
- effective rate with tax credit	36.1%	36.1%

MAIN INCOME TAX RELIEFS	2011/2012	2010/2011
Personal allowance*	£7,475	£6,475
Age-related allowance Personal allowance - Age 65-74 - Age 75 or over Married Couple** (either spouse born on or before 5 April 1935) - minimum amount Income Limit Clawback	£9,940 £10,090 £7,295 £2,800 £24,000 £1 in £2	£9,490 £9,640 £6,865 £2,670 £22,900 £1 in £2
Blind person's allowance	£1,980	£1,890
*Maintenance payments (born before 5/4/35)**	£2,350	£2,350

* Reduced by £1 for £2 where income exceed £100,000
** Denotes allowance given as a 10% credit

IMPORTANT LIMITS	2011/2012	2010/2011
Charitable donations under payroll giving scheme	no limit	no limit
Golden handshake exemption	£30,000	£30,000
Venture capital trusts**	£200,000	£200,000
Gift aid - minimum	no minimum	no minimum
Rent a room exemption	£4,250	£4,250
Enterprise Investment scheme*	£500,000	£500,000
Enterprise Management Incentive Investment	£120,000	£120,000

*Relief restricted to 20%
** Relief restricted to 30% - must now be held for 5 years

WORKING TAX CREDIT (WTC) 2011/2012
BASIC ELEMENT	LONE PARENT ELEMENT	2nd ADULT ELEMENT	30 HOUR ELEMENT	DISABILITY ELEMENT	SEVERE DISABILITY ELEMENT	50 PLUS ELEMENT		CHILDCARE ELEMENT
						16 to less than 30hrs work pw	Over 30 hrs work pw	70%of cost Max / Max 1 Child
£1,920pa £36.92 pw	£1,950pa £37.50pw	£1,890pa £36.35pw	£790pa £15.19pw	£2,670pa £51.35pw	£1,130pa £21.73pw	1,365pa £26.25pw	£2,030pa £39.04pw	£300pw / £175pw

Claimants over retirement age
From 6 April 2011, people over 65 will be able to claim Working Tax Credit if they work at least 16 hours a week. Currently they must work at least 30 hours a week, unless they have dependent children, or qualify for the disability element, or they are returning to work after claiming certain benefits(the 50+ Return to Work payment)

CHILDRENS TAX CREDIT (CTC) 2011/2012
FAMILY ELEMENT	BABY ADDITION (under 1 year)	CHILD ELEMENT	DISABLED CHILD ELEMENT	ENHANCED DISABLED CHILD ELEMENT
£545pa £10.45 pw	Withdrawn	£2,555pa £49.13pw	£2,800pa £53.85pw	£1,130pa £21.73pw

HOW WTC/CTC IS CALCULATED

Those entitled to CTC only: income less than £15,860pa or £305pw - full CTC.
Those entitled to WTC & CTC income less than £6,420pa or £123.46pw - full WTC & CTC
Tax Credits reduced by 41p for every £1 over the threshold.
Family Element of CTC retained until income over £40,000pa then tapers at 41p for every £1 over the threshold.
No Capital limits
First £10,000 income disregarded.

PENSION CREDIT
The figures to be used in calculating Pension Credit entitlements are	2011/2012	2010/2011
Standard minimum guarantee - single person - couple Additional amount for severe disability - single person - couple (one qualifies) - couple (both qualify) Additional amount for carers	£137.35 £209.70 £55.30 £55.30 £110.60 £31.00	£132.60 £202.40 £53.65 £53.65 £107.30 £30.05
Savings credit - single person - threshold - maximum	£103.15 £20.52	£98.40 £20.52
Savings credit - couple - threshold - maximum	£164.55 £27.09	£157.25 £27.09
Disregards Standard earnings Couple's earnings Higher Earnings (carers, part-time fireman etc) War disablement pension War widow'spension Armed Forces Compensation Scheme Widowed parent's allowance Income from a subtenant+	£5.00 £10.00 £20.00 £10.00 £10.00 £10.00 £10.00 £20.00	£5.00 £10.00 £20.00 £10.00 £10.00 £10.00 £10.00 £20.00
Deductions from awards Recovery of overpaid Pension Credit - ordinary overpayments - claimant convicted of fraud Recovery of Council Tax, housing, fuel and water costs Child Support - standard deduction - lower deduction	£10.20 £13.60 £3.40 £6.80 £3.40	£9.90 £13.20 £3.30 £6.60 £3.30
Income from investments The capital disregard remains at £10,000 and the deemed weekly income from capital in excess of the disregard remains £1 for each £500 or part thereof. (Also, certain capital is ignored altogether, including funeral prepayment plans and the surrender value of life assurance polices.) +For income from a boarder, the disregard is £20 plus half the balance of the amount paid by the boarder

CAR BENEFITS 2011/2012 - CARS WITH C02 EMISSION FIGURE*
Grams per litre	Fuel	up to 75	to 121	121 to 129	130 to 134	135 to 139	140 to 144	145 to 149	150 to 154	154 to 159	160 to 164	165 to 169	170 to 174	175 to 179	180 to 184	185 to 189	190 to 194	195 to 199	200 to 204	205 to 209	210 to 214	215 to 219	220 to 224	225 +
% of Car's price taxed	Petrol Diesel	5 8	10 13	15 18	16 19	17 20	18 21	19 20	20 23	21 24	22 25	23 26	24 27	25 28	26 29	27 30	28 31	29 32	30 33	31 34	32 34	33 35	34 35	35 35

You can find your vehicle CO2 emission fiqure at
SMMT - CO2 Emission Service

CARS WITH NO CO2 EMISSION FIGURE & CARS 1ST REGISTERED BEFORE 1/1/98
Registered before 1st January 1998 % rate	1400cc or less 15	1401cc -2000cc 22	2001cc and more 32	Rotary engine 32
Registered after 1st January 1998 % rate	15 (Diesel + 3%)	25 (Diesel + 3%)	35	35

CAR BENEFITS - CARS THAT RUN ON ALTERNATIVE FUELS & TECHNOLOGIES
Type of Car	Electric only	Hybrid electric	Gas only	Bi-fuelwith CO2 Emissions figure	Bi-fuelconversion or other bi-fuel not type B	Cars manufactured for E85 fuel
Code	E	A	A	A	A	A
Discount from 6.4.11	Flat rate 9%	None	None	None	None	None

FUEL BENEFIT CHARGE

Based on CO2 emissions. Charge to be multiplied by a set figure for the year.
From 20011/12 set figure is £18,800. From 2008/09 set figure was £16,900. For 2010/11 set figure is £18,000.
Example: A car that has a CO2 emissions of 195 g/km. % used to calculate car benefit is 29% for 2011/12.
The fuel scale charge will be 29% x £18,800 = £5,452.
Cars registered before 1/1/98 and cars with no CO2 emissions figure. % figure to be used is the same as used for Car Benefits. Class 1A NIC due.

TAX FREE MILEAGE RATES - OWN TRANSPORT
Miles	2011/2012	2010/2011
up to 10,000 miles	45p	40p
over 10,000 miles	25p	25p

For each additional passenger 5p. Motor Cycles 24p. Bicycles 20p.

ADVISORY ONLY - TAX FREE MILEAGE RATES - 01/06/2011 - COMPANY CARS*
Cylinder Capacity	Petrol	Diesel	LPG
0 - 1400 (1600 Diesel)cc	15p	12p	11p
1401(1601 Diesel)- 2000cc	18p	15p	13p
2001cc +	26p	18p	18p

INDIVIDUAL SAVINGS ACCOUNTS (ISA's)

Individuals 18 or over, Maximum Investment of �10,680pa of which there is a maximum of £5,340 for a "cash ISA" and £1,000 for a "life insurance ISA"

Individuals 16-17 can invest up to £5,340pa in either the cash element of a maxi-ISA or in a cash mini-ISA

Income from this type of investment is free of any Income tax or Capital Gains Tax.

NATIONAL INSURANCE CONTRIBUTIONS 2011/2012 Class 1 - Employed
	Employee's Contribution			Employer's Contribution
Earnings in range	Contribution Table A	Contribution Table B	Contribution Table C	Tables A,B and C
Up to £139pw (£602pm)	Nil	Nil	Nil	Nil
£139.01 - £770pw (£3,337pm)	12%	10.4%	Nil	13.8%
£770.01 - £817pw (£3,657pm)	12%	12%	Nil	13.8%
Over £817pw	2%	2%	Nil	13.8%

The reduced rate payable by certain married women and widows will rise from 4.85% to 5.85% between the Primary Threshold and the Upper Earnings Limit (£139.01 and £817 a week for 2011/12),plus 2% on earnings above the Upper Earnings Limit.

Class 1A (employers only) : 12.8% based on taxable benefits excluding childcare
Class 1B (employers only) : 12.8% in respect of amounts in PAYE settlement agreement
Class 2 - self-employed flat rate: £2.50 per week if earnings are over £5,315 pa
Class 3 - Voluntary: £12.60 per week
Class 4* - Self-employed: 9% on profits between £7,225 and £42,475pa, 2% over £42,475pa
*Exemption applies if state retirement age was reached by 6 April 2011

PERSONAL PENSIONS (PPPs) and RETIREMENT ANNUITY PREMIUMS (RAPs)

The maximum amount of contributions on which an individual can claim tax relief in 20010/11 is the greater of

The "basic" amount - currently £3,600: and
The amount of the individual's relevant UK earnings that are chargeable to income tax for the tax year up to a maximum of £50,000.

In certain circumstances it may be possible to contribute more than above, but specialist advice should be sought.

A tax charge potentially arises if the value of the pension at retirement exceeds the lifetime allowance.

The pension scheme lifetime allowance for 2012/13 is £1,500,000

From the 6 Aprill 2011 tax relief for pension contributions will be restricted for people with incomes over £150,000 - higher rate relief will be progressively withdrawn until, for those with incomes of £180,000 or more, relief will be given at he basic rate only.

RATES OF INHERITANCE TAX
Transfers on or Within Seven Years Before Death
	2011/2012	2010/2011
Nil rate band to	£325,000	£325,000
Rate of tax on balance	40%	40%
Chargeable lifetime transfers	20%	20%

Main exemptions
Spouse/cival partner - both UK domiciled (or tranferor non domiciled): unlimited
Non domiciled spouse/cival partner - UK domiciled transferor: £55,000
Business property relief of 100% for all shareholdings in qualifying unquoted companies.
Similar relief for qualifying assets used in unincorporated businesses and working farms.
Annual exemption for chargeable lifetime transfers �3,000.
Small gifts - annual amount per donee �250.
Marriage gifts by
- parent: £5,000
- grandparent: £2,500
- other: £1,000

Charities and political parties: unlimited
Regular gifts out of surplus income are also exempt.

Reduced tax charge on transfers within 7 years of death

Years before death	% of death rates
0 - 3	100%
3 - 4	80%
4 - 5	60%
5 - 6	40%
6 - 7	20%
Over 7	NIL

CAPITAL GAINS TAX
Tax is charged at 18% after deduction of Annual Exemption for basic rate taxpayers and 28% for higher rate taxpayers. Entrepreneurs' Relief reduces the rate to 10% on the first £10m of gains on disposals of qualifying business assets.
Annual exemption	2011/2012	2010/2011
Individuals and personal reps	£10,600	£10,100
Trusts for diabled person	£10,600	£10,100
Most trusts	£5,300	£5,050
Chattels exemption - proceeds up to	£6,000	£6,000
Transfers between husband & wife living together	No Limit	No Limit

Companies: Gains charged to corporation tax after indexation, no annual exemption available.

CORPORATION TAX		Y/E 31/3/2012	Y/E 31/3/2011
Small companies' rate	up to £300,000	20%	21%
Upper marginal rate	£300,001 to 1,500,000	27.5%	29.75%
Full rate	Over £1,500,00	26%	28%

Companies with taxable profits of £1,500,000 or more may be liable to quarterly instalment payments on account of tax liabilitis.

MAIN CAPITAL ALLOWANCES

Plant and machinery

writing down allowance (some long life assets 6%)
Long life assets (including integral features)
Approved energy-savings items
Annual Investment Allowance
up to £100,000 (2009/10 £50,000)

Motor Cars (max relief £3,000pa)

General (reducing balance basis)
Low emission cars (less than 110co2)

New cars purchased after 1 April 2009 (Co) or 6 April 2009
Low emission cars (less than 110c02)
Cars less than 160 co2
Cars higher 160 co2
The max relief of £3,000pa will no longer apply

Other Items

Research & Development
Enterprize Zone buildings
Industrial buildings, hotels and agricultural buildings

2011/2012

20%
10%
100%

100%

20%
100%

100%
20%
10%

100%
100%
Nil

2010/2011

20%
10%
100%

100%

20%
100%

100%
20%
10%

100%
100%
1%

VALUE ADDED TAX
Standard rate (17.5% until 04/01/2011)	20.0%
Reduced rate	5%
Registration level from 01/04/2011	�73,000 pa
Deregistration level from 01/04/2011	�71,000 pa
Optional flat rate scheme - up to	£150,000
Annual accounting scheme - up to	£1,350,000
Cash Accounting Scheme	£1,350,000

VAT as a fraction of gross price - 1/6th

VAT SCALE RATES ON PRIVATE FUEL (return periods starting after 01/05/2011)
Return Period	Monthly		Quarterly		Annual
CO2 band	Gross	VAT	Gross	VAT	Gross	Vat
120 or less	£52	£8.67	£157	£26.17	£630	£105.00
125	£78	£13.00	£236	£39.33	£945	£157.50
130	£84	£14.00	£252	£42.00	£1,010	£168.33
135	£89	£14.83	£268	£44.67	£1,070	£178.33
140	£94	£15.67	£283	£47.17	£1,135	£189.17
145	£99	£16.50	£299	£49.83	£1,200	£200.00
150	£105	£17.50	£315	£52.50	£1,260	£210.00
155	£110	£18.33	£331	£55.17	£1,325	£220.83
160	£115	£19.17	£346	£57.67	£1,385	£230.83
165	£120	£20.00	£362	£60.33	£1,450	£241.67
170	£126	£21.00	£378	£63.00	£1,515	£252.50
175	£131	£21.83	£394	£65.67	£1,575	£262.50
180	£136	£22.67	£409	£68.17	£1,640	£273.33
185	£141	£23.50	£425	£70.83	£1,705	£284.17
190	£147	£24.50	£441	£73.50	£1,765	£294.17
195	£152	£25.33	£457	£76.17	£1,830	£305.00
200	£157	£26.17	£472	£78.67	£1,890	£315.00
205	£162	£27.00	£488	£81.33	£1,955	£325.83
210	£168	£28.00	£504	£84.00	£2,020	£336.67
215	£173	£28.83	£520	£86.67	£2,080	£346.67
220	£178	£29.67	£536	£89.33	£2,145	£357.50
225 or more	£183	£30.50	£551	£91.33	£2,205	£367.50

OPTIONAL VAT FLAT RATE SCHEME FOR SMALL BUSINESSES
(HMCE Notice 733) Registration Allowed subject to certain exemptions, if expected turnover in the next 12 months is No more than £150,000 taxable supplies; once on the scheme the trader is not required to leave the scheme until his annual income exceeds £225,000. Calculate vat payable by multiplying the flat rate percentage for the relevant trade sector by total income. N.B. Supplies to other Vat registered businesses are invoiced at the normal rate for the supply
FLAT RATE PERCENTAGE BY TRADE SECTOR
Category of Business	% from 04.01.11	% from 01.01.10
Accountancy or book-keeping	14.5	13.0
Advertising	11.0	10.0
Agricultural services	11.0	10.0
Any other activity not listed elsewhere	12.0	10.5
Architect, civi and structural engineer or surveyor	14.5	13.0
Boarding or care of animals	12.0	10.5
Business services that are not listed elsewhere	12.0	10.5
Catering services including restaurants and takeaways	12.5	11.0
Computer and IT consultancy or data processing	14.5	13.0
Computer repair services	10.5	9.5
Dealing in waste scrap	10.5	9.5
Entertainment or journalism	12.5	11.0
Estate agency or property management services	12.0	10.5
Farming or agriculture that is not listed elswhere	6.5	6.0
Film, radio, television or video production	13.0	11.5
Financial services	13.5	12.0
Forestry or fishing	10.5	9.5
General building or construction services*	9.5	8.5
Hairdressing or other beauty treatment services	13.0	11.5
Hiring or renting goods	9.5	8.5
Hotel or accommodation	10.5	9.5
Investigation or security	12.0	10.5
Labour-only building or construction services*	14.5	13.0
Laundry or dry-cleaning services	12.0	10.5
Lawyer or legal services	14.5	13.0
Library, archive, museum or other cultural activity	9.5	8.5
Management consulting	14.0	12.5
Manufacturing fabricated metal products	10.5	9.5
Manufacturing food	9.0	8.0
Manufacturing that is not listed elsewhers	9.5	8.5
Manufacturing yarn, textiles or clothing	9.0	8.0
Membership organisation	8.0	7.0
Mining or quarrying	10.0	9.0
Packaging	9.0	8.0
Photography	11.0	10.0
Post offices	5.0	4.5
Printing	8.5	7.5
Publishing	11.0	10.0
Pubs	6.5	6.0
Real estate activity not listed elsewhere	14.0	12.5
Repairing personal or household goods	10.0	9.0
Reparing vehicles	8.5	7.5
Retailing food, confectionary, tobacco, newspapers or children's clothing	4.0	3.5
Retailing pharmaceuticals, medical goods, cosmetics or toiletries	8.0	7.0
Retailing that is not liested elsewhere	7.5	6.5
Retailing vehicles or fuel	6.5	6.0
Secretarial services	13.0	11.5
Social work	11.0	10.0
Sport or recreation	8.5	7.5
Transport or storage, including couriers, freight, removals and taxis	10.0	9.0
Travel agency	10.5	9.5
Veterinary medicine	11.0	10.0
Wholesaling agricultural products	8.0	7.0
Wholesaling food	7.5	6.5
Wholesaling that is not listed elsewhere	8.5	7.5

* 'Labour-only building or construction services' means building or construction services where the value of materials supplied is less than 10% of relevant turnover from such services; any other building or construction services are 'general building or construction services'.

STAMP DUTY
Transfers by sale	% of Consideration
Shares and marketable securities	0.5%
Land and other property - Disadvantage Area £0 - �150,000 (increased to £250,000 for 1st time buyers) £150,001 - £250,000 £250.001 - £500,000 £500,001 - £1,000,000 over £1,000,000 (with effect from 6 April 2011)	Nil 1% 3% 4% 5%
Land and other property - Residential £0 - �125,000 (increased to £250,000 for 1st time buyers) £125,001 - £250,000 £250.001 - £500,000 £500,001 - £1,000,000 over £1,000,000 (with effect from 6 April 2011)	Nil 1% 3% 4% 5%
Land and other property - Non-residential £0 - £150.000 £150,001 - £250,000 £250,001 - £500,000 Over £500,000	Nil 1% 3% 4%
Transfers by gift	NIL
Property that is not land, shares or interests in partnerships is no longer subject to stamp duty.
New Leases (lease duty) Charge for the rental element of leases is 1% on the net present value (NPV) of the rental payments to the extent that the NPV exceeds £125,000 for residential property of £150,000 for non-residential property. Lease premiums are charged at the same rates as for freehold transfers, unless the annual rent exceeds £600, in which case there will be no zero band for the premium and the 1% charging band will apply to premiums up to £250,000.

PENSIONS AND BENEFITS
Basic Retirement Pension Basic person On husband's insurance Addition at age 80 Value of graduated pension unit	Weekly Benefit
	2011/2012	2010/2011
	£102.15 £61.20 £0.25 0.1189	£97.65 £58.50 £0.25 0.1153
Child Benefit & Guardian's Allowance Child Benefit - eldest or only child - each other child Guardian's Allowance	£20.30 £13.40 £14.75	£20.30 £13.40 £14.30
Statutory Sick Pay (SSP) Earnings threshold Standard Rate	£102.00 £81.60	£97.00 £79.15
Maternity and Paternity Benefits Maternity Allowance - earnings threshold - standard rate Statutory Maternity, Paternity & Adoption - earnings threshold - standard rate	£30.00 £128.73 £102.00 £128.73	£30.00 £124.88 £97.00 £124.88
Carer's Allowance Standard Rate - spouse or person looking after children Earnings rule	£55.55 £32.70 £100.00	£53.90 £31.70 £95.00
Incapacity Benefit Long Term -spouse or person looking after children Short-term (under state pesion age) -lower rate -Higher rate - spouse or person looking after children	£94.25 £54.75 £71.10 £84.15 £42.65	£91.40 £53.10 £68.95 £81.60 £41.35
Bereavement Benefits Bereavement payment (lump sum) Widowed parent's allowance Bereavement allowance ( Standard rate)	£2,000.00 £100.70 £100.70	£2,000.00 £97.65 £97.65
Jobseekers allowance Age under 25 Age 25 and over	£53.45 £67.50	£51.85 £65.45

NATIONAL MINIMUM WAGE
Age	From 1 October 2011	From 1 October 2010
21 and above	£6.08	£5.93
18 - 20	£4.98	£4.92
16 - 17	£3.68	£3.64
Apprentice rate Under 19 or 19 and above in 1st year of training	£2.60	£2.50

Minimum Holidays 28 days ( 5.6 weeks) which can include statutory holidays

EARLIEST DUE DATES FOR PAYMENT OF TAX Income Tax
Employments	Under PAYE - withheld on payment. Balance - 31 January following end of tax year, or added to PAYE in later year.
All income received without tax deduction (trades, professions, rents and untaxed interest)	Payments on account on 31 January and 31 July based on 2010/11 tax Balance of 2010/11 tax due 31 January 2012
Dividends and most interest	10% withheld on payment. Higher rate due 31 January 2012 for 2010/11

Capital Gains Tax - 31 January following the end of the tax year

Inheritance Tax - normally 6 months after month of death

Corporation Tax - normally 9 months after end of accounting period

Disclaimer
The above information has been provided for guidance only and should not be taken as a substitute for professional advice. The writer cannot accept any liabilities for loss sustained in the use of the above information.