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Tax
Rates & Allowances 2009-10
Tax
Allowance on Vehicles
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Employment
benefits - company cars & vans
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For 2010/11, the taxable benefit is 15% of list price for CO2
emissions of 135g/km. This charge increases by 1% for each additional
full 5g/km up to a maximum of 35% for emission of 235g/km or
more. Second cars are taxed in the same way.
For
2010/11, the minimum benefit is 10% for emissions of 120g/km
or less
There are reduced percentages for cars running wholly or partly
on alternative fuels
From 2008/09, cars which have been manufactured to run on E85
fuel receive a 2% discount
Where there is no C02 figure, and for cars registered before
1 January 1998, the taxable benefit is based on engine size
Diesel supplement: for cars registered after 1 January 1998
a 3% supplement applies, not exceeding 35%.
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Chargeable
on employees earning £8,500 or over (including benefits)
and directors
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- The
list price relates to the day before first registration and
includes accessories. The price is subject to an upper limit
of £80,000
- The
list price is reduced by the employees capital contribution
when the car is first made available, subject to a maximum
deduction of £5,000
- Van,
restricted private use condition not met, van benefit
£3,000, fuel £500
- Payments
by employees for private use may reduce the above benefits
- The
price must be increased by the list price of optiona accessories
with the car & by the list price of accessories casting
£100 or more
- Special
rules apply to classic cars, where the market value (if greater)
is substituted for the list price if the car is at least 15
years old & its market value at least £15,000
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HM
Revenue & Customs Mileage Rates
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Car:
Approved rates for employees using their own cars of business
are 40p per mile for the first 10,000 miles and 25p per mile thereafter.
Income Tax and NICs maybe due on higher rates and tax relief on
lower rates
Fuel:
Advisory rates for employee private mileage reimbursement or employer
reimbursement of business mileage are published by HM Revenue
& Customs for time to time. |
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Car
Fuel Benefit
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the cost of all fuel for private use is borne by the employee,
the fuel benefit is nil. Otherwise, the taxable benefit
is calculated as the car benefit percentage (see above) of £16,900. |
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Corporation Tax
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| Financial
Year to |
2009/10
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2010/11
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| Taxable
Profits |
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First £300,000
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21%
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21%
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Next
£1,200,000
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29.75%
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29.75%
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Over
£1,500,000
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28%
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28%
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Main
Capital Allowances
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|
IBA & ABA |
3% |
Straight
line based upon cost (note 2) |
| Plant
& Machinery |
20% |
Reducing
balance |
| Annual
Investment Allowance (AIA) |
100% |
On
1st £50k investment in plant & machinery |
| Long-life
assets |
10% |
Previously
6% |
| Integral
Features |
10% |
Category
Introduced |
| Low
Emission Cars |
100% |
New
Cars with emissions < 110g/km CO2 |
| Energy
Efficient Plant |
100% |
Details
at eca.gov.uk (note 4) |
| Research
& Development |
100% |
Assets
used solely for qualifying R&D |
1.
The small companies rate will increase to 22% in 2009/10
2. This will be reduced by 1% pa & will be abolished by
1 April 2011
3.Expenditure in excess of the AIA in a yr qualifies for WDA
at 20%
4. Subject to cap, 1st yr tax credits available at 19% of
the loss attributable to ECAs.
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Tax
Rates & Allowances Continue >
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