 |
Please
contact us
if you have any queries relating to the 2002/03 tax year.
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|
INCOME TAX RATES
|
|
2002/03
|
2001/02
|
Band
£ |
Rate
%
|
Band
£ |
Rate
%
|
| 0 - 1,920 |
10
|
0 - 1,880 |
10
|
| 1,921 - 29,900 |
22 *
|
1,881 - 29,400 |
22 *
|
| Over 29,900 |
40 **
|
Over 29,400 |
40 **
|
* Except dividends (10%) and savings income (20%).
** Except dividends (32.5%).
Other income taxed first, then savings income and finally dividends. |
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INCOME TAX RELIEFS
|
|
|
2002/03
£
|
2001/02
£
|
| Personal allowance |
- under 65 |
4,615
|
4,535
|
|
- 65 - 74 *** |
6,100
|
5,990
|
|
75 and over *** |
6,370
|
6,260
|
| 1 Married couple's allowance |
- aged less than 75 and born before 6.4.35 *** |
5,465
|
5,365
|
|
- 75 and over |
5,535
|
5,435
|
|
- min. amount |
2,110
|
2,070
|
| *** Age allowance income limit |
|
17,900
|
17,600
|
| Blind person’s allowance |
|
1,480
|
1,450
|
| 2 Children’s tax credit |
|
5,290
|
5,200
|
Notes
1 Qualifies for relief at 10%.
2 Qualifies for relief at 10%. For 2002/03, credit is maximum of £10,490 for children born in the tax year. Credit gradually withdrawn for higher rate taxpayers.
*** Reduce age allowance by £1 for every £2 of excess income over £17,900 (2001/02 £17,600). |
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PENSION PREMIUMS
|
|
% of Net Relevant Earnings (NRE)
2002/03 & 2001/02
|
| Age at the beginning of the tax year |
* Personal Pensions
(including stakeholder)
|
Retirement
Annuities
|
35 or less
36 - 45
46 - 50
51 - 55
56 - 60
61 - 74
|
17.5
20
25
30
35
40
|
17.5
17.5
17.5
20
22.5
27.5
|
|
*Maximum contributions 2002/03 and 2001/02: higher of
- £3,600 (gross)
- % of NRE capped at £97,200 in 2002/03 (2001/02 £95,400)
|
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CAR AND FUEL BENEFITS
|
| Company cars - 2002/03 |
- For diesel cars add a 3% supplement, but maximum still 35%.
- If the CO2 figure doesn’t end in a 5 or 0 round down to the nearest 5 or 0.
- Discounts apply to certain environmentally friendly cars.
- For cars registered before 1.1.98 charge is based on engine size.
|
| Percentage of car's list price taxed |
CO2 emissions in grams per kilometre
|
| 15% |
Up to 165
|
| Additional 1% |
for every additional 5
|
| Up to 35% (max) |
265 and above
|
Notes
1. The list price includes accessories and is subject to an upper limit of £80,000.
2. List price is reduced for capital contributions made by the employee up to £5,000.
3. Payments made by employees may reduce the benefits.
4. Until 5.4.02 the charge was based on list price but the percentage was determined by reference to the age of the car and the level of business mileage.
|
| Van benefit 2002/03 and 2001/02 |
|
Per Vehicle
|
Vehicles under
4 years old
£500
|
Vehicles at least
4 years old
£350
|
Notes
1. The age is determined at the end of the tax year.
2. Van benefits include fuel for private use.
|
|
|
|
|
|
| Car fuel scale charge |
Up to 1400cc
£
|
1401 - 2000cc
£
|
Over 2000cc
£
|
| 2002/03 |
- petrol/LPG |
2,240
|
2,850
|
4,200
|
|
- diesel |
2,850
|
2,850
|
4,200
|
| 2001/02 |
- petrol/LPG |
1,930
|
2,460
|
3,620
|
|
- diesel |
2,460
|
2,460
|
3,620
|
| The fuel scale charge is reduced to nil only if the employee pays for all private fuel. |
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MILEAGE ALLOWANCE PAYMENTS
|
| Cars and vans |
2002/03
Rate per mile
|
These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.
|
| Up to 10,000 miles |
40p |
| Over 10,000 miles |
25p
|
| Bicycles |
20p
|
| Motorcycles |
24p |
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INDIVIDUAL SAVINGS ACCOUNTS (ISAs)
|
|
Max. investment per year 2002/03 and 2001/02
|
| Maxi ISA |
£
|
|
Mini ISA |
£
|
| Overall limit |
7,000
|
|
Overall limit |
7,000
|
| Stocks and shares |
up to 7,000
|
|
Stocks and shares |
up to 3,000
|
| Cash |
up to 3,000
|
|
Cash |
up to 3,000
|
| Life insurance |
up to 1,000
|
|
Life insurance |
up to 1,000
|
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CORPORATION TAX
|
|
Profits Band
£
|
Year to 31.3.03
Rate %
|
Year to 31.3.02
Rate % |
| Starting rate |
0 - 10,000
|
0
|
10 |
|
Marginal (starting) rate
|
10,001 - 50,000
|
23.75
|
22.5 |
| Small companies rate |
50,001 - 300,000
|
19
|
20 |
| Marginal (small companies) rate |
300,001 - 1,500,000
|
32.75
|
32.5 |
| Full rate |
Over 1,500,000
|
30
|
30 |
| Starting rate fraction |
|
19/400
|
1/40
|
| Small companies fraction |
|
11/400
|
1/40
|
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CAPITAL ALLOWANCES
|
|
Writing Down Allowance |
| Plant and Machinery* |
25%#(reducing balance) |
| Motor Cars |
25% (reducing balance) - £3,000 max |
| Industrial Buildings |
4% (straight line) |
| Agricultural Buildings |
4% (straight line) |
| Hotels |
4% (straight line) |
*For small and medium businesses: first year allowances (FYAs) on expenditure incurred from 2.7.98 of 40%. 100% FYAs on expenditure incurred between 12.5.98 and 11.5.02 on plant and machinery for use primarily in Northern Ireland.
For small businesses: 100% FYAs on expenditure incurred between 1.4.00 and 31.3.03 on computers, software and internet-enabled mobile phones.
For all businesses: 100% FYAs on expenditure on energy saving plant and machinery from 1.4.01.
# 6% on certain long life assets. |
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VALUE ADDED TAX
|
| Standard Rate |
17.5% |
| Lower Rate |
5% |
| Annual Registration Limit - from 25 April 2002 |
£55,000 |
VAT on private fuel - scale charge due per quarter per car for accounting periods beginning on or after 1 May 2002.
|
|
Petrol
|
Diesel
|
|
Charge
£
|
VAT
£
|
Charge
£
|
VAT
£
|
| Up to 1400cc |
226.00
|
33.65
|
212.00
|
31.57
|
| 1401 - 2000cc |
286.00
|
42.59
|
212.00
|
31.57
|
|
Over 2000cc
|
422.00
|
62.85
|
268.00
|
39.91
|
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CAPITAL GAINS TAX
|
|
|
2002/03
|
2001/02
|
| Individuals |
- exemption |
£7,700
|
£7,500
|
|
- balance where gains* plus taxable income |
|
|
|
£0 - £1,920 (£1,880) |
10%
|
10%
|
|
£1,921 (£1,881) - £29,900 (£29,400) |
20%
|
20%
|
|
excess over £29,900 (£29,400) |
40%
|
40%
|
|
|
|
|
| Trusts |
- exemption |
£3,850
|
£3,750
|
|
- balance of gains* |
34%
|
34%
|
| *Reduced by taper relief for certain assets. |
|
|
|
|
| Retirement relief (from age 50) exempt, first |
£50,000
|
£100,000
|
| - additional relief of 50% on the next |
£150,000
|
£300,000
|
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INHERITANCE TAX
|
|
|
Chargeable Transfers
|
Death Rate
%
|
Lifetime Rate
%
|
2002/03
£’000
|
2001/02
£’000
|
|
Nil
|
Nil
|
0 - 250
|
0 - 242
|
|
40
|
20
|
Over 250
|
Over 242
|
|
|
|
|
|
| Reliefs |
|
|
|
|
| Annual exemption |
£3,000 |
Marriage |
- parent |
£5,000 |
| Small gifts |
£250 |
|
- grandparent |
£2,500 |
|
|
|
- bride/groom |
£2,500 |
|
|
|
- other |
£1,000 |
|
|
|
|
|
|
| Reduced charge on gifts within 7 years of death |
| Years before death |
0-3
|
3-4
|
4-5
|
5-6
|
6-7
|
| % of death charge |
100%
|
80%
|
60%
|
40%
|
20%
|
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STAMP DUTY
|
| Transfers of shares and securities |
0.5% |
Transfers of other property (from 28 March 2000) |
| Price |
|
| Up to £60,000 |
Nil |
| £60,001 - £250,000 |
1% |
| £250,001 - £500,000 |
3% |
| Over £500,000 |
4% |
Stamp duty at the appropriate rate is charged on the full price not just on any excess over a threshold.
Exemption from 30.11.01 on all property up to £150,000 in ‘disadvantaged areas’. |
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NATIONAL INSURANCE
|
Class 1 (employed)
(contracted in) |
2002/03 Rates |
| Weekly earnings |
Employer
|
Employee
|
| Up to £89 |
Nil*
|
Nil*
|
|
£89.01 - £585
|
11.8%**
|
10%**
|
| Over £585 |
11.8%**
|
£49.60 (max)
|
*Entitlement to contribution-based benefits retained for earnings between £75.01 and £89 per week.
**On earnings above £89 |
| Class 1A (employers) |
11.8% on employee taxable benefits |
| Class 1B (employers) |
11.8% on PAYE Settlement Agreements |
| Class 2 (self-employed) |
flat rate per week £2.00 small earnings exception p.a. £4,025 |
| Class 3 (voluntary) |
flat rate per week £6.85 |
| Class 4 (self-employed) |
profits £4,615 - £30,420 at 7% (max £1,806.35) |
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MAIN SOCIAL SECURITY BENEFITS
|
|
|
Weekly Benefit
|
|
|
2002/03
|
2001/02
|
| Basic retirement pension |
- single person |
£75.50
|
£72.50
|
|
- married couple |
£120.70
|
£115.90
|
|
|
|
|
| Statutory Sick Pay (SSP) |
|
|
|
| Average weekly earnings £75 (£72) or over: |
|
£63.25
|
£62.20
|
|
|
|
|
| Statutory Maternity Pay (SMP) |
|
|
|
| Average weekly earnings £75 (£72) or over: |
|
|
|
| Higher weekly rate (first six weeks) |
|
90% of weekly earnings
|
| Lower weekly rate (next 12 weeks) |
|
£75.00
|
£62.20
|
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| SELF ASSESSMENT KEY DATES 2002/03 |
31 July 2002 - Second payment on account for 2001/02.
30 September 2002 - Deadline for submission of tax returns for Inland Revenue calculation; and where the taxpayer wants a balancing payment (below £2,000) collected through their 2003/04 PAYE code.
5 October 2002 - Deadline for notifying Inland Revenue of new sources of income if no tax return has been issued for 2001/02.
31 January 2003 - Deadline for filing tax returns for 2001/02. Balancing payment due for 2001/02. First payment due for 2002/03. |
contents
Please
contact us for advice or to discuss any action you may need to take.
|