Hall Accountancy Services Limited

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We have highlighted key changes below.

For more details click here

For tables of rates and allowances for 2004/05 and 2003/04 click here

For tables of rates and allowances for 2005/06 and 2004/05 click here

For tables of rates and allowances for 2006/07 and 2005/06 click here

KEY CHANGES

COMPANIES / EMPLOYERS

• Abolition of 0% starting rate and 19% non corporate distribution rate for corporation tax from 1 April 2006
• Rate of first year allowances for plant and machinery to remain at 50% for small companies.
• Small increase in NIC thresholds for employees.
• Removal of the exemption from benefit in kind rules for computers made available to employees for their private use.
• Restriction of number of mobile phones that can be provided tax free to an employee or their family members to one per employee.

INDIVIDUALS

• Personal allowance is to be increased to £5,035 per annum.
• Capital gains tax exemption to increse to £8,800 per annum.
• Inheritance tax threshold to rise to £285,000.
• Discussions to be held to reduce filing time for self-assessment tax returns for the year 2007-08 and later.
• Car tax charges revamp with a new high level of £215.

MORE DETAILS

COMPANIES / EMPLOYERS

National insurance

No increase in the rates of national insurance have been announced but the earnings levels have increased slightly. These can be found on our rates and allowances page.

Corporation tax rates

The nil rate for profits up to £10,000 has been abolished. All profits up to £300,000 will now be taxed at 19%.  For more details see our rates and allowances page.

First year allowances for plant and machinery will remain at 50% for small companies.

For ’long funding leases’ (generally greater than 5 years) finalised on or after 1 April 2006 capital allowances will, broadly, be available to the lessee rather than the lessor.

VAT

Registration and deregistration limites have been increased to £61,000 and £59,000 respectively.

The excise duty deferrment guarantee scheme will be radically reformed, details to be announced after consultation.

INDIVIDUALS

Income tax

The starting rate, basic rate and higher rate are unchanged on the previous year.

Personal allowances

The tax free allowance for all individuals has increased slightly.

Employer provided vans

New rules for the taxation of company vans come in to force in April 2006.

Car tax rates

Vehicles registered before March 2001

1549cc and below £110 above 1549cc £175

Vehicles registered from March 2001

VED Band CO2 (g/km) Petrol cars Diesel cars A 100 and below £0 £0 B 101 to 120 £40 £50 C 121 to 150 £100 £110 D 151 to 165 £125 £135 E 166 to 185 £150 £195 F 186 to 225 £190 £195 G* 226 and above £210 £215

* for new cars registered after 23 March 2006