2007/08
£

2006/07
£

- under 65

5,225

5,035

Personal Allowance

- 65 - 74 *

7,550

7,280

- 75 and over *

7,690

7,420

Married Couple Allowance

- aged less than 75 and born before 06.04.35*

6,285

6,065

- 75 and over*

6,365

6,135

- min amount

2,440

2,350

* Age allowance income limit (reduce age allowance by £1 for every £2 of excess income over £20,100)

20,900

20,100

Blind person's allowance

1,730

1,660

2007/08

2006/07

Working tax credit (WTC)

£

£

Basic Element

- max.

1,730

1,665

Childcare element

80% of eligible costs to a max. of £175 per week (£300 if two or more children)

Child tax credit (CTC)                                       
Child element
Per child - max                                                 1,845                        1,765

Family element                                                    545                           545

Baby addition                                                      545                            545

Reduction in maximum rates
37% of income above £5,220* p.a.

*If only CTC is claimed, the threshold is £14,495 p.a. The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income.

2007/2008

Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings.

Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’. Tax relief on large contributions may be spread over several years.

Any contributions in excess of £225,000, whether personal or by the employer, may be subject to income tax on the individual at 40%.

No carry back of pension contributions.

Company Cars 2007/2008 and 2006/07

CO2 Emissions (gm/km)

(round down to nearest 5gm/km)

% of car's list price taxed

Fuel Benefit
(£14,400 x %)

Up to 140

15

2,160

145

16

2,304

150

17

2,448

155

18

2,592

160

19

2,736

165

20

2,880

170

21

3,024

175

22

3,168

180

23

3,312

185

24

3,456

190

25

3,600

195

26

3,744

200

27

3,888

205

28

4,032

210

29

4,176

215

30

4,320

220

31

4,464

225

32

4,608

230

33

4,752

235

34

4,896

240 and above

35

5,040

Company cars
For diesel cars add a 3% supplement, but maximum still 35%.

Discounts apply to certain environmentally friendly cars.

For cars registered before 01.01.98 charge is based on engine size.

The list price includes accessories and is subject to an upper limit of £80,000.

List price is reduced for capital contributions made by the employee up to £ 5,000.

Fuel benefits
The fuel benefit charge is proportionately reduced if provision of private fuel ceases part way through the year.

The fuel benefit is reduced to nil only if the employee pays for all private fuel.

2007/2008                            
Van Benefit £3,000
Fuel Benefit £500

2006/2007
Van Benefit
Under 4 years old £500
Over 4 years old £350

Cars and vans

2007/08 and 2006/07 Rate per mile

Up to 10,000 miles

40p

Over 10,000 miles

25p

Bicycles

20p

Motorcycles

24p

2007/08

£

Overall investment limit

maxi ISA

7,000

mini ISA (stocks, shares and life insurance)

4,000

- cash

3,000

Year to 31/03/2008

Profits Band

Rate %

Small companies rate

0 - 300,000

20

Marginal (small companies) rate

300,001 - 1,500,000

32.75

Full rate

Over 1,500,000

30

Small companies fraction

1/40

The profits are reduced for accounting periods of less than 12 months and for a company with associated companies

Writing Down Allowances

Plant and Machinery*

25% (reducing balance)

Motor Cars**

25% (reducing balance)

£3,000 max

Industrial and Agriculture

Buildings and Hotels

4% (straight line)

* For small businesses: first year allowance (FYAs) of 50% for 24 months from 06.04.06 (01.04.06 for companies). 40% otherwise.

For medium sized businesses: FYAs of 40%

For all businesses: 100% FYAs on expenditure on energy saving plant and machinery.

**100% FYAs on new cars with CO2 emissions not exceeding 120 gm/km until 31.03.08.

6% on certain long life assets.

Standard Rate

17.5%

Reduced Rate

5%

Annual Registration Limit - from 1 April 2007 (01.04.06 - 31.03.07 £61,000)

£64,000

Annual Deregistration Limit - from 1 April 2007 (01.04.06 - 31.03.07 £59,000)

£62,000