Tax Facts 2000/01

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INCOME TAX

VEHICLE BENEFITS

Chargeable on employees earning �8,500 or over (including benefits) and directors.

Car Benefit

The charge is a percentage of the list price

Vehicle Under 4 Years Old

Vehicle 4 Years or Over

Business Mileage

Up to 2,499 miles	35%	26.25%
2,500 - 17,999 miles	25%	18.75%
18,000 miles and over	15%	11.25%

Van Benefit per vehicle	�500	�350

Notes

1) The list price relates to the day before first registration and includes accessories. The price is subject to an upper limit of �80,000.

2) The list price is reduced by the employee's capital contribution when the car is first made available, subject to a maximum deduction of �5,000.

3) The age of the vehicle is determined at the end of the tax year.

4) Special rules apply to cars at least 15 years old with a market value of �15,000 or more, and to second cars.

5) Van benefit includes fuel for private use.

6) Payments by employees may reduce the above benefits.

Car Fuel Benefit	Petrol	Diesel
	�	�
Up to 1400 cc	1,700	2,170
1401 - 2000 cc	2,170	2,170
Over 2000 cc	3,200	3,200
Car fuel benefit is reduced to nil if employee pays for all private fuel.

PENSION PREMIUMS

2000 / 2001
% Limit of net relevant earnings
Age at 6 April 1999	Personal Pensions	Retirement Annuities
35 or under	17.5	17.5
36 - 45	20	17.5
46 - 50	25	17.5
51 - 55	30	20
56 - 60	35	22.5
61 - 74	40	27.5
Subject to maximum earnings of	�91,800	No limit
Term assurance	5% out of above

MAIN SOCIAL SECURITY BENEFITS

Weekly Benefit
	2000 / 01	1999 / 00
Basic Retirement Pension	�	�
- Single person	67.50	66.75
- Married couple	107.90	106.70

Jobseekers Allowance (typical rates)
- Single person	52.20	51.40
- Married couple	81.95	80.65

Child Benefit
- First eligible child	15.00	14.40
- Each subsequent child	10.00	9.60

Statutory Sick Pay
Average weekly earnings �67 or over	60.20

Statutory Maternity Pay
Average weekly earnings �67 or over:
Higher weekly rate (first six weeks) - 90% of weekly earnings
Lower weekly rate (next twelve weeks)	60.20

	2000 / 01	1999 / 00
Starting rate band to	�1,520	�1,500
Tax rate	10%	10%
Basic rate band - next	�26,880	�26,500
Normal rate	23%	23%
Savings income rate	20%	20%
Higher rate band - over	�28,400	�28,000
Tax rate	40%	40%

For 2000 / 01 dividends taxed at 10% on income below �28,400 and 32.5% above that.

Allowances that Reduce Taxable Income
Personal allowance	- under 65	�4,385	�4,335
	- 65 to 74	�5,790	�5,720
	- 75 and over	�6,050	�5,980

Allowances that Reduce Tax
Married couple's allowance
Tax Reduction	- under 65	N/A	�197.00
	- 65 to 74	�518.50	�512.50
	- 75 and over	�525.50	�519.50

'Rent a Room' exempt on gross annual rent

�4,250

Notes

1) Ages are as at the end of the tax year. Ages for MCA relate to the elder spouse. For 2000 / 01, MCA is available only to couples where at least one was aged 65 or over on 5 April 2000.

2) The age related allowances are progressively withdrawn from people with income exceeding �17,000 (1999 / 00 �16,800), reducing first PA and then MCA (only the husband's income is considered). PA cannot fall below �4,385 (1999 / 00 �4,335) and MCA tax reduction cannot fall below �200 (1999 / 00 �197).

MILEAGE ALLOWANCES

Under the Fixed Profit Car Scheme (FPCS), the maximum tax free mileage allowances for employees using their own cars for business are as follows:

2000 / 2001
	First 4,000 Miles	Miles over 4,000
Up to 1000 cc	28p	17p
1001 - 1500 cc	35p	20p
1501 - 2000 cc	45p	25p
Over 2000 cc	63p	36p
Flat rate	40p	22.5p

Payments in excess of FPCS rates - excess is taxable. Payments at less than FPCS rates - employees can claim tax relief for shortfall. Employees can also claim tax relief for some of the interest paid on a loan to buy a car used for business

NATIONAL INSURANCE CONTRIBUTIONS

2000 / 2001
Class 1 (not contracted out)
	Employer	Employee
Payable on weekly earnings over	�84	�76
�76.01 - �84	Nil	10%
�84.01 - �535	12.2%	10%
Over �535	12.2%	�45.90 max
Men 65 and over and women 60 and over	as above	Nil

Class 1A - On car and car fuel benefits	12.2%	Nil

Class 2	- Self employed	�2.00 per week
	Limit of net earnings for exception	�3,825 p.a

Class 3	- Voluntary		�6.55 per week

Class 4*	Self employed on profits	7%
	�4,385 - �27,820	�1,640.45 max.
*Exemption applies if state retirement age is reached by April 6 2000.