Tax Facts 1999/2000

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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	1,210	1,540
1401 - 2000 cc	1,540	1,540
Over 2000 cc	2,270	2,270
Car fuel benefit is reduced to nil if employee pays for all private fuel.

PENSION PREMIUMS

1999 / 2000
% 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	�90,600	No limit
Term assurance	5% out of above

MAIN SOCIAL SECURITY BENEFITS

Weekly Benefit
	1999 / 00	1998 / 99
Basic Retirement Pension	�	�
- Single person	66.75	64.70
- Married couple	106.70	103.40

Jobseekers Allowance (typical rates)
- Single person	51.40	50.35
- Married couple	80.65	79.00

Child Benefit
- First eligible child	14.40	11.45
- Each subsequent child	9.60	9.30

Statutory Sick Pay
Average weekly earnings �66 or over	59.55

Statutory Maternity Pay
Average weekly earnings �66 or over:
Higher weekly rate (first six weeks) - 90% of weekly earnings
Lower weekly rate (next twelve weeks)	59.55

	1999 / 00	1998 / 99
Starting rate band to	�1,500	�4,300
Tax rate	10%	20%
Basic rate band - next	�26,500	�22,800
Normal rate	23%	23%
Savings income rate	20%	20%
Higher rate band - over	�28,000	�27,100
Tax rate	40%	40%

For 1999 / 00 dividends taxed at 10% on income below �28,000 and 32.5% above that.

Allowances that Reduce Taxable Income
Personal allowance	- under 65	�4,335	�4,195
	- 65 to 74	�5,720	�5,410
	- 75 and over	�5,980	�5,600

Allowances that Reduce Tax
Married couple's allowance
Tax Reduction	- under 65	�197.00	�285.00
	- 65 to 74	�512.50	�495.75
	- 75 and over	�519.50	�501.75

'Rent a Room' exempt on gross annual rent

�4,250

Notes

1) Additional personal allowance, widow's bereavement allowance, and relief for maintenance payments each give a maximum tax reduction of �197 (1998 / 99 �285).

2) Ages are at the end of the tax year. Ages for higher rates of married couple's allowance relate to elder of husband or wife.

3) The higher rates of personal allowances are reduced by �1 for each �2 of excess income over �16,800 (1998 / 99 �16,200) until the basic allowance is reached. Similar limits apply to higher rates of married couple's allowance - the loss of tax reduction is 10p for each �2 of excess income (only the husband's income is taken into account).

4) Mortgage Interest Relief 10% - loan limit �30,000.

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:

1999 / 2000
	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

1999 / 2000
Class 1 (not contracted out)
	Employer	Employee
Payable on weekly earnings over	�83	�66
�66.01 - �83	Nil	10%
�83.01 - �500	12.2%	10%
Over �500	12.2%	�43.40 max
Men 65 and over and women 60 and over	as above	as above

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

Class 2	- Self employed	�6.55 per week
	Limit of net earnings for exception	�3,770 p.a

Class 3	- Voluntary		�6.45 per week

Class 4*	Self employed on profits	6%
	�7,350 - �26,000	�1,108.20 max.
*Exemption applies if state retirement age is reached by April 6 1999.