2004/2005

RATES AND ALLOWANCES
2004-2005

Income Tax
Income
tax allowances		 2004-05
(£)
Personal
allowance		 4,745
Personal
allowance for people aged 65-74		 6,830
Personal
allowance for people aged 75 and over		 6,950
Income limit
for age-related allowances		 18,900
Married
couple’s allowance for people born before 6 April 1935		 5,725
Married
couple’s allowance – aged 75 or more		 5,795
Minimum
amount of married couple’s allowance		 2,210
Blind
person’s allowance		 1,560
Taxable
bands
Starting
rate 10%		 0
- 2,020
Basic rate
22%		 2,021 -
31,400
Higher rate
40%		 Over
31,400

National Insurance
Item  
Lower
Earnings Limit		 £79
per week
Upper
Earnings Limit		 £610
per week
Primary
Threshold		 £91
per week
Secondary
Threshold		 £91
per week
Employee’s
contributions		 11%
of £91.01 to £610 per week  1% above £610 per week
Employee’s
Contracted-out Rebate		 1.
6%
Married
Women Reduced Rate		 4.85%
of £91.01 to £610 per week  1% above £610 per week
Employer’s
Contribution Rates		 12.8%
on earnings above £91 per week
Employers’
contracted-out rebate, salary-related schemes		 3.5%
Employers’
contracted-out rebate, money-purchase schemes		 1.00%
Class 2
Self employed Contribution		 £2.05
Class 2
Small Earnings Exception		 £4,215
per year
Special
Class 2 rate for share fishermen		 £2.70
Special
Class 2 rate for volunteer development workers		 £3.95
Class 3
(voluntary) Contribution		 £7.15
Class 4
- Contribution Rate		 8%
of £4,745 to £31,720 per year 1% above £31,720 per year
Class 4
Contributions – Lower Profits Limit		 £4,745
per year
Class 4
Contributions – Upper Profits Limit		 £31,720
per year

Capital gains tax annual
exempt amount

Individuals
etc		 8,200
Other
trustees		 4,100

Inheritance tax
threshold

 263,000

Pension schemes earnings
cap

 102,000

Corporation Tax
Starting
rate 0%		 0
- 10,000
Marginal
relief		 10,001 – 50,000
Small
companies’ rate 19%		 50,001 – 300,000
Marginal
relief		 300,001 – 1,500,000
Main rate
30%		 1,500,001 or more

Approved Mileage Rates
Cars
and Vans – First 10000 business miles in the tax year		 40p
Cars and
Vans – Each mile over 10000 business miles in the tax year		 25p
Motorcycles
- First 10000 business miles in the tax year		 24p
Motorcycles
- Each mile over 10000 business miles in the tax year		 24p
Bicycles
- First 10000 business miles in the tax year		 20p
Bicycles -
Each mile over 10000 business miles in the tax year		  20p

Value Added Tax
Standard
rate		 17.50%
Annual
Registration limit		 £58,000
De-registration
limit		 £56,000

Key Assessment Dates
Second
2003/2004 payment on account for all taxpayers		 31 July 2004
Tax
return deadline if the Revenue is to calculate tax liability		 30 September 2004
Final
deadline for submitting tax returns, payment of balance of tax liability
for 2003/2004 and first payment on account for 2004/2005		 31 January
2005