Tax Rates Cards

Please find below our Tax Rates Card and a few highlights following the 2012 Budget Report:

SJD Accountancy Tax Rates 2012/2013

Income Tax

  • April 2013 - personal allowance will rise to £9,205 from £8,105 for 2012/13. This will mean the average tax payer will be £220 better.
  • An additional 300,000 will be drawn into the higher rate - 40% - tax band from 2013/14 as the threshold is reduced from £42,475 to £41,450.
  • April 2013, the 50p top rate of tax will be cut to 45p. With a dividend rate of 37.5% (30.56% effective rate).
  • Age-related allowances for pensioners to be simplified over time, starting in April 2013, creating a single personal allowance for all.

Self Employed

  • From April 2013 an introduction of a simplified tax system for small unincorporated firms with a turnover of up to £77,000.

Capital Gains Tax

  • The annual allowance of £10,600 will remain for 2012/13 and will rise in line with CPI from 6th April 2013.

VAT and Indirect Taxes

  • VAT registration threshold to increase to £77,000 from £73,000 on 1st April 2012. In line the de-registration limits have risen from £71,000 to £75,000.
  • From 21st March, new stamp duty level of 7% for homes worth more than £2m. Any such homes bought through companies will pay 15%.

Child Benefit

  • This will be phased out when someone in a household has income in excess of £50,000. It will fall by 1% for every £100 earned over £50,000. Households with an income of £60,000 or over will lose the entirety of the benefit. This will take effect via the tax system so many more people will be required to self assess.

Pensions

  • Automatic review of state pension age to ensure it keeps pace with increasing life spans.
  • New single-tier state pension for future pensioners to be set at about £140 and based on contributions.

Savings

  • In April 2012, the ISA allowance will rise to £11,280 (from £10,680). Up to £5,640 of this can be saved in cash with one ISA provider. The remainder can be invested in stocks and shares with either the same or a different ISA provider.

IR35

  • Personal service companies and IR35 – The Government will introduce a package of measures to tackle avoidance through the use of personal service companies and to make the IR35 legislation easier to understand for those who are genuinely in business.

For further advice please call our New Client Services helpdesk on 0500 152500 / 01442 275789 or email nikki.hanlon@sjdaccountancy.com

About SJD Accountancy

SJD Accountancy is the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors and freelancers. We've been acting for clients across the UK since 1992 and have more than 11,000 already.

We are the only national specialist firm of accountants with offices in all major UK cities, so you’ll never be far from your accountant. SJD also has more qualified staff than any other firm in our market, with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA. You’ll also be pleased to know that we are one of the lowest priced as well. All of our clients receive:

• Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings - tax is complicated and sometimes only a meeting will do.
• Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
• Money back service guarantee. All your telephone calls and emails will be answered the same day or we will refund your monthly fee.
• Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.

We offer an all inclusive low cost monthly package which includes completion of accounts, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns. 

All this for a fixed monthly fee of £110 plus VAT, which is one of the lowest prices in the market.

If you have any further questions you can contact our Client Liaison Team on 0500 152500 / 01442 275789 or email michelle.turbutt@sjdaccountancy.com

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!

You may also find the following pages, guides and case studies useful:

Take home pay calculator - How much could you be taking home
Contractor FAQ - All your frequently asked questions and their answers
First time Contracting or Freelancing? - A summary of the alternatives along with pros and cons
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Limited or Umbrella? Can't decide? - We help you decide which is best for you
Take home pay case studies - Examples of contractors using limited and umbrella companies
Expenses Guide - Know exactly what you can claim
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35

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