Business Tax Rates and Bands
|2017/18 to 2021/22||2015/16 to 2016/17||2014/15||2013/14||2012/13||2011/12||2010/11|
|Rate - Profits £||Effective %||Effective %||Effective %||Effective %||Effective %||Effective %||Effective %|
|Small - 0 - 300,000||19||20||20||20||20||20||21|
|Marginal - 300,001 - 1,500,000||19||20||21.25||23.75||25||27.5||29.75|
|Main - 1,500,001 & above||19||20||21||23||24||26||28|
Finance Act 2021 provides that from April 2023, the main rate of Corporation Tax will increase to 25% for companies with chargeable profits over £250,000:
- Companies with chargeable profits of £50,000 or less will still be liable to tax at the current rate of 19%.
- Companies with chargeable profits of £50,001 to £250,000 will pay tax at 25% but will have the benefit of marginal relief.
- The marginal rate fraction will be 3/200ths.
- The upper and lower limits of the new chargeable profits bands will be apportioned for the number of associated companies in a group.
Capital AllowancesCorporation tax super-deduction on certain plant and machinery 130%
First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km 100%
Corporation tax FYA on long-life assets, integral features of buildings, etc. 50%
Annual Investment Allowance (AIA) £1,000,000 (£200,000 from 1 January 2022)
Writing Down Allowance
Long-life assets, integral features of buildings, cars over 50g/km 6%
Other plant and machinery 18%
Structures and Buildings Allowance 3%
Car, Van & Fuel Benefits2021/22
|Cars registered pre 6.04.2020||Cars registered after 5.04.2020|
|CO2 emissions g/km||% of list price|
|% of list price|
|Electric range - 130 or more||2||1|
|70 - 129||5||4|
|40 - 69||8||7|
|30 - 39||12||11|
|For every extra 5||+1||+1|
|160 and above||37||n/a|
|165 and above||n/a||37|
For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 ﬁgure does not end in a 5 or 0 round down to the nearest 5 or 0.
|Car fuel beneﬁt||£24,600|
|Van fuel beneﬁt||£669|
Value Added Tax
|From 1.04.2021||From 1.04.2020|
|Annual Registration Limit||£85,000||£85,000|
|Annual Deregistration Limit||£83,000||£83,000|
*12.5% for hospitality and tourism from 1 October 2021 - 31 March 2022
Whatever your circumstances, whether you have just set up a business or just are looking to see what we as accountants can offer you, we provide a free consultation. These meetings will be at our cost and therefore there is nothing to lose by allowing us to show you how we will be able to assist you or your business.
To arrange a free no obligation consultation, please do not hesitate to get in touch.
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