M.PARMAR & Co.

	First 10,000 business miles in the tax year	Each mile over 10,000 miles in the tax year	Extra passenger making same trip
Cars and vans	40p	25p	5p
Motor cycles	24p	24p	N/A
Bicycles	20p	20p	N/A
These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

	Writing Down Allowance
Plant and machinery*	25% reducing balance #
Motor cars	25% reducing balance (£3,000 max)
Industrial buildings	4% (straight line)
Agricultural buildings	4% (straight line)
Hotels	4% (straight line)
Research & Development	100%
Commercial/industrial buildings in an enterprise zone	100%
Capital allowances allow the cost of capital assets to be written off against taxable profits. They replace the charge for depreciation in the business accounts, which is not allowable for tax relief. For small businesses: first year allowances (FYAs) of 40% for 12 months from 6.4.05 (1.4.05 for companies). FYAs of 50% from 6.4.06 (1.4.06 for companies). A small firm is defined as a business that satisfies any two of the following conditions: (a) turnover £5,600,000 or less (b) assets £2,800,000 or less (c) not more than 50 employees. For medium-sized businesses: FYAs of 40%.A medium firm is defined as a business that satisfies any two of the following conditions: (a) turnover £22,800,000 or less (b) assets £11,400,000 or less (c) not more than 250 employees. For all businesses: 100% FYAs on expenditure on energy saving plant and machinery. *100% FYAs on new cars with CO2 emissions not exceeding 120 gm/km until 31.3.08. # 6% on certain life long assets.

Capital allowances allow the cost of capital assets to be written off against taxable profits. They replace the charge for depreciation in the business accounts, which is not allowable for tax relief.

*For small businesses: first year allowances (FYAs) of 40% for 12 months from 6.4.05 (1.4.05 for companies). FYAs of 50% from 6.4.06 (1.4.06 for companies). A small firm is defined as a business that satisfies any two of the following conditions: (a) turnover £5,600,000 or less (b) assets £2,800,000 or less (c) not more than 50 employees.

For medium-sized businesses: FYAs of 40%.A medium firm is defined as a business that satisfies any two of the following conditions: (a) turnover £22,800,000 or less (b) assets £11,400,000 or less (c) not more than 250 employees.

For all businesses: 100% FYAs on expenditure on energy saving plant and machinery.

**100% FYAs on new cars with CO2 emissions not exceeding 120 gm/km until 31.3.08.

# 6% on certain life long assets.

	% of list price (max £80,000)
CO2 emissions (2006/07) grams per kilometre	Petrol	Diesel
140	15	18
145	16	19
150	17	20
155	18	21
160	19	22
165	20	23
170	21	24
175	22	25
180	23	26
185	24	27
190	25	28
195	26	29
200	27	30
205	28	31
210	29	32
215	30	33
220	31	34
225	32	35
230	33	35
235	34	35
240	35	35
To find out how much CO2 your company car emits,see... the car’s V5 registration document your dealer the data pages of car magazines (current models) the Vehicle Certification Agency www.vca.gov.uk For cars registered from 1 January 1998 with no CO2 emissions figures, the tax charge is 15% of the list price for engines up to 1,400 cc, 22% for engines of 1,401 cc to 2,000 cc and 32% for engines above 2,000 cc. The list price includes accessories and is subject to an upper limit of £80,000. List price is reduced for capital contributions made by the employee up to £5,000.
Fuel Benefits For 2006/07, car fuel is calculated by applying the above car benefit percentage to a figure of £14,400. The fuel benefit charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Corporation Tax On Profits - £ per year (unless stated)
Rate	Financial Year to 31/3/2007	Financial Year to 31/3/2006
Starting rate: 0%	N/A	0 -10,000
Marginal relief	N/A	10,001- £50,000
Marginal relief fraction	N/A	19/400
Effective marginal rate	N/A	23.75%
Small companies rate:19%	0 - 300,000	50,001 - 300,000
Marginal relief	300,001 - 1,500,000	300,001 - 1,500,000
Marginal relief fraction	11/400	11/400
Effective marginal rate	32.75%	32.75%
Main rate: 30%	1,500,001 or more	1,500,001 or more
Non-corporate distribution rate	N/A	19%
The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

Taxable Bands	2006-07 (£)	2005-06 (£)
Starting rate 10%	0 - 2,150	0 - 2 090
Basic rate 22%	2,150 - 33,300	2,090 - 32,400
Higher rate 40%	over 33,300	Over 32,400
Savings income is generally treated as the highest part of total income. Interest is taxed at 10% within the starting rate band, 20% within the basic rate band and 40% thereafter. Income from dividends is taxed at 10% within the starting and basic rate bands and at 32.5% thereafter (these rates are applied to the dividend grossed-up by a tax credit of 1/9).

	2006-07 (£)	2005-06 (£)
Personal allowance	5,035	4,895
Personal allowance for people aged 65-74 in year of assessment	7,280	7,090
Personal allowance for people aged 75 and over in year of assessment	7,420	7,220
Income limit for age-related allowances	20,100	19,500
Married couple's allowance for people born before 6 April 1935 (relief at 10%)	6,065	5,905
Married couple's allowance - aged 75 or more (relief at 10%)	6,135	5,975
Minimum amount of married couple's allowance	2,350	2,280
Blind person's allowance	1,660	1,610

Year	Amount (£)
2006-07	285,000
2005-06	275,000
Amounts above the threshold are taxed at 40%. Most transfers between spouses and civil partners are exempt. Business Property Relief business or interest therein - 100% qualifying shareholders in unquoted* companies - 100% land, buildings, machinery, or plant used by transferor's controlled company or partnership - 50% Agricultural property - 50% or 100% *Unquoted companies include those listed on AIM Chargeable lifetime transfers are initially charged at 20%. Other Reliefs: Annual gifts of up to £3000 per donor are exempt. Small gifts £250 Marriage gifts... - parent £5,000 - grandparent £2,500 - bride/groom £2,500 - other £1,000
Reduced charge on gifts within seven years of death:
Years before death	0-3	3-4	4-5	5-6	6-7
% of death charge	100	80	60	40	20

Annual exempt amount	Overall Limit £	Cash Limit £
2006/07	7,000	3,000
2005/06	7,000	3,000
Savings are exempt from income tax and capital gains tax.

£ per week	2006-07	2005-06
Employees
Lower earnings limit, primary Class 1	£84	£82
Upper earnings limit, primary Class 1	£645	£630
Primary threshold	£97	£94
Secondary threshold	£97	£94
Employees’ primary Class 1 rate between primary threshold and upper earnings limit	11%	11%
Employees - primary Class 1 rate above upper earnings limit	1%	1%
Employees - contracted-out rebate	1.6%	1.6%
Married women’s reduced rate between primary threshold and upper earnings limit	4.85%	4.85%
Married women’s rate above upper earnings limit	1%	1%
Employers’ secondary Class 1 rate above secondary threshold	12.8%	12.8%
Employers’ contracted-out rebate, salary-related schemes	3.5%	3.5%
Employers’ contracted-out rebate, money-purchase schemes	1%	1%
Employees' rates are reduced to 4.85% for married women with valid certificates of election but the 1% rate above £645 still applies. Rates are nil for men over 65 and women over 60. Normal employers' contributions are still payable.
Class 1A and Class 1B	12.8%	12.8%
Class 2 rate (self-employed)	£2.10	£2.10
Class 2 small earnings exception	£4,465 per year	£4,345 per year
Special Class 2 rate for share fishermen	£2.75	£2.75
Special Class 2 rate for volunteer development workers	£4.20	£4.10
Class 3 rate (voluntary contributions)	£7.55	£7.35
Class 4 lower profits limit (self-employed)	£5,035 per year	£4,895 per year
Class 4 upper profits limit (self-employed)	£33,540 per year	£32,760 per year
Class 4 rate between lower profits limit and upper profits limit	8%	8%
Class 4 rate above upper profits limit	1%	1%

Weekly Benefit	2006-07	2005-06
Basic retirement pension - single person	£84.25	£82.05
Basic retirement pension - married couple	£134.75	£131.20
Statutory pay rates - average weekly earnings £84 (£82) or over
Statutory Sick Pay	£70.05	£68.20
Statutory Maternity Pay - first six weeks	90% of weekly earnings
Statutory Maternity Pay - next 20 weeks	£108.85*	£106.00*
Statutory Paternity Pay - two weeks	£108.85*	£106.00*
Statutory Adoption Pay - 26 weeks	£108.85*	£106.00*
Jobseekers Allowance - Single Person (over 25)	£57.45	£56.20
Jobseekers Allowance - Married Couple	£90.10	£88.15
* Or 90% of weekly earnings if this is lower

Rate	Land in disadvantaged areas		All other land in the UK
Rate	Residential	Non-residential	Residential	Non-residential
Zero	£0 - £150,000	£0 - £150,000	£0 - £125,000	£0 - £150,000
1%	Over £150,000 - £250,000	Over £150,000 - £250,000	Over £125,000 - £250,000	Over £150,000 - £250,000
3%	Over £250,000 - £500,000	Over £250,000 - £500,000	Over £250,000 - £500,000	Over £250,000 - £500,000
4%	Over £500,000	Over £500,000	Over £500,000	Over £500,000

Rate	Net present value of rent
Rate	Residential	Non-residential
Zero	£0 - £125,000	£0 - £150,000
1%	Over £125,000	Over £150,000

Working Tax Credit - £ per year (unless stated)
Rates and Thresholds	2006-07	2005-06
Basic element	1,665	1,620
Couple and lone parent element	1,640	1,595
30 hour element	680	660
Disabled worker element	2,225	2,165
Severe disability element	945	920
50+ Return to work payment (16-29 hours)	1,140	1,110
50+ Return to work payment (30+ hours)	1,705	1,660

Child Benefit/Guardian Allowance - £ per week
Rates	2006-07	2005-06
Eldest/Only Child	£17.45	£17.00
Other Children	£11.70	£11.40
Eldest/Only Child (Lone Parent Rate)	£17.55	£17.55
Guardian’s Allowance	£12.50	£12.20

Standard Rate		17.5%
VAT Fraction		7/47
Lower Rate		5%
Registration level from 1 April 2006		£61,000 pa
Deregistration limit from 1 April 2006		£59,000 pa
Cash accounting scheme - up to		£660,000
Optional flat rate scheme - up to		£150,000
Annual accounting scheme - up to		£1,350,000

VAT fuel scale charges from 1 May 2006
	Quarterly Returns Scale Charge
Cylinder capacity of vehicle	Petrol £	VAT £	Diesel £	VAT £
Up to 1400cc	273	40.66	260	38.72
1401cc to 2000cc	346	51.53	260	38.72
Over 2000cc	508	75.66	331	49.30

Income thresholds and withdrawal rates - £ per year (unless stated)
Rates and Thresholds	2006-07	2005-06
First income threshold	5,220	5,220
First withdrawal rate (per cent)	37%	37%
Second income threshold	50,000	50,000
Second withdrawal rate (per cent)	6.67%	6.67%
First threshold for those entitled to Child Tax Credit only	14,155	13,910
Income disregard	25,000	2,500