DOC

Re New Tax Year 2006

By Raymond Robinson,2014-03-20 14:58
9 views 0
Re New Tax Year 2006

    Documentation Required by Payroll Office so that correct tax deductions can be made.

    In accordance with P.A.Y.E requirements we are obliged to deduct Income Tax from all emoluments on the emergency basis until we receive one of the following documents:

    ; Certificate of Tax Credits and Standard Rate Cut-Off (referenced to NUIM)

    ; P45 from your previous employer

    ; An Exemption Certificate

    Academic Staff:

    The following grades have a standard flat rate expense allowance. If this does not appear on your Tax Credits and Standard Rate Cut-off Point Notice, you should inform the Inspector of Taxes of your grade and it will be added accordingly. These rates have not changed since January 2003.

    Professor:

    ?471.00 p.a.

    Assoc. Prof., Senior Lecturer, Lecturer, Junior Lecturer and Assistant Lecturer:

    ?402.00 p.a.

    Part-Time Lecturer:

    ?217.00 p.a.

Tax Credits, Reliefs and Rates for the income tax years 2005 and 2006

    The following chart gives details of the main personal tax credits for the tax years 2005 and 2006.

    Personal Tax Credits

    Tax Year Tax Year 2005 2006 Personal Tax Credits

    ? ?

    Single Person’s Tax Credit 1,5801,630Married Person’s Tax Credit 3,160 3,260 Widowed Person’s Tax Credit - qualifying for One Parent 1,580 1,630 Family Tax Credit 1,980 2,130 - without dependent children 3,160 3,260 - in year of bereavement

    One-Parent Family Tax

    Credit

    (with qualifying dependent 1,580 1,630 children) (See Note 1)

    Widowed, Deserted, Separated

    or Unmarried

     Widowed Parent Tax Credit

    Bereaved in 2005 -3,100Bereaved in 2004 2,800 2,600 Bereaved in 2003 2,300 2,100 Bereaved in 2002 1,800 1,600 Bereaved in 2001 1,300 1,100 Bereaved in 2000/2001 800 - Home Carer’s Tax Credit 770 770 (Max)

    PAYE Tax Credit 1,270 1,490

     Age Tax Credit

    205 250 (a) Single/Widowed

    410 500 (b) Married

    Incapacitated Child Tax 1,000 1,500 Credit (See Note 1)

    Dependent Relative Tax 60 80 Credit (See Note 1)

    Blind Person’s Tax Credit

    (single person) 1,000 1,500 (one spouse blind) 1,000 1,500 (both spouses blind) 2,000 3,000

    Additional Allowance for *825 *825 Guide Dog

    Incapacitated Person - Allowance for Employing a *30,000 max *30,000 max Carer

    * Relief in respect of a Guide Dog and for Employing a Carer are

    allowable at the individual’s highest rate of tax i.e. 20% or 42% as appropriate in both years.

    Tax Year Tax Year 2005 2006 Note 1: The child’s/relative’s income ? ? limits are:

    One-Parent Family Tax Credit nil nil Incapacitated Child Tax Credit nil nil Dependent Relative Tax Credit *10,997 *11,913 *In the case of Dependent Relative Tax Credit, if the relative’s income exceeds

    the relevant limit no tax credit is due.

Exemption Limits

    Tax Year Tax Year

    2005 2006 Personal Circumstances

    ? ?

    Single/Widowed under 65 5,210 5,210 65 years of age or over 16,500 17,000 Married under 65 10,420 10,420 65 years of age or over 33,000 34,000 Additional for Dependent Children 575 575 1st and 2nd child (each) 830 830 Each subsequent child 40% 40% Marginal Relief Tax Rate

Tax Rates and Tax Bands

    Tax Year Tax Year

    2005 2006 Personal Circumstances

    ? ?

    32,000 @ 20%

    Balance @

    29,400@ 20% 42% Single/Widowed

     Balance @ 42% without dependent children

    36,000 @ 20%

    33,400@ 20% Balance @ Single/Widowed

    Balance @ 42% 42% qualifying for One-Parent Family tax

     credit

    38,400@ 20% 41,000 @ 20%

    Balance @ 42% Balance @ Married couple

     42% (one spouse with income)

    38,400@ 20%

    (with an 41,000 @ 20% Married couple

    increase (with an (both spouses with income)

    of 19,000 increase

    max.) of 20,400

    Balance @ 42% max.)

    Balance @

    42% Note: The increase in the standard rate tax band is restricted to the

    lower of ?20,400 in 2005/?23,000 in 2006 or the amount of the

    income of the spouse with the lower income. The increase is not

    transferable between spouses.

Rent-a-Room Relief

    Where a room (or rooms) in a person’s sole or main residence is (are) let as

    residential accommodation, gross annual rental income of up to ?7,620 is exempt from tax. Relief in respect of mortgage interest relief is not affected. The relevant Capital Gains Tax/Stamp Duty provisions are also not affected

Rent Relief for Private Rented Accommodation

    Relief is due at the standard rate of tax (20%) in the tax years 2005 and 2006 subject to the following upper limits:

    Tax Year 2005