Frequently Ask Question

Q.What is the Personal Tax Allowance?
A. The Personal Tax Allowance is the amount you can earn before you need to pay Income Tax. If you earn less than the allowance then no income tax is paid. The Personal allowance for people under 65yrs of age from April 2012 is £7475.

Q. What is my National Insurance Contribution?
A. If you earn less than £139 per week, no NI is payable. NI is payable on ALL employments if you earn more than £139 per week.

Q. How is my car taxed as a benefit?

A. A car is a tax benefit for all Directors. Employees earning more than £8500 per annum (including the benefit) are taxed. Therefore, if an employee is earning £5000 per annum and the car benefit works out at £4400 per annum, you are earning £9400 and are taxed on the benefit. Cars are taxed as a percentage of their list price when new based on their CO2 emissions.The lower the emission the less tax you pay. The chart below shows the emission and the percentage of the list price when new that is taxed as a benefit.

Grams per Km 135 140 145 150 155 160 165 170 175 180 185 190 195 200 205 210 215 220 225 230 235
% Of Price Taxed 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

To find out your vehicles` CO2 emission, please visit www.smmt.co.uk

Q. What about cars that run on alternative fuels?
A. These vehicles are discounted as follows

Type of car

Battery

Hybrid

LPG

LPG & Petrol

Discount

15% of list price less 6% discount

Normal % of list price less 2% discount and further 1% discount for each 20g/Km that co2 figure is below level of minimum charge for year

Normal % of list price less 1% discount and further 1% discount for each 20g/Km that co2 figure is below level of minimum charge for year

Registered after Jan 2000 as per LPG cars

Q. How do I pay the Revenue my tax bill electronically?
A. This is the best way to pay your tax bill. If you pay by cheque you must allow 7 days for the funds to clear which means that the 31st January 2009 deadline is really 24th January!
When using this electronic system you will need to provide your bank or building society with the Revenue bank account details. These are: –

Accounting & Payment Service (A&PS) Sort Code Account Number Account Name
Accounts Office Cumbernauld 10 51 67 23444401 AO Cumbernauld
Accounts Office Shipley 10 50 41 23456000 AO Shipley

 

Reference Number

You will also need to provide your Self Assessment payment reference number (sometimes referred to as the UTR). This is shown on the payslip which the Revenue send and is located in the reference box. The reference number is made up of 10 digits followed by the letter “K”, for example 1234567890K. The example payslip (PDF format, 437K) shows where to find your reference. It is important that you show the reference with no gaps between the characters. If you do not, it could lead to delays in updating your account.

If you have an FAQ you would like included here to help other surfers please email it to marc@mbbfcca.co.uk