The following tax rates and allowances are to be used in answering the questions: Rates of Income Tax Basic rate 0 37,500 Higher rate from 37,501 to 150,000 Additional rate over 150,000 20% 40% 45% Savings income is taxed at 0% up to the starting rate limit of 5,000. The personal savings allowance is 1,000 for basic rate taxpayers, 500 for higher rate taxpayers and nil for additional rate taxpayers. Dividend income is taxed at 7.5% up to 37,500; 32.5% between 37,501 and 150,000; and then 38.1% over 150,000. The dividend allowance is 2,000. Personal Allowances Personal allowance = 12,500 If adjusted net income exceeds 100,000 the basic personal allowance is reduced by one- half of the excess. Car Benefit Applicable percentage = 50g/km or less 16% 51 to 75g/km 19% 76g/km 94g/km 22% 95g/km or more 23% Cars over 95 gm/km: 23% PLUS CO2-95 Add 4% if it is a diesel car (except RDE2 cars). The maximum applicable percentage is 37% Car Fuel Benefit The statutory figure is 24,100. Mileage rates 45p Cars: First 10,000 business miles Additional business miles 25p Rates of Interest Official rate of interest 2.5% National Insurance Contributions Class 1 Employees The rate of 12% is paid on earnings between 8,632 and 50,000 The rate of 2% is paid on all earnings above 50,000 Employers The rate of 13.8% is paid on all earnings over 8,632 Annual Employment Allowance is 3,000. Class 1A Employers pay 13.8% on taxable benefits provided to employees. Class 2 Annual threshold 6,365 Weekly contribution 3.00 Class 4 Lower profits limit 8,632 Upper profits limit 50,000 Rate between lower and upper limits 9% Rate beyond upper limit 2% Corporation Tax Rate of Tax 19% Profit Threshold 1,500,000 Capital Allowances Writing down allowance per year Plant and Machinery main pool 18% Annual investment allowance 1,000,000 Cars : First Year Allowances on new electric and new low emission cars