***************************************************************** -> This file contains some quotations about taxation, and summary income tax data for the UK and Ireland. -> The file has been supplied as an integral part of YOUR-PLAN. This is a personal financial planning software package developed as a shareware package for use on a 'try-before-you-buy' basis by Invest-Tech Limited. For contact details, see end of this file. -> To view this file page-by-page, type "TYPE TAX.TXT|MORE" To print this file, type "PRINT TAX.TXT" (Press CTRL+BREAK to quit now) ***************************************************************** INTRODUCTION ============ YOUR-PLAN (r2.1) contains a facility to enable users to enter basic tax data (allowances and rates) so as to enable YOUR-PLAN to calculate net monthly salaries and to apply marginal tax rates to any changes in salary etc. Basic tax data for the UK and Irish systems is presented below after a series of quotations by famous and infamous people on the subject of "tax". ***************************************************************** QUOTES ABOUT TAX ================ The avoidance of taxes is the only intellectual pursuit that still carries any reward - John Maynard Keynes The difference between tax avoidance and tax evasion is the thickness of a prison wall - Denis Healey We don't pay taxes. The little people pay taxes - Leona Helmsley at her tax fraud trial, 1989 The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the least possible amount of hissing - J. B. Colbert, 1665 Taxing is an easy business. Any projector can contrive new compositions, any bungler can add to the old. - Edmund Burke Be at the pains of putting down every single item of expenditure whatsoever every day which could possibly be twisted into a professional expense and remember to lump in all the doubtfulls - Hilaire Belloc There is one difference between a tax collector and a taxidermist - the taxidermist leaves the hide - Mortimer Caplan (Tax) has made more liars out of the American people than golf - Will Rogers There is no such thing as a good tax - Winston Churchill In this world nothing is certain but death and taxes - Benjamin Franklin There is just one thing I can promise you about the outer-space progamme - your tax-dollar will go further - Werner von Braun ***************************************************************** BASIC TAX RATES ETC. - UK (1993/4 and 1994/5) ============================================= NB: Depending on your printer set-up, the pound currency sign may appear as a blank space or as #. Try switching the printer to using an "IBM" symbol set. ***************************** The following rates etc. refer to the tax year ending April 1994: Income tax rates ---------------- Up to 2,500 20% œ2,501-œ23,700 25% Excess over œ23,700 40% Main personal allowances: ------------------------ Personal œ3,445 Married couple's œ1,720 Single parent addition œ1,720 Other significant reliefs ------------------------- Mortgage interest relief (at 25% rate only) on loans of up to œ30,000. Annual exemption for capital gains is œ5,800 for individuals. *************************** The following rates etc. refer to the tax year 1994/5 and are based on the changes announced in the November 1993 Budget. Income tax rates ---------------- Up to 3,000 20% œ3,001-œ23,700 25% Excess over œ23,700 40% Main personal allowances: ------------------------ Personal (under 65s) œ3,445 Married couple's (under 65s) œ1,720 (at 20% tax rate only) Single parent addition œ1,720 (at 20% tax rate only) Other significant reliefs ------------------------- Mortgage interest relief (at 20% rate only) on loans of up to œ30,000. Annual exemption for capital gains is œ5,800 for individuals. *************************** When assessing your tax position, you may also need to take account of age allowances, dividends, benefits-in-kind (company car, cheap loans etc.), capital gains, BES and (from 1st January 1994) Enterprise Investment Scheme relief etc. When entering details of deductions into YOUR-PLAN, you should allow for National Insurance Contributions. The current standard rate for employees is 2% on the first œ56/week and 9% on weekly earnings of between œ56 and œ420. After April 1994, the rate for weekly earnings between œ57 and œ430 will be increased to 10%. The foregoing is a brief synopsis of the main provisions etc. to enable you to use YOUR-PLAN to do some basic planning. Consult your professional adviser for specific guidance especially if your tax position is complex or unclear. *************************************************************** BASIC TAX RATES ETC. - IRELAND (1993/4) ======================================= NB: Depending on your printer set-up, the pound currency sign may appear as a blank space or as #. Try switching the printer to using an "IBM" symbol set. Income tax rates ---------------- Rate Married Single/widowed ---- ------- -------------- 27% First œ15,350 First œ7,675 48% Balance Balance Main personal allowances ------------------------ Single œ2,175 Married œ4,350 Widowed œ2,675 One parent family allowance: - Widowed œ1,675 - Other œ2,175 PRSI Allowance œ286 PAYE Allowance œ800 You should consult tax tables etc. for details of other allowances applicable to widowed people, older people etc. and for exemption limits. The ceiling for mortgage relief is œ5,000 for a married couple (œ2,500 for single person). The maximum amount that can be claimed is the lower of 90% of the amount paid and the ceiling. Special reliefs apply to widowed people, first-time buyers etc. The employees PRSI rate is 5.5% up to a maximum of œ20,000. The health contribution (1.25%), employment & training (1%), temporary income (1%) levies also apply to most employees. In assessing taxation, account must also be taken of capital gains tax (40% with indexation and allowances of œ1,000 for single people and œ2,000 for a married couple), BES relief, residential property tax, capital acquisitions tax etc. The foregoing is a brief synopsis of the main provisions etc. to enable you to use YOUR-PLAN to do some basic planning. Consult your professional adviser for specific guidance especially if your tax position is complex or unclear. ***************************************************************** YOUR-PLAN (c) Copyright Invest-Tech Limited 1992, 1993, 1994 All Rights Reserved Invest-Tech Limited 27 Ardmeen Park, Blackrock, Co. Dublin, Ireland Irish Tel: 283 4083 UK Tel: 0232-315454 (Call 9 to 9 weekdays and 10 to 6 weekends - GMT/BST) Fax: 661 3130 Fax codes: Irish:01- UK:010-353-1- Inter'l:+353-1- ***************************************************************** To view this file page-by-page, type "TYPE TAX.TXT|MORE" *** End of TAX.TXT file ***