Tax & National Insurance Rates, Allowances & Thresholds
|
Income Tax Allowances |
2009/10 |
2010/11 |
2011/12 |
|
Personal Allowance |
6475 |
6475 |
7,475 |
|
Income limit for Personal Allowance (see note 1) |
NA |
100,000 |
100,000 |
|
Age Allowance 64-74 |
9490 |
9490 |
9940 |
|
Age Allowance 75 and over |
9640 |
9640 |
10090 |
|
Married Couples Allowance, born before 6th April 1935 and age over 75. (see note 2) |
6965 |
6965 |
7295 |
|
Age allowance income limit |
22900 |
22900 |
24000 |
|
Minimum Married Couples Allowance (see note 3) |
2670 |
2670 |
2800 |
|
Blind Persons Allowance |
1890 |
1890 |
1980 |
|
|
|
|
|
- From 6th April 2010 Personal Allowance is reduced by £1 for every £2 over £100,000 of income.
- Age Allowance is reduced by £1 for every £2 over the ‘age allowance income limit’ however it will not be reduced below the standard Personal Allowance unless your income exceeds £100,000.
- Married couples allowance is only available to those born before the 6th April 1935, the allowance is given at 10%
Income Tax Rates
|
Rate |
2009/10 |
2010/11 |
2011/12 |
|
Savings starting rate at 10% |
£0-2440 |
£0-2440 |
£2-2560 |
|
Basic rate at 20% |
£0-37400 |
£0-£37400 |
£0-£35000 |
|
Higher rate at 40% |
£37400 + |
£37401-£150000 |
£35001 - £150000 |
|
Additional rate at 50% |
NA |
£150000 + |
£150000 + |
|
Dividend Basic rate |
10% |
10% |
10% |
|
Dividend Higher rate |
32.5% |
32.5% |
32.5% |
|
Dividend Additional rate |
NA |
42.5% |
42.5% |
National Insurance Contributions
|
Weekly |
2009/10 |
2010/11 |
2011/21 |
|
Primary Class 1 Lower earnings limit |
95 |
97 |
102 |
|
Primary Class 1 Upper earnings limit |
844 |
844 |
817 |
|
Upper accrual point |
770 |
770 |
770 |
|
Primary threshold |
110 |
110 |
139 |
|
Secondary Threshold |
110 |
110 |
136 |
|
Employees Class 1 rate from primary threshold to upper earnings limit |
11% |
11% |
12% |
|
Employees Class 1 rate over upper earnings limit |
1% |
1% |
2% |
|
Class 1A rate on employer benefits |
12.8% |
12.8% |
13.8% |
|
Contracted out rebate for employees |
1.6% |
1.6% |
1.6% |
|
Married women’s reduced rate from primary threshold to upper earnings limit |
4.85% |
4.85% |
5.85% |
|
Married women’s rate above upper earnings limit |
1% |
1% |
2% |
|
Employers secondary Class 1 above secondary threshold |
12.8% |
12.8% |
13.8% |
|
Employers contracted out rebate on salary schemes |
3.7% |
3.7% |
3.7% |
|
Employers contract out rebate on money purchase schemes |
1.4% |
1.4% |
1.4% |
|
Class 2 |
2.40 |
2.40 |
2.50 |
|
Class 2 small earnings exception |
5075 |
5075 |
5315 |
|
Class 3 |
12.05 |
12.05 |
12.60 |
|
Class 4 |
8% |
8% |
9% |
|
Class 4 lower profit limit |
5715 |
5715 |
7225 |
|
Class 4 upper profit limit |
43875 |
43875 |
42475 |
|
Class 4 above upper profit limit |
1% |
1% |
2% |
With the deadline for submission of 2011 Tax Returns soon approaching, we thought it would be helpful to advise of the potential issues you may come up against if you do not submit your Return on time
Since April of this year, all VAT-registered contractor businesses with a turnover of £100,000, along with all new registrants of the tax, have been required to file VAT returns and make VAT payments online.