View the latest TAX RATES following The Budget 2010, compiled by EfficientBooks Private Client Tax Team
CORPORATION TAX
to 31.3.11
to 31.3.10
Small companies rate (£0-£300,000)
21%*
21%
£300,001-£1,500,000
Marginal relief
Marginal relief
Full rate (£1,500,001+)
28%
28%
* The planned small companies’ rate increase to 22% is deferred until 2011-12.
VALUE ADDED TAX
Standard Rate
17.5%*
Registration level
from 1.4.10
£70,000
to 31.3.10
£68,000
De-registration limit
from 1.4.10
£68,000
to 31.3.10
£66,000
* From 1 January 2010.
INCOME TAX RATES
2010-2011
2009-2010
10% starting rate for savings*
£2,440
£2,440
20% on first/next
£37,400
£37,400
40% on income over
£37,400
£37,400
50% on income over
£150,000
n/a
Dividends for basic rate taxpayers
10%
10%
Dividends for income between £37,400 and £150,000
32.5%
32.5%
Dividends for income over £150,000
42.5%
32.5%
Trusts within relevant property regime**
50%
40%
Dividends for trusts within relevant property regime
42.5%
32.5%
* Restricted to savings income and not available if non-savings income exceeds starting rate limit.
**A standard rate band of £1,000 applies, below this level income will be taxed at no more than 20%.
MAIN INCOME TAX RELIEFS
2010-2011
2009-2010
Personal allowance (for income up to £100,000)*
£6,475
£6,475
Personal allowance (age 65-74)
£9,490
£9,490
Personal allowance (age 75 and over)
£9,640
£9,640
Married couple’s allowance (age 75 and over)**
£6,965
£6,965
Income limit for age-related allowances
£22,900
£22,900
Blind person’s allowance
£1,890
£1,890
Enterprise Investment Scheme at 20%***
£500,000
£500,000
Venture Capital Trust at 30%
£200,000
£200,000
Rent-a-room tax-free income
£4,250
£4,250
* From 2010-2011 the allowance reduces by £1 for every £2 of income above the limit, irrespective of age.
** Relief is restricted to 10%, subject to conditions.
*** Capital gains tax deferral relief also available.
Approved mileage allowance payments
2010-2011
2009-2010
Own cars and vans
Up to 10,000 miles (per mile)
40p
40p
Over 10,000 miles (per mile)
25p
25p
NATIONAL INSURANCE CONTRIBUTIONS
2010-2011
Earnings pw
2009-2010
Earnings pw
Employees Class 1 NIC
Earnings at or above lower limit
Standard rate
0% up to £110
0% up to £110
Contracted in
11%on £110.01-£844
11%on £110.01-£844
Contracted out
9.4%on £110.01-£770
9.4%on £110.01-£770
Contracted out
11%on £770.01-£844
11%on £770.01-£844
Contracted in and out
1% over £844
1% over £844
Employers Class 1NIC
Contracted in
Below £110
Nil
Nil
Over £110
12.8%
12.8%
Contracted out*
SR
MP
SR
MP
Below £110
Nil
Nil
Nil
Nil
£110.01 - £770
9.1%
11.4%
9.1%
11.4%
Over £770
12.8%
12.8%
12.8%
12.8%
Class 2 - Self-employed rate
£2.40 pw
£2.40 pw
Small earnings exception
£5,075 pa
£5,075 pa
Class 3 - Voluntary rate
£12.05 pw
£12.05 pw
Class 4 - Self-employed rate
8%
8%
Lower limit of earnings
£5,715 pa
£5,715 pa
Upper limit of earnings
£43,875 pa
£43,875 pa
1% on earnings over
£43,875 pa
£43,875 pa
* SR = Salary related scheme MP = Money purchase scheme
