Tax Rates and Allowances 2010-11

Income tax allowances

£ per year (unless stated)

2009-10

Change

2010-11

Income tax personal and age-related allowances

Personal allowance (age under 65)

£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

Married couple's allowance* - minimum amount

£2,670

-

£2,670

Income limit for age-related allowances

£22,900

-

£22,900

Blind person’s allowance

£1,890

-

£1,890

*Married couple's allowance is given at the rate of 10 per cent

Income tax: taxable bands

2009-10

£ per year

2010-11

£ per year

Starting savings rate: 10%*

£0-£2,440

Starting savings rate: 10%*

£0-£2,440

Basic rate: 20%

£0-£37,400

Basic rate: 20%

£0-£37,400

Higher rate: 40%

Over £37,400

Higher rate: 40%

£37,401-£150,000

Additional rate: 50%

Over £150,000

* There is a 10p starting rate for savings only. If an individual’s non-savings taxable income exceeds the starting rate limit, the 10p starting rate for savings will not be available for savings income.

Inheritance tax

£ per year (unless stated)

2009-10

Change

2010-11

Individual inheritance tax allowance

£325,000

-

£325,000

Corporation tax on profits

£ per year (unless stated)

2009-2010

2010-2011

£0-£300,000

21%

21%*

£300,001 - £1,500,000

Marginal Relief

Marginal Relief

£1,500,001 or more

28 %

28 %

* The planned small companies’ rate increase to 22% is deferred until 2011-12.

National insurance contributions

£ per week (unless stated)

2009-10

Change

2010-11

Lower earnings limit, primary Class 1

£95

£2

£97

Upper earnings limit, primary Class 1

£844

-

£844

Upper Accruals Point

£770

-

£770

Primary threshold

£110

-

£110

Secondary threshold

£110

-

£110

Employees’ primary Class 1 rate between primary threshold and upper earnings limit

11%

-

11%

Employees’ primary Class 1 rate above upper earnings limit

1%

-

1%

Employees’ contracted-out rebate - salary-related schemes

1.6%

-

1.6%

Employees’ contracted-out rebate - money-purchase schemes

1.6%

-

1.6%

Married women’s reduced rate between primary threshold and upper earnings limit

4.85%

-

4.85%

Married women’s rate above upper earnings limit

1%

-

1%

Employers’ secondary Class 1 rate above secondary threshold

12.8%

-

12.8%

Employers’ contracted-out rebate, salary-related schemes

3.7%

-

3.7%

Employers’ contracted-out rebate, money-purchase schemes

1.4%

-

1.4%

Class 2 rate

£2.40

-

£2.40

Class 2 small earnings exception (per year)

£5,075

-

£5,075

Special Class 2 rate for share fishermen

£3.05

-

£3.05

Special Class 2 rate for volunteer development workers

£4.75

£0.10

£4.85

Class 3 rate (per week)

£12.05

-

£12.05

Class 4 lower profits limit (per year)

£5,715

-

£5,715

Class 4 upper profits limit (per year)

£43,875

-

£43,875

Class 4 rate between lower profits limit and upper profits limit

8%

-

8%

Class 4 rate above upper profits limit

1%

-

1%

Working and Child Tax Credits rates

£ per year (unless stated)

April 2009

Change

April 2010

Working Tax Credit

Basic element

£1,890

£30

£1,920

Couple and lone parent element

£1,860

£30

£1,890

30 hour element

£775

£15

£790

Disabled worker element

£2,530

£40

£2,570

Severe disability element

£1,075

£20

£1,095

50+ Return to work payment (16-29 hours)

£1,300

£20

£1,320

50+ Return to work payment (30+ hours)

£1,935

£30

£1,965

Childcare element of the Working Tax Credit

Maximum eligible cost for one child

£175 per week

-

£175 per week

Maximum eligible cost for two or more children

£300 per week

-

£300 per week

Percentage of eligible costs covered

80%

-

80%

Child Tax Credit

Family element

£545

-

£545

Family element, baby addition

£545

-

£545

Child element

£2,235

£65

£2,300

Disabled child element

£2,670

£45

£2,715

Severely disabled child element

£1,075

£20

£1,095

Income thresholds and withdrawal rates

First income threshold

£6,420

-

£6,420

First withdrawal rate

39%

-

39%

Second income threshold

£50,000

-

£50,000

Second withdrawal rate

6.67%

-

6.67%

First threshold for those entitled to Child Tax Credit only

£16,040

£150

£16,190

Income disregard

£25,000

-

£25,000

Child Benefit

£ per week

Jan 2009

Change

April 2010

Eldest/Only Child

£20

30p

£20.30

Other Children

£13.20

20p

£13.40

Guardian's Allowance

£ per week

April 2009

Change

April 2010

Guardian's Allowance

£14.10

20p

£14.30

Stamp taxes and duties

Transfers of land and buildings (consideration paid)

Rate

Residential in disadvantaged areas

Residential outside disadvantaged areas

Non-residential

Total value of consideration

Zero

£0 - £150,000

after 31 December 2009

(£0 - £175,000

until 31 December 2009)

£0 - £125,000

after 31 December 2009

(£0 - £175,000

until 31 December 2009)

£0 - £150,000

1%

Over £150,000 - £250,000

after 31 December 2009

(Over £175,000- £250,000 until 31 December 2009)

Over £125,000 - £250,000

after 31 December 2009

(Over £175,000- £250,000 until 31 December 2009)

Over £150,000 - £250,000

3%

Over £250,000 - £500,000

Over £250,000 - £500,000

Over £250,000 - £500,000

4%

Over £500,000

Over £500,000

Over £500,000

Bingo duty

Bingo duty will be reduced to 20% at Budget 2010.

Landline Duty

Landline Duty will be introduced at a rate of 50p per month for each line from 1 October 2010.

Vehicle excise duty

Motorbikes

Vehicle Excise Duty for Motorcycles: 2010-11 rates

VED band

Change from 2009-10 to 2010-11

2010-11 rate

Up to 150cc

-

£15

151-400cc

-

£33

401-600cc

+£2

£50

Over 600cc

+£4

£70

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