Income Tax allowances table
| Income Tax allowances | 2009-10 | 2010-11 | 2011-12 |
|---|---|---|---|
| Personal Allowance (1) | £6,475 | £6,475 | £7,475 |
| Income limit for Personal Allowance | Not applicable | £100,000 | £100,000 |
| Personal Allowance for people aged 65-74 (1)(2) | £9,490 | £9,490 | £9,940 |
| Personal Allowance for people aged 75 and over (1)(2) | £9,640 | £9,640 | £10,090 |
| Married Couple’s Allowance (born before 6th April 1935 but aged under 75) (2)(3)(4) | Not applicable | Not applicable | Not applicable |
| Married Couple’s Allowance (born before 6th April 1935 and aged 75 and over) (2) (3) | £6,965 | £6,965 | £7,295 |
| Income limit for age-related allowances | £22,900 | £22,900 | £24,000 |
| Minimum amount of Married Couple’s Allowance | £2,670 | £2,670 | £2,800 |
| Blind Person’s Allowance | £1,890 | £1,890 | £1,980 |
- From the 2010-11 tax year the Personal Allowance reduces where the income is above £100, 000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
- These allowances reduce where the income is above the income limit for age-related allowances by £1 for every £2 of income above the limit. For the 2009-10 they will never be less than the basic Personal Allowance or minimum amount of Married Couple’s Allowance. However, from the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000.
- Tax relief for the Married Couple’s Allowance is given at the rate of 10 per cent.
- In the 2009-10 tax year all Married Couple’s Allowance claimants in this category became 75 at some point during the year and therefore entitled to the higher amount of the allowance – for those aged 75 and over.
Income Tax rates and taxable bands
| Rate | 2009-10 | 2010-11 | 2011-12 |
|---|---|---|---|
| Starting rate for savings: 10%* | £0-£2,440 | £0-£2,440 | £0- £2,560 |
| Basic rate: 20% | £0-£37,400 | £0-£37,400 | £0- £35,000 |
| Higher rate: 40% | Over £37,400 | £37,401-£150,000 | £35,001-£150,000 |
| Additional rate: 50% | Not applicable | Over £150,000 | Over £150,000 |
* From 2008-09 there is a 10 per cent starting rate for savings income only. If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply.
The rates available for dividends for the 2009-10 tax year are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate. From the 2010-11 tax year, as well as these rates there is a new dividend additional rate of 42.5 per cent.
National Insurance contributions – rates and allowances
| £ per week | 2009-10 | 2010-11 | 2011-12 |
|---|---|---|---|
| Lower earnings limit, primary Class 1 | £95 | £97 | £102 |
| Upper earnings limit, primary Class 1 | £844 | £844 | £817 |
| Upper accrual point | £770 | £770 | £770 |
| Primary threshold | £110 | £110 | £139 |
| Secondary threshold | £110 | £110 | £136 |
| Employees’ primary Class 1 rate between primary threshold and upper earnings limit | 11% | 11% | 12% |
| Employees’ primary Class 1 rate above upper earnings limit | 1% | 1% | 2% |
| Class 1A rate on employer provided benefits (1) | 12.8% | 12.8% | 13.8% |
| Employees’ contracted-out rebate | 1.6% | 1.6% | 1.6% |
| Married women’s reduced rate between primary threshold and upper earnings limit | 4.85% | 4.85% | 5.85% |
| Married women’s rate above upper earnings limit | 1% | 1% | 2% |
| Employers’ secondary Class 1 rate above secondary threshold | 12.8% | 12.8% | 13.8% |
| Employers’ contracted-out rebate, salary-related schemes | 3.7% | 3.7%% | 3.7% |
| Employers’ contracted-out rebate, money-purchase schemes | 1.4% | 1.4% | 1.4% |
| Class 2 rate | £2.40 | £2.40 | £2.50 |
| Class 2 small earnings exception | £5,075 per year | £5,075 per year | £5,315 per year |
| Special Class 2 rate for share fishermen | £3.05 | £3.05 | £3.15 |
| Special Class 2 rate for volunteer development workers | £4.75 | £4.85 | £5.10 |
| Class 3 rate | £12.05 | £12.05 | £12.60 |
| Class 4 lower profits limit | £5, 715 per year | £5, 715 per year | £7,225 per year |
| Class 4 upper profits limit | £43, 875 per year | £43, 875 per year | £42,475 per year |
| Class 4 rate between lower profits limit and upper profits limit | 8% | 8% | 9% |
| Class 4 rate above upper profits limit | 1% | 1% | 2% |
| Additional primary Class 1 percentage rate on deferred employments | 1% | 1% | 2% | Additional Class 4 percentage rate where deferment has been granted | 1% | 1% | 2% |
Class 1A NICs are payable in July and are calculated on the value of taxable benefits provided in the previous tax year, using the secondary Class 1 percentage rate appropriate to that tax year.
| Rate | 2010 | 2011 | 2012 |
|---|---|---|---|
| Small Profits Rate* | 21%* | 20%* | |
| Small Profits Rate can be claimed by qualifying companies with profits at a rate not exceeding | £300,000 | £300,000 | |
| Marginal Relief Lower Limit | £300,000 | £300,000 | |
| Marginal Relief Upper Limit | £1,500,000 | £1,500,000 | |
| Standard fraction | 7/400 | 3/200 | |
| Main rate of Corporation Tax* | 28%* | 26%* | 25%* |
| Special rate for unit trusts and open-ended investment companies | 20% | 20% |
*For companies with ring fence profits (income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf) these rates differ. The Small Profits Rate of tax on those profits is 19 per cent and the ring fence fraction is 11/400 for financial years starting 1 April 2009, 2010 and 2011. The main rate is 30 per cent for financial years starting on 1 April 2009, 2010 and 2011.
Information provided was correct at the time of going to publication. Always check the latest HM Revenue & Customs tax rates on http://www.hmrc.gov.uk/