Rates and Allowances


Tax Rates 2011 - 2012


	2011-12	2010-11
Income Tax

Personal Allowances

Aged 65 and under	£7,475	£6,475
Maximum allowance if aged 65-74*	£9,940	£9,490
Maximum allowance if aged 75 and over*	£10,090	£9,640
Blind Person's Allowance	£1,980	£1,890

Personal allowances for 2010/11 are withdrawn at a rate of £1 for every
£2 by which total income exceeds £100,000, to nil for income £112,950+

Married Couples Allowances (at 10% relief)
if born before 6th April 1935

Aged 75 and over*	£7,295	£6,965

Income limit for age related allowances*	£24,000	£22,900

*Age allowances are reduced by £1 for
every £2 by which income exceeds the
above income limit until the age allowance
is reduced to the normal allowance

Income Tax Rates

General Income:
Starting rate	N/A	N/A

Basic rate	20%	20%
On taxable income between £0 to £35,000 ( £0 to £37,400 - 2010/11)

Higher rate	40%	40%
On taxable income between £35,001 to £150,000 (£37,401 to £150,000 - 2010/11)

Additional rate
On taxable income over £150,000	50%	50%

Savings Income:
Starting rate *	10%	10%
Basic rate	20%	20%
Higher rate	40%	40%
Additional rate	50%	50%

Dividend Income:
Starting rate	10%	10%
Lower rate	10%	10%
Higher rate	32.5%	32.5%
Additional rate	42.5%	42.5%

* 10% rate on savings income only available if taxable non savings income is less than £2,560 ( £2,440 - 2010/11)



National Insurance
	2011-12	2010-11
Class 1 - Employees
	per week	per week
LEL - Lower Earnings Limit (to build up benefit	£102	£97
entitlement)
UEL - Upper Earnings Limit	£817	£844
Primary threshold (employee)	£139	£110


Employee contributions	12%	11%
on earnings between (primary threshold	£139-£817	£110 - £844
and UEL)

Primary residual rate on earnings over UEL	2%	1%

Employees contracted out rebate	1.60%	1.6%
Married woman's reduced rate between	5.85%	4.85%
primary threshold and UEL
Married woman's rate above UEL	2%	1%

Class 1 - Employers

Secondary threshold (employer)	£136	£110

Employer contributions	13.8%	12.8%
on earnings above secondary threshold

Employers contracted out rebate (salary	3.7%	3.7%
related schemes)

Employers contracted out rebate (money	1.4%	1.4%
purchase schemes)

* Employer Class 1A NIC's at 13.8% (12.8% - 2010-11) are also
due on most benefits in kind

Class 2 - Self Employed

Flat rate per week	£2.50	£2.40
Small earnings exception (profits per annum)	£5,315	£5,075

Class 3 - Voluntary

Flat rate per week	£12.60	£12.05

Class 4 - Self Employed

Lower Profits Limit	£7,225	£5,715
Upper Profits Limit	£42,475	£43,875

Class 4 rate between LPL and UPL	9%	8%
Class 4 rate above UPL	2%	1%


Inheritance Tax
	2011-12	2010-11
The inheritance tax threshold is the amount
up to which an estate will have no inheritance
tax to pay
If the estate (including any assets held in trust
and gifts made within 7 years of death) is more
than the threshold, Inheritance Tax will be
due on the excess

Threshold	£325,000	£325,000
Tax rate	40%	40%


Taxable Employee Benefits

Car Benefit

Based on a % of the initial list price of the car including
accessories, delivery and VAT. The percentage on which
you are taxed is dependent on the car's CO2 emissions and whether
the car is petrol or diesel.

Approved CO2 emissions g/km	Petrol	Diesel

0-75	5%	8%
76 - 120	10%	13%
121 - 129	15%	18%
130+	+1% for each extra 5g/km
up to a maximum of	35%	35%

Car Fuel Benefit

The benefit is calculated by applying the same % rate used to calculate
the car benefit to a standard charge of £18,800 (£18,000 - 2010-11).
Maximum charge at 35% is £6,580

Company vans

Calculated on a taxable benefit of £3,000 plus
an additional £550 if fuel is provided for private use.


Tax Free Mileage Allowances
	First 10,000	Miles over 10,000
	business miles	in tax year
	in tax year

Cars and vans	40p	25p
Motorcycles	24p	24p
Bicycles	20p	20p

An additional tax free allowance of up to 5p per mile is payable for business passengers.


Stamp Duty Land Tax
	2011-12	2010-11
Payable on the purchase or transfer of land and property in the UK

Residential
£0 - £125,000	0%	0%
£125,001 to £250,000	1%	1%
£250,001 to £500,000	3%	3%
£500,001 to £1,000,000	4%	4%
Over £1,000,000	5%	4%

Commercial
£0 - £150,000	0%	0%
£150,001 to £250,000	1%	1%
£250,001 to £500,000	3%	3%
£500,000 +	4%	4%

* First time buyers can claim relief from SDLT on residential property up to
£250,000 between 25/03/10 and 25/03/12.

Capital Gains Tax
	2011-12	2010-11

Annual tax free threshold	£10,600	£10,100
Up to basic rate limit	18%	18%
Above basic rate limit	28%	28%/18%*

* For disposals after 23/06/10, gains are added to income and taxed
at 18% (basic rate band) and 28% (higher rate band)


Corporation Tax Rates
	2011-12	2010-11

Small Companies Rate	20%	21%
Small Companies Rate can be claimed by
qualifying companies with profits at a rate
not exceeding	£300,000	£300,000

Main Rate	26%	28%
on profits above	£1,500,000	£1,500,000

Standard Fraction (previously Marginal Small Company Relief fraction)	3/200	7/400
on profits between £300,000 and £1,500,000
Marginal rate % on profits between £300,000 and £1,500,000	27.50%	29.75%

Capital Allowances

Plant and Machinery

Main rate pool:
Expenditure up to £100,000 - First Year	100%	100%
Expenditure over £100,000	20%	20%
Subsequent years writing down allowance	20%	20%

Special rate pool (long life assets, integral plant in buildings):
Expenditure up to £100,000 - First Year	100%	100%
Expenditure over £100,000	10%	10%
Subsequent years writing down allowance	10%	10%

Energy saving plant and machinery	100%	100%

Motor cars:
New cars until 31st March 2013 with CO2 emissions <110gm/km	100%	100%
Cars with CO2 emission of <160gm/km (added to main pool)	20%	20%
Cars with CO2 emission of >160gm/km	10%	10%
Cars purchased prior to April 2009	20%	20%	(maximum £3,000)

Value Added Tax

Standard rate	20%	17.5%
Reduced rate (eg. Domestic fuel)	5%	5%

Registration level from 01/04/11 (based on previous 12 months turnover)	£73,000	£70,000
Deregistration level from 01/04/11	£71,000	£68,000

Flat rate scheme turnover limit	£150,000	£150,000

Cash and annual accounting schemes turnover limit	£1,350,000	£1,350,000

Tax Credits
	2011-12	2010-11
Working Tax Credit

For people who work at least 16 hour/week and who either have a
child, are disabled, or are over 50 and returning to work. Or if non of
these apply, are over 25 and working at least 30 hours/week

Basic Element	£1,920	£1,920

Couple and lone parent element	£1,950	£1,890
People working at least 30 hours/week element
(inc. couples with children working 30 hours jointly,
provided one works at least 16 hours)	£790	£790
Disabled worker element	£2,650	£2,570
Severe disability element	£1,130	£1,095
Over 50 returning to work from benefits
in last 3 months element
- working 16 hours + per week	£1,365	£1,320
- working 30 hours + per week	£2,030	£1,965

Childcare Element for people paying for childcare:

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
% of eligible costs covered	70%	80%


Child Tax Credit
For people who are responsible for a child aged
under 16, or under 20 and completing non-advanced
education or approved training

Family element	£545	£545
Additional element in year of baby's birth	n/a	£545

Child element for each child	£2,555	£2,300
Additional element for each disabled child	£2,800	£2,715
Additional element for each child with a	£1,130	£1,095
severe disability

Child Benefit

Eldest child per week	£20.30	£20.30
Each subsequent child per week	£13.40	£13.40

Newby Business Accounting

Accounting for Growth