2006/2007

RATES AND ALLOWANCES
2006-2007

Income Tax
Income
tax allowances		 2006-07
(£)
Personal
allowance		 5,035
Personal
allowance for people aged 65-74		 7,280
Personal
allowance for people aged 75 and over		 7,420
Income limit
for age-related allowances		 20,100
Married
couple’s allowance for people born before 6 April 1935		 6,065
Married
couple’s allowance – aged 75 or more		 6,135
Minimum
amount of married couple’s allowance		 2,350
Blind
person’s allowance		 1,660
Taxable
bands
Starting
rate 10%		 0
- 2,150
Basic rate
22%		 2,151 -
33,300
Higher rate
40%		 Over
33,300

National Insurance
Item  
Lower
Earnings Limit		 £84
per week
Upper
Earnings Limit		 £645
per week
Primary
Threshold		 £97
per week
Secondary
Threshold		 £97
per week
Employee’s
contributions		 11%
of £97.01 to £645 per week  1% above £645 per week
Employee’s
Contracted-out Rebate		 1.
6%
Married
Women Reduced Rate		 4.85%
of £97.01 to £645 per week  1% above £645 per week
Employer’s
Contribution Rates		 12.8%
on earnings above £97 per week
Employers’
contracted-out rebate, salary-related schemes		 3.50%
Employers’
contracted-out rebate, money-purchase schemes		 1.00%
Class 2
Self employed Contribution		 £2.10
Class 2
Small Earnings Exception		 £4,465
per year
Special
Class 2 rate for share fishermen		 £2.75
Special
Class 2 rate for volunteer development workers		 £4.20
Class 3
(voluntary) Contribution		 £7.55
Class 4
- Contribution Rate		 8%
of £5,035 to £33,540 per year 1% above £33,540 per year
Class 4
Contributions – Lower Profits Limit		 £5,035
per year
Class 4
Contributions – Upper Profits Limit		 £33,540
per year

Capital gains tax annual
exempt amount

Individuals
etc		 8,800
Other
trustees		 4,400

Inheritance tax
threshold

 285,000

Pension schemes earnings
cap

 105,600

Corporation Tax
Starting
rate 0%		 N/A
Marginal
relief		 N/A
Small
companies’ rate 19%		 0 – 300,000
Marginal
relief		 300,001 – 1,500,000
Main rate
30%		 1,500,001 or more

Approved Mileage Rates
Cars
and Vans – First 10000 business miles in the tax year		 40p
Cars and
Vans – Each mile over 10000 business miles in the tax year		 25p
Motorcycles
- First 10000 business miles in the tax year		 24p
Motorcycles
- Each mile over 10000 business miles in the tax year		 24p
Bicycles
- First 10000 business miles in the tax year		 20p
Bicycles -
Each mile over 10000 business miles in the tax year		  20p

Value Added Tax
Standard
rate		 17.50%
Annual
Registration limit		 £61,000
De-registration
limit		 £59,000

Key Assessment Dates
Second
2005/2006 payment on account for all taxpayers		 31 July 2006
Tax
return deadline if the Revenue is to calculate tax liability		 30 September 2006
Final
deadline for submitting tax returns, payment of balance of tax liability
for 2005/2006 and first payment on account for 2005/2006		 31 January
2007