2010/2011

RATES AND ALLOWANCES
2010-2011

Income Tax
Income
tax allowances		 2010-11
(£)
Personal
allowance		 6,475
Personal
allowance for people aged 65-74		 9,490
Personal
allowance for people aged 75 and over		 9,640
Income limit
for age-related allowances		 22,900
Married
couple’s allowance for people born before 6 April 1935		 6,865
Married
couple’s allowance – aged 75 or more		 6,965
Minimum
amount of married couple’s allowance		 2,670
Blind
person’s allowance		 1,890
Taxable
bands
Starting
rate 10%		 0
Basic rate
20%		 0 -
37,400
Higher rate
40%		 Over
37,400
Additional
Rate
50%		 Over £150,000

National Insurance
Item  
Lower
Earnings Limit		 £97
per week
Upper
Earnings Limit		 £844
per week
Primary
Threshold		 £110
per week
Secondary
Threshold		 £110
per week
Employee’s
contributions		 11%
of £110.01 to £770 per week  1% above £770 per week
Employee’s
Contracted-out Rebate		 1.
6%
Married
Women Reduced Rate		 4.85%
of £110.01 to £770 per week  1% above £770 per week
Employer’s
Contribution Rates		 12.8%
on earnings above £105 per week
Employers’
contracted-out rebate, salary-related schemes		 3.70%
Employers’
contracted-out rebate, money-purchase schemes		 1.40%
Class 2
Self employed Contribution		 £2.40
Class 2
Small Earnings Exception		 £5,075
per year
Special
Class 2 rate for share fishermen		 £3.05
Special
Class 2 rate for volunteer development workers		 £4.85
Class 3
(voluntary) Contribution		 £12.05
Class 4
- Contribution Rate		 8%
of £5,715 to £43,875 per year 1% above £43,875 per year
Class 4
Contributions – Lower Profits Limit		 £5,715
per year
Class 4
Contributions – Upper Profits Limit		 £43,875
per year

Capital gains tax annual
exempt amount

Individuals
etc		 10,100
Other
trustees		 5,050

Inheritance tax
threshold

 325,000

Pension schemes earnings
cap

 123,600

Corporation Tax
Starting
rate 0%		 N/A
Marginal
relief		 N/A
Small
companies’ rate 21%		 0 – 300,000
Marginal
relief		 300,001 – 1,500,000
Main rate
28%		 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
(From 4 January 2011)		 20%
Standard
rate
(From 1 January 2010)		 17.5%
Annual
Registration limit		 £70,000
De-registration
limit		 £68,000

Key Assessment Dates
Second
2009/2010 payment on account for all taxpayers		 31 July 2010
Tax
return deadline for paper returns		 31 October 2010
Final
deadline for submitting tax returns, payment of balance of tax liability
for 2009/2010 and first payment on account for 2010/2011		 31 January
2011