Financial Planning

 

 

 

Useful Information

Corporation tax from 1 April ….. 2009 2010 2011
Main rate of corporation tax 28% 28% 26%
Small companies’ rate (SCR) 21% 21% 20%
SCR can be claimed by qualifying companies with profits at an annual rate not exceeding £300,000 £300,000 £300,000
Marginal small companies’ relief (MSCR) lower limit £300,000 £300,000 £300,000
MSCR upper limit £1,500,000 £1,500,000 £1,500,000
MSCR fraction 7/400 7/400 3/200
Income tax allowances 2009-10 (£) 2010-11 (£) 2011-12 (£)
Personal allowance 6,475 6,475 7,475
Personal allowance for people aged 65-74 9,490 9,490 9,940
Personal allowance for people aged 75 and over 9,640 9,640 10,090
Married couple’s allowance – aged 75 and over 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
Income tax rates and bands 2009-10 (£) 2010-11 (£) 2011-12 (£)
Starting rate 10% (for savings only) 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% N/A over 150,000 over 150,000
Capital Gains Tax 2009-10 (£) 2010-11 (£) 2011-12 (£)
Annual exempt amount – Individuals 10,100 10,100 10,600
Annual exempt amount – Other trustees 5,050 5,050 5,300
Rate of taxation – for basic rate taxpayers 18% 18% 18%
Rate of taxation – for higher rate taxpayers 28% 28% 28%
Inheritance Tax 2009-10 (£) 2010-11 (£) 2011-12 (£)
Exempt amount per individual 325,000 325,000 325,000
Rate of taxation 40% 40% 40%
Value Added Tax (VAT) 2009-10 (£) 2010-11 (£) 2011-12 (£)
Standard rate (15% rate applies from 1 December 2008 to 31 December 2009) 17½ / 15% 17½ % 20%
Reduced rate 5% 5% 5%
Annual registration limit 68,000 70,000 73,000
Annual deregistration limit 66,000 68,000 71,000
Capital Allowances 2009-10 (£) 2010-11 (£) 2011-12 (£)
Annual Investment Allowance (AIA) limit 50,000 100,000 100,000
The AIA enables businesses to claim the full cost of assets purchased within this limit 100% 100% 100%
NB Exclusions e.g. On expensive cars or assets with private use still apply
Any residual amounts or putchases in excess of the AIA still attract a WDA 20% 20% 20%
Agricultural Buildings Allowances and Industrial Buildings Allowances are being phased out,
of the original 4% annual allowance only the following may be claimed: 2% 1% 0%
National Insurance
Employees pay Class 1 NIC at 12%
Employers pay Class 1 NIC at 13.8%
Self employed people and people in partnerships pay Class 2 NIC (usually
paid monthly by Direct Debit) plus Class 4 NIC based on profits 2009-10 (£) 2010-11 (£) 2011-12 (£)
Lower earnings limit, primary Class 1 £95 p/w £97 p/w £102 p/w
Secondary threshold £110 p/w £110 p/w £136 p/w
Primary threshold £110 p/w £110 p/w £139 p/w
Upper accruals point £770 p/w £770 p/w £770 p/w
Upper earnings limit, primary Class 1 £844 p/w £844 p/w £817 p/w
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%
Employers’ secondary Class 1 rate above secondary threshold 12.80% 12.80% 13.80%
Class 2 rate £2.40 p/w £2.40 p/w £2.50 p/w
Class 2 small earnings exception £5,075 p/a £5,075 p/a £5,315 p/a
Class 3 rate £12.05 p/w £12.05 £12.05
Class 4 lower profits limit £5,715 p/a £5,715 p/a £7,225 p/a
Class 4 upper profits limit £43,875 p/a £43,875 p/a £42,475 p/a
Class 4 rate between lower profits limit and upper profits limit 8% 8% 9%
Class 4 rate above upper profits limit 1% 1% 2%
National Minimum Wage from 1 October… 2009 2010 2011
Under 18 but above compulsory school age £3.57 £3.64 £3.68
Aged 18 – 20 inclusive (18 – 21 in 2009) £4.83 £4.92 £4.98
Aged 21 or over (22 and over in 2009) £5.80 £5.93 £6.08