Rates and Allowances

Click to expand the section titles below for more information.

Corporation Tax

20010/11
2009/10
Profits Band
£
Rate
%
Profits Band
£
Rate
%
Small companies rate
0 - 300,000
21
0 - 300,000
21
Marginal (small companies) rate
300,001 - 1,500,000
29.75
300,001 - 1,500,000
29.75
Full rate
Over 1,500,000
28
Over 1,500,000
28
Small companies fraction
7/400
7/400

Income Tax Rates

2010/2011
2009/10
Band
£
Rate
%
Band
£
Rate
%
0 - 37,400 20 0 - 37,400
20
37,400 - 150,000
40
Over 37,400
40
Over 150,000
50
 

There will be a new 10% starting rate for savings income only, with a limit of £2,440.00

Dividends

2010/11

 

2009/10

Basic Rate Taxpayers

10%

 

10%

-

Higher Rate Taxpayers

32.5%

 

32.5%

-

Additional Rate Taxpayers

42.5%

 

 

 

Income Tax Reliefs

2010/11
£
2009/10
£
Personal allowance Basic
6,475
6,475
Age 65 - 74
9,490
9,490
Age 75 and over
9,640
9,640

Married couple's allowance

Age under 75
Age 75 and over
Age allowance income limit

N/A
6,965*
22,900

N/A
6,965*
22,900
 
Blind person's allowance
1,890
1,890

* Tax relief for the Married Couple’s Allowance is given at the rate of 10%

Vehicle Benefits

Company Cars

 

CO2 emissions in grams per kilometre

 

130

155

175

195

215

230

% of car’s list price taxed

15%

20%

24%

28%

32%

35%

For each 5 grams per kilometre, increase 1% up to maximum of 35%
For diesel cars add a 3% supplement but maximum still 35%
Euro IV diesel cars registered before 1st January 2006 do not suffer the 3% supplement.

Company Cars – Fuel

 

2010/11

2009/10

Company car percentage is multiplied by

£18,000

£16,900

The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Company Vans

  2010/11
2009/10

Restricted to commuting and occasional incidental use
Nil

Nil

Unrestricted use

£3000

£3,000

Provision of private fuel

£550

£500

Statutory Mileage Rates

 

Up to 10,000 miles

Over 10,000 miles

Cars and vans

40p

25p

Motorcycles

24p

24p

Bicycles

20p

20p

 

Value Added Tax (VAT)

  From 1st June 2010 From 1st Dec 2008
Standard Rate 17.5% 15%
Reduced Rate 5% 5%
VAT fraction 7/47 3/23
  From 1st April 2010  
Annual Registration Limit £70,000 £68,000
Annual Deregistration Limit £68,000 £66,000

Details of other rates and allowances are available
by contacting us on the number below.