Tax rates and allowances
Here you will find this year's and last year's tax allowances. Please contact us to make sure that you have got the correct information.
| 2009/10 | 2008/09 | ||
| Income Tax | |||
| Personal Allowance | Under 65 | £6,475 | £6,035 |
| 65 to 74 | £9,490 | £9,030 | |
| 75 and over | £9,640 | £9,180 | |
| Blind person's allowance | £1,890 | £1,800 | |
| Tax Rates | |||
| Savings starting rate band to | £2,440 | £2,320 | |
| Savings starting tax band rate | 10% | 10% | |
| Basic rate band | £37,400 | £34,800 | |
| Basic tax rate | 20% | 20% | |
| Tax on UK Dividends within starting (2008/2009) and basic rate bands | 10% | 10% | |
| Higher rate - taxable income over | £37,400 | £34,800 | |
| Higher tax rate | 40% | 40% | |
| UK Dividend rate | 32.5% | 32.5% |
| Corporation Tax | ||
| Corporation tax rates and bands are as follows: | ||
| Financial Year to | 31 March 2009 | 31 March 2008 |
| Taxable Profits | ||
| First £300,000 | 21% | 21% |
| Next £1,200,000 | 29.75% | 29.75% |
| On profits over £1,500,000 | 28% | 28% |
| Tax credits on Dividends | 10% | 10% |
| Marginal relief fraction | 7/400 | 7/400 |
| Corporation Tax Payable | ||
| For small and medium sized companies | ||
| - Nine months and 1 day after the end of the accounting period | ||
| Mileage Allowances | ||
| For employees using their own transport | ||
| The approves maximum tax and national insurance free mileage allowances for employees using their own transport for business are as follows: | ||
| Flat Rate | First 10,000 Miles | Miles over 10,000 |
| Car | 40p | 25p |
| Motorcycle | 24p | 24p |
| Bicycle | 20p | 20p |
| Income Tax and NICs are due when allowances exceed these rates. Employees can claim tax relief on any shortfall. | ||
| Rates of up to 5p per mile, per passenger, are also tax and NIC free when paid for the carriage of fellow employees on the same business trip. | ||
| Value Added Tax | |||
| From | 1 April 2009 | 1 Dec 2008 | 1 April 2008 |
| Standard Rate | 15% | 15% | 17.5% |
| Standard rate VAT fraction | 3/23 | 3/23 | 7/47 |
| Reduced rate | 5% | 5% | 5% |
| Reduced rate VAT fraction | 1/21 | 1/21 | 1/21 |
| Taxable Turnover Limits | |||
| Registration - last 12 months or next 30 days over | £68,000 | £67,000 | £67,000 |
| Deregistration - next 12 months under | £66,000 | £65,000 | £65,000 |
| Cash accounting scheme - up to | £1,350,000 | £1,350,000 | £1,350,000 |
| Optional flat rate scheme - up to | £150,000 | £150,000 | £150,000 |
| Annual accounting scheme - up to | £1,350,000 | £1,350,000 | £1,350,000 |