Price and Company
Accountants & Tax Advisers
Budget
Here are some facts. Details can be seen on HM Revenue & Customs web site www.hmrc.gov.uk/budget2010.
VAT registration threshold now £70,000
No IR35 relaxation
Flat-rate VAT scheme annual limit < £150,000. Worth considering for small businesses but beware of snags.
No major changes in Capital Gains Tax
No simplification of Taxation
Inheritance Tax threshold £325,000
Employers NIC rate remains at a maximum of 12.8% and employees a maximum of 11%. A total cost of 23.8%.
Corporation Tax - 21% for profits up to £300,000 - marginal band @ 29.75% between £300,000-£1,500,000.
Business
|
Savings starting rate limit* |
2,440 |
2,440 |
|
Tax rate* |
10% |
10% |
|
Basic rate band |
37,400 |
37,400 |
|
Basic rate |
20% |
20% |
|
Savings rate |
20% |
20% |
|
Dividend ordinary rate |
10% |
10% |
|
Higher rate excluding dividends (up to £150,000) |
40% |
40% |
|
Dividend higher rate (up to £150,000) |
32.50% |
32.50% |
|
Additional rate excluding dividends ( >£150,000) |
50% |
50% |
|
Dividend additional rate (>£150,000) |
32.50% |
32.50% |
Personal allowances (ages as at the end of the tax year)
Personal allowance
Age allowance (65 to 74) -personal allowance*
Age allowance (75 or over) -personal allowance*
Income limit for age allowance*
Rent a Room exemption
2009/2010
£
9,640
6,475
9,490
22,900
2010/2011
£
9,640
22,900
9,490
4,250
6,475
*Higher allowances for those aged 65 or more are scaled back when income exceeds the income age limit
4,250
Personal tax rates
* Only available for savings income where non-savings income does not fully occupy the starting rate band.