|
PAYLINE |
 |
| Some tax information that may be of interest to employers: | |
| INCOME TAX |
2010/11
|
2011/12
|
Basic rate band - income up to
Starting rate for savings Basic rate Dividend ordinary rate Higher rate - income over Higher tax rate Dividend upper rate Additional rate - income over Additional rate Dividend additional rate |
£37,00 *10% 20% 10% £37,400 40% 32.5% £150,000 50% 42.5% |
£35,000
*10% 20% 10% £35,000 40% 32.5% £150,00 50% 42.5% |
| * starting rate is for savings income up to the starting rate limit of £2,560 (£2,440) within the basic rate band. The rate applies to any balance of the limit remaining after allocating taxable non-savings income. | ||
|
Personal Allowance (PA) - under 65
65 to 74 75 and over |
*£6,475 *£9,490 *£9,640 |
*£7,475
*£9,940 *£10,000 |
|
Married couple's allowance (MCA)
either partner born before 6 April 1935 (relief restricted to 10%) |
*£6,965 |
*£7,2955 |
| Ages are as end of the tax year. * Age-related allowances are reduced by *£1 for every *£2 that adjusted net income exceeds *£24,000 (£22,900) to a minimum PA of *£7,475 (£6,475) and to a minimum MCA of *£2800 (*£2670). For 2010-11, where adjusted net income exceeds £100,000, PA is reduced in the same way until it becomes nil. | ||
| Tax Shelters | ||
Enterprise Investment
Scheme (EIS) up to |
£500,000
|
£500,000
|
Venture Capital Trust
(VCT) up to |
£200,000
|
£200,000
|
|
'Rent a Room' exempt
on gross annual rent
|
£4,250
|
£4,250
|
|
Construction Industry Scheme
deduction rate
|
20/30%
|
20/30%
|
|
Isas:-Overall investment limit |
£10,200 |
£10,680 |
Including cash maximum of |
£5,100 |
£5,340 |
|
PENSIONS |
||
|
Pensions: There is no financial limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual's UK relevant earnings or £3,600 |
||
|
If If total pension
input exceeds the annual
allowance of £50,000 there may
be tax charge on the excess. |
||
Maximum age for tax relief |
74 |
|
Minimum age for taking benefits |
55
|
|
Life time allowance charge |
-Lump sum paid |
55% |
-Monies retained |
25% |
|
|
on cumulative benefits exceeding |
£1,800,000
|
|
|
Maximum tax-free lump sum |
25%* |
|
| *Subject to transitional protection for excess ammount | ||