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Tax Numbers for 2011/12
Newsletter issue - January 2011.
Most of the tax rates and thresholds for 2011/12 were announced on 2 December 2010 as follows:
Personal Allowances
Under 65: £7,475
65-74: £9,940
75 and over: £10,090
Minimum marriage allowance*: £2,800
Maximum marriage allowance: £7,295
Blind person's allowance: £1,980
Income limit for under 65 personal allowance: £100,000
Income limit for allowances for those aged 65 or more: £24,000
* given at 10% rate and only where one partner was born before 6 April 1935.
Income Tax Rates
The tax rates for 2011/12 have been frozen at the 2010/11 levels but the threshold at which the 40% tax rate is applied is reduced to £35,000. This introduces a subtle tax increase as it pulls more people into the 40% tax bracket, and increases the amount of income subject to tax at 40%.
Savings rate* (10%): £0 - 2,560
Basic rate (20%): £0 - 35,000
Higher rate (40%): £35,001 to 150,000
Additional rate (50%): Over £150,000
* Only applies to savings income such as interest where earned income is covered by allowances or is also within this range.
NI
The rates and weekly thresholds for NI contributions will be:
Employer's class 1 above primary threshold (above £136): 13.8%
Employer's contracted out for money purchase schemes (from £136.01 to £770): 12.4%
Employer's contracted out for salary related schemes (from £139.01 to £770): 10.1%
Employees' contracted out for both schemes (from £139.01 to £770): 10.4%
Employee's class 1 not contracted out (from £139 to £817): 12%
Employee's additional class 1 (above £817): 2%
Self-employed class 4 (annual figures from £7,225 to £42,475): 9%
Self-employed class 4 additional rate (above £42,475 per year): 2%
Self-employed class 2: £2.50 per week
Voluntary contributions class 3: £12.60 per week
What our clients say about us...
"Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."
ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT
"I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."
Neil Price - Managing Director at Work Relief Charity Recruitment
"Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"
Lee Westrap MBCS - Director - Bulldog IT Services
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