Tax and NI

15. The 2010/11 Tax Year

The information in sections 1-14 above applies to the current tax year. The rates and thresholds for the previous year (2010/11) are outlined below.

15.1 Income tax (see 4). The two income tax bands and rates for the tax year to 5 April 2011 were:

15.2 .2 Corporation tax bands (see 5). In 2010/11 they were:

15.3 Allowances (see 4).

• The personal allowance was £6,475.

15.4 National Insurance (see 10).

• Employees earning less than £110 a week were exempt. Other employees paid 11 per cent (9.4 per cent if contracted-out) on any extra, up to £844 a week.
• The employer's contribution was 12.8 per cent on earnings above £110 a week (less if contracted out).
• The self-employed paid £2.40 a week in Class 2 contributions.
• Class 4 contributions were charged at 8 per cent on profits between £5,715 and £43,875.
• The earnings limit for exemption from Class 2 contributions was £5,075.

15.5 Capital gains tax (see 12).

• The annual individual exemption was £10,100.

15.6 VAT (see 11).

• A new business had to register for VAT if it made VATable supplies of more than £73,000 in any 12-month period.