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Tax and NI
17. The 2010/11 Tax Year
The information in the earlier part of this briefing applies to the current tax year. The main changes from the previous year are highlighted below.
17.1 The two income tax bands (see 3 and 4) and rates for the tax year to 5 April 2011 were:
taxable income (£)tax rate1-37,400 20%37,400-£150,0040%17.2 Corporation tax (see 5) bands for the tax year ending 31 March 2011 were:
profit (£)tax rate1-300,00021%300,000-1,500,00021-28%Over 1,500,00028%17.3 The personal allowance was £6,475.
17.4 National Insurance (see 13).
- Employees earning less than £110 a week were exempted. 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 rate was 12.8 per cent on earnings above £110 a week (less if contracted out).
- The self-employed paid Class 2 contributions of £2.40 a week.
- 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.
17.5 Capital gains tax (see 14).
- The annual exemption for individuals was £10,100.
Labels: Tax
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