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17.02.2011 - Income Tax & National Insurance Rates for 2011 - 12

Posted by Ben Williams on Thu, Feb 17, 2011 @ 01:33 PM

Below, you will find all the rates and thresholds for Income Tax & National Insurance Rates for 2011 - 12, coming into effect on 6th April 2011.

Personal Allowances

Personal Allowance for under 65s £7475

Personal Allowance for 65-75 £9940

Personal Allowance for over 75s £10,090

Age related income allowance limit £24,000

Rates of Income Tax

Rate

2009-10

2010-11

2011-12

Starting rate for savings: 10%*

£0-£2,440

£0-£2,440

£0- £2,560

Basic rate: 20%

£0-£37,400

£0-£37,400

£0- £35,000

Higher rate: 40%

Over £37,400

£37,401-£150,000

£35,001-£150,000

Additional rate: 50%

Not applicable

Over £150,000

Over £150,000

* From 2008-09 there is a 10 per cent starting rate for savings income only. If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply.

The rates available for dividends for the 2009-10 tax year are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate. From the 2010-11 tax year, as well as these rates there is a new dividend additional rate of 42.5 per cent.

National Insurance Rates 2011 Contributions

 

Employer

Contributions

2011/12

Not

Contracted-out

Contracted-out Schemes

Salary Related

Money Purchase

Table Letters

A, B, C and J

D, E and L

F, G and S

Contributions on earnings up to LEL

NIL

NIL

NIL

Contributions on earnings between the LEL and ST

0%

0%, less 3.7% rebate

0%, less 1.4% rebate

Contributions on earnings between the ST and UAP

13.8%

10.1%, i.e. 13.8% less 3.7% rebate

12.4%, i.e. 13.8% less 1.4% rebate

Contributions on earnings between the UAP and UEL

13.8%

13.8%

13.8%

Contributions on earnings above UEL

13.8%

13.8%

13.8%

 

Employee

Contributions

2011/12

Not

Contracted-out

Contracted-out Schemes

Table Letters

A

B

J

D and F

E and G

L and S

Contributions on earnings up to LEL

NIL

NIL

NIL

NIL

NIL

NIL

Contributions on earnings between the LEL and PT

0%

0%

0%

0% less 1.6% rebate

0%

0% less 1.6% rebate

Contributions on earnings between the PT and UAP

12%

5.85%

2%

10.4%, i.e. 12% less 1.6% rebate

5.85%

2%, i.e. 3.6% less 1.6% rebate

Contributions on earnings between the UAP and UEL

12%

5.85%

2%

12%

5.85%

2%

Contributions on earnings above UEL

2%

2%

2%

2%

2%

2%

If you have any questions regarding this article, leave a comment!

Or, to understand how the lowering of the 40% tax threshold could affect you, click here to read our '40% Tax Threshold Due To Lower' blog post. OR, to find out exactly how all these changes will affect you, click here to Ask An Accountant!

To learn more about National Insurance rates 2011 & Income Tax common problems, click here to check out our Tax Helpsheets!

 

tax-rates-allowances-2012-2013-booklet

Topics: Income Tax, NI, NIC, National Insurance Rates 2012, Tax Rates, Tax Thresholds, Personal Allowance 2011, National Insurance Rates 2011, National Insurance Rates 2011/12