TAX RATES AND KEY DATES
Income Tax Rates
Tax Rates
| Tax Rates | 2008/09 | 2009/10 |
|---|---|---|
| Starting Rate Band | £2,320 | NIL |
| Tax Rate | 10%* | N/A |
| Basic Rate Band | £34,800 | £37,400 |
| Basic Rate | 20% | 20% |
| Savings Rate | *see below | 20% |
| Dividend Ordinary Rate | 10% | 10% |
| Higher Rate - taxable income over | £34,800 | £37400 |
| Higher Tax Rate | 40% | 40% |
| Dividend Upper Rate | 32.5% | 32.5% |
| * 10% starting rate for savings income up to £2,320. Not applicable if taxable non-savings income exceeds £2,320. |
Allowances That Reduce Taxable Income
| 08/09 | 09/10 | |||
|---|---|---|---|---|
| Personal Allowance (PA) | under 65 | 1 | £6,035 | £6,475 |
| 65 to 74 | 1,3 | £9,030 | £9,490 | |
| 75 and over | 1,3 | £9,180 | £9,180 | |
| Blind person's allowance | £1,800 | £1,890 |
NB The maximum age related personal allowances is restricted by an income limit that will reduce the allowance to the level of the standard allowance
SELF ASSESSMENT KEY DATES
31st January
Tax Return to be filed (internet) not paper deadline of which is previous October 31st.
Balancing Payment of income tax and payment of capital gains tax
First interim payment on account for the next year of assessment
February
Fixed Penalty notices issued. Daily penalty where notified for non filing of Tax returns
Note the £100 penalty is remitted to the Tax payer if the taxpayer has paid tax due by 31st January and not filed on or before 31 January
SEE Certificates of Tax Deposit below
February 28
Initial surcharge due of 5% of any I T and CGT due 31st January
JULY 31
2nd interim payment on account due
Further surcharge of 5% of any I T and CGT due 31st January
October 31
Last date for filing paper Tax Return
CERTIFICATES OF TAX DEPOSIT
The taxpayer can make a tax reserve over a chosen period in the form of certificates of tax deposit ,which do not admit to any liability but will be accepted as payment in advance thus avoiding penalties.
Interest is receivable on the certificates.
Details from HMRC Revenue Finance (CTD) Room B2 South Block, Barrington Road, Worthing,West sussex BN12 4XH
Tel 01903 509064 or 509066
| Construction Industry Scheme Deduction Rate: | ||||
| Standard (registered) | 20% | 20% | ||
| Higher (not registered) | 30% | 30% |