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Useful Information
Please note that all these rates are correct as of the date of our last update (19th December 2003)
but are subject to change, please contact us for the latest information.
Inland Revenue Tax bands and rates
Personal tax (back to top)
| Tax rates |
2004/05 |
2003/04 |
| Lower rate band to |
£2,020 |
£1,960 |
| Tax rate |
10% |
10% |
| Basic rate band - next |
£29,380 |
£28,540 |
| Normal rate |
22% |
22% |
| Savings income rate |
20% |
20% |
| Higher rate band - over |
£31,400 |
£30,500 |
| Tax rate |
40% |
40% |
| Allowances that Reduce Taxable Income |
2004/05 |
2003/04 |
| Personal Allowance - under 65 |
£4,745 |
£4,615 |
| Personal Allowance - 65 to 74 |
£6,830 |
£6,610 |
| Personal Allowance - 75 and over |
£6,950 |
£6,720 |
Corporation tax (back to top)
| Financial Year to Taxable Profits |
31 March 2005 |
31 March 2004 |
| First £10,000 |
0% |
0% |
| Next £40,000 |
23.75% |
23.75% |
| Next £250,000 |
19% |
19% |
| Next £1,200,000 |
32.75% |
32.75% |
| Over £1,500,000 |
30% |
30% |
National Insurance rates - 2004/2005 (back to top)
| Class 1 (not contracted out) |
Employer
% of all earnings |
Employee |
| Payable on earnings of |
|
|
| < £4,745 |
Nil |
Nil |
| £4,745-£31,720 |
12.8% |
11% |
| > £31,720 |
12.8% |
1% |
| Men 65 and over and women 60 and over |
as above |
Nil |
| Class 1A - On benefits |
12.8% |
Nil |
Class 2 - Self employed
Limit of net earnings for exception |
£2.05 per week
£4,215 p.a. |
|
| Class 3 - Voluntary |
£7.15 per week |
|
| Class 4 - Self employed on profits |
|
|
| £4,745 - £31,720 |
8% |
|
| Over £ 31,720 |
1% |
|
| Exemption applies if state retirement age is reached by 6 April 2003 |
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VAT (back to top)
Standard rate of VAT - 17.5% - VAT fraction 7/47
Vat registration limit - £ 58,000
Optional flat rate scheme - turnover up to £150,000
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