Working and Child Tax Credits
Working tax credit 2011/2012 change 2010/2011
Basic element £ 1,920 - £ 1,920
Couple and lone parent £ 1,950 + £ 60 £ 1,890
element
Severe disability £ 1,130 - £ 2,535 £ 3,665
element
50+ return to work £ 2,030 + £ 65 £ 1,965
Payment ( 30+ hours)
Childcare element of the working tax credit
Maximum eligible cost £ 175 PW - £ 175 PW
for one child
Maximum eligible cost £ 300 PW - £ 300 PW
for two or more children
Child Tax Credit 2011/2012 change 2010/2011
Disabled child £ 2,800 + £ 85 £ 2,715
element
Income thresholds and withdrawal rates
First withdrawal rate 41% +2% 39%
(per cent)
National Insurance Contributions 2011/2012
Class 1-employed (contribution table letter A)
Lower earnings limit (LEL) -£ 102 per week
Earnings threshold (ET) - employers £136 per week
employees £139 per week
Upper earnings limit (UEL) - £817 per week-employees only
Upper accruals point (UAP) - £ 770 per week
Earnings Employees Earnings Employees
Employee Employer
Below £442 monthly Below £442 monthly Nil Nil
or or
Below £5,304 yearly Below £5,304 yearly
£442 to £602 monthly £442 to £589 monthly 0% 0%
or or
£5,304 to £7,225 yearly £5,304 to £7,072 yearly
£7,225.01 to £40,040 £7,072 to £40,040
yearly yearly
*on earnings above ET
£770.01 to £817 £770.01 to £817
weekly weekly
or or
£3,337.01 to £3,540 £3,337.01 to £3,540
monthly monthly 12%* 13.8%*
or or
£40,040.01 to £42,475 £40,040.01 to £42,475
yearly yearly
*on earnings above ET
Over £817 over £817
weekly weekly
or or
Over £3,540 over £3,540
monthly monthly 12%* 13.8%**
or or
Over £42,475 over £42,475
yearly yearly
*on earnings above the ET, up to an including the UEL, then 2% on all earnings above the UEL
**on all earnings above ET
Contracted out rates: Reduced rates and rebates apply to earnings between the lower earnings limit and the upper earnings limit.
CLASS 1A (EMPLOYERS ONLY): 13.8% based on taxable benefits
CLASS 1B (EMPLOYERS ONLY): 13.8% in respect of amounts in PAYE settlement agreements.
CLASS 2-SELF EMPLOYED FLAT RATE: £ 2.50 per week if earnings are over £ 5,315 pa.
CLASS 3-VOLUNTARY: £ 12.60 per week.
CLASS 4-SELF EMPLOYED RATE: 9% on profits between £ 7,225 and £ 42,475 pa. 2% above £ 42,475.
Child Benefit
From From
06/04/2011 06/04/2010
Eldest
child £20.30 £20.00
Capital Gains Tax
Rates
Companies: Gains charged to corporation tax rate.
Individuals: Gains above the annual exempt amount charged at 18%.
With effect of the 23/06/2010 gains in excess of basic rate tax band will be charged at 28%.
The entrepreneurs relief (lifetime limit of gains) 2011/2012 of £10 million (06/04/2010 to 22/06/2010 £2 million, 23/06/2010 to 05/04/2011 £5 million) on lifetime gains will reduce the effective tax rate to 10%.
Annual exemption
