Corporate Tax Rates
Corporation/Employers Tax Rates & Allowances 2011/12
Years to 31.3.12 |
Years to 31.3.11 |
|||
| Profits band £ |
Rate % |
Profits band £ |
Rate % |
|
| Small profits rate | 0 - 300,000 | 20* | 0 - 300,000 | 21* |
| Marginal (small profits) rate | 300,001 - 1,500,000 | 27.5* | 300,001 - 1,500,000 | 29.75* |
| Main rate | Over 1,500,000 | 26* | Over 1,500,000 | 28* |
| Standard fraction | 3/200* | 7/400* | ||
The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.
*Different rates apply for ring-fenced (broadly oil industry) profit.
Capital Allowances
Plant and machinery - Annual Investment Allowance (AIA)
The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long life assets but not cars, of up to £100,000 p.a. (£50,000 for expenditure incurred before 6 April 2010 (1 April 2010 for companies). Special rules apply for accounting periods straddling these dates.)
Any costs over the AIA fall into the normal capital allowance pools at either 10% or 20%. The AIA may need to be shared between certain businesses under common ownership.
Other plant and machinery allowances
The annual rate of allowance is 20%. A 10% rate applies to expenditure incurred on integral features and on long life assets.
A 100% first year allowance may be available on certain energy efficient plant and cars, including expenditure incurred on new and unused zero emission goods vehicles on or after 6 April 2010 (1 April 2010 for companies).
Cars
For expenditure incurred on cars on or after 6 April 2009 (1 April 2009 for companies), costs are generally allocated to one of the two plant and machinery pools. Cars with CO2 emissions not exceeding 160gm/km receive a 20% allowance p.a. Cars with CO2 emissions over 160gm/km receive a 10% allowance p.a.
Industrial and agricultural buildings and hotels
The annual rate of allowance is nil (1%) from 6 April 2011 (1 April 2011 for companies). Special rules apply for accounting periods straddling these dates.
Value Added Tax
| Standard rate | 20% |
| Reduced rate | 5% |
| Annual Registration Limit - from 1.4.11 (1.4.10 - 31.3.11 £70,000) | £73,000 |
| Annual Deregistration Limit - from 1.4.11 (1.4.10 - 31.3.11 £68,000) | £71,000 |
Car, Van and Fuel Benefits
Company cars 2011/12 |
|
| CO2 emissions (gm/km) (round down to nearest 5gm/km) | % of car’s list price taxed |
| up to 125 | 15 |
| 130 | 16 |
| 135 | 17 |
| 140 | 18 |
| 145 | 19 |
| 150 | 20 |
| 155 | 21 |
| 160 | 22 |
| 165 | 23 |
| 170 | 24 |
| 175 | 25 |
| 180 | 26 |
| 185 | 27 |
| 190 | 28 |
| 195 | 29 |
| 200 | 30 |
| 205 | 31 |
| 210 | 32 |
| 215 | 33 |
| 220 | 34 |
| 225 and above | 35 |
Company cars
- For diesel cars add a 3% supplement but maximum still 35%.
- A 0% rate applies to cars which cannot emit CO2 when driven.
- A 5% rate applies to non-electric cars with emissions which do not exceed 75gm/km.
- A 10% rate applies to non-electric cars with emissions which do not exceed 120gm/km.
- The diesel supplement can apply to 75 and 120gm/km cars.
- For cars registered before 1 January 1998 the charge is based on engine size.
- The list price includes accessories and is not subject to an upper limit.
- The list price is reduced for capital contributions made by the employee up to £5,000.
Car fuel benefit 2011/12
£18,800 x ‘appropriate percentage’*
*Percentage used to calculate the taxable benefit of the car for which the fuel is provided.
- The charge does not apply to certain environmentally friendly cars.
- The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.
Van benefit per vehicle 2011/12
Van benefit £3,000
Fuel benefit £550
- The charges do not apply to vans which cannot emit CO2 when driven or if a ‘restricted private use condition’ is met throughout the year.
Mileage Allowances
Cars and vans |
2011/12 |
| Up to 10,000 miles | 45p |
| Over 10,000 miles | 25p |
| Bicycles | 20p |
| Motorcycles | 24p |
These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.
National Insurance
2011/12 Class 1 (employed) contracted in rates |
|||
| Employee | Employer | ||
| Earnings per week | % | Earnings per week | % |
| Up to £139 | Nil* | Up to £136 | Nil |
| £139.01 - £817 | 12 | Over £136 | 13.8 |
| Over £817 | 2 | ||
| * Entitlement to contribution-based benefits retained for earnings between £102 and £139 per week. | |||
| Class 1A (employers) | 13.8% on employee taxable benefits |
| Class 1B (employers) | 13.8% on PAYE Settlement Agreements |
| Class 2 (self-employed) | flat rate per week £2.50 small earnings exception p.a. £5.315 p.a. |
| Class 3 (voluntary) | flat rate per week £12.60 |
| Class 4 (self-employed) | 9% on profits between £7,225 and £42,475 plus 2% on profits over £42,475 |
