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Dental Accounts |
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| Some tax information that may be of interest to dental practitioners: | |
| INCOME TAX |
2010/11 |
2011/12 |
Basic rate band - income up to
Starting rate for savings Basic rate Dividend ordinary rate Higher rate - income over Higher rate Dividend upper rate Additional rate - Income over Additional rate Dividend additional rate |
£37,400
*10% 20% 10% £37,400 40% 32.5% £150.000 50% 42.5 |
£35,000
*10% 20% 10% £35,000 40% 32.5% £150,000 £50% £42.5 |
| * 10% starting rate only available for savings income up to £2,560. Not applicable if taxable non-savings income exceeds £2,560. | ||
| Allowances that Reduce Taxable Income | ||
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Personal Allowance - under 65
65 to 74 75 and over |
£6,475 £9,490 £9,640 |
£7,475 £9,940 £10,000 |
| Allowances that Reduce Tax | ||
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Married couple's allowance (MCA)
Either partner born before 6 April 1935 (relief restricted to 10%)
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£6,965 |
£7,295 |
| Ages are as end of the tax year *Age-related allowances are reduced by £1 for every £2 that adjusted net income exceeds £24,000 to a minimum PA of £7,475 and to MCA of £2,800. For 2011-12, where adjusted net income exceeds £100,000, PA is reduced in the same way until it becomes nil. |
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| NATIONAL INSURANCE CONTRIBUTIONS |
2011/12
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Class 1 (not contracted out) payable on weekly
earnings of
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Employer
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Employee
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Up to £102 (Lower earnings limit)
£102 to £136 (Employer's earnings threshhold) £136.01 - £139 (Eployee's earnings threshold) £139.01 - £770 (Upper accrual point) £770.01 - £817 (Upper earnings limit)
over £817 over state retirement age employee contribution is generall Nil |
Nil
Nil 13.8% 13.8% 13.8% 13.8% |
Nil
Nil Nil 12% 12% 2% |
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Class 1A On relevant benefits
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13.8%
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Nil
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Class 2 Self employed Limit of net earnings for exception |
£2.50 per week £5,315 per annum |
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Class 3 Voluntary |
£12.60 per week |
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Class 4* Self employed on profits £7,225 - £42,475 Excess over £42,475 *exemption applies if state retirement age was reached by 06/04/09 |
9% 2% |
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