free resources > rates & allowances

 


If you operate as a sole trader you will pay income tax on the whole of your profits (not on the sum you draw from your business).

If you operate as a partnership the amount of income tax charged on your profits is dependant on the individual income tax rates paid by the individual partners.

If you are an employee, you will pay income tax on your salary.

 


2010/11

2009/10
Band £ Rate % Band £ Rate %
0 - 2,440 10* 0 - 2,440 10*
2,441 - 37,400 20** 2,441 - 37,400 20**
37,401 - 150,000 40*** Over 37,400 40***
Over 150,000 50****    

*Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,440.

** Except dividends (10%).

*** Except dividends (32.5%).

**** Except dividends (42.5%).Other income taxed first, then savings income and finally dividends.