Tax Rebates & Refunds

Tax Guide for 2010/2011

March 10, 2010
Posted in Income Tax — Written by The Tax Repayment Agency

With the end of the 2009/2010 tax year and the start of the 2010/2011 tax year looking, it’s a good idea to make sure you’re up to speed on what changes will come into effect that could affect you. Here’s our quickfire guide to the upcoming tax changes.

April 2010

Tax

All personal tax bands and tax-free allowances will be frozen for 2010.

For people earning £150,000 a year or more there will be a new 50p income tax rate.

Anyone earning more than £100,000 a year will lose their personal allowance at the rate of £1 for every £2 earned. Therefore, if you earn more than £112,950 you will lose your tax free allowance completely.

ISAs

The amount you can put into an Individual Savings Account (ISA) in a given tax year will rise from £7,200 to £10,200. The limit on cash ISAs will be raised from £3,600 to £5,100.

April 2011

Pensions

Those earning over £150,000 a year and paying into a company pension will see their contributions taxed from April 2011.

National Insurance

The amount of National Insurance you pay will increase by 1% from April 2011.

Anyone earning up to £43,875 will see their contribution rise from 11% to 12%. The rate of additional National Insurance those earning over £43,875 will be charged will double from 1% to 2%.

Tax Rebates

Remember, if you think you may have paid more income tax than you should have at any point in the last six years, you could qualify for a tax refund.

It costs nothing to find out. Download a claim form here or contact us and we’ll send one out to you.

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