Income tax allowances | 2003-04 (£) | Item National Insurance Contributions | 2003-04 |
Personal allowance | 4 615 | Lower earnings limit, primary class 1 | £77 per week |
Personal allowance for people aged 65-74 | 6 610 | Upper earnings limit, primary class 1 | £595 per week |
Personal allowance for people aged 75 and over | 6 720 | Primary threshold | £89 per week |
Income limit for age-related allowances | 18 300 | Secondary threshold | £89 per week |
Married couple’s allowance for people born before 6 April 1935 | 5 565 | Employees’ primary class 1 rate | 11% of £89.01 to £595 per week
1% Above £595 per week |
Married couple’s allowance - aged 75 or more | 5 635 | Employees’ contracted-out rebate | 1. 6% |
Minimum amount of married couple’s allowance | 2 150 | Married women’s reduced rate | 4.85%
1% Above £595 per week |
Children’s tax credit | 5 290 | Employers’ secondary Class 1 rate | 12.8% on earnings above £89 per week |
Children's tax credit - baby rate | 10 490 | Employers’ contracted-out rebate, salary-related schemes | 3.5% |
Blind person’s allowance | 1 480 | Employers’ contracted-out rebate, money-purchase schemes | 1.0% |
The rate of relief for the continuing married couple’s allowance
and maintenance relief for people born before 6 April 1935,
and for the children’s tax credit, is 10%. | | Class 2 rate | £2.00 per week |
Taxable bands | 2003-04 (£) | Class 2 small earnings exception | £4,095 per year |
Starting rate 10% | 0 - 1 960 | Special Class 2 rate for share fishermen | £2.65 per week |
Basic rate 22% | 1,961 - 30,500 | Special Class 2 rate for volunteer development workers | £3.75 per week |
Higher rate 40% | Over 30 500 | Class 3 rate | £6.85 per week |
Trust | 2003-04 | Class 4 rate | 8% of £4,615 to £30,940 per year 1% above £30,940 per year |
Trusts | 34% | Class 4 lower profits limit | £4,615 per year |
Schedule F Trusts | 25% | Class 4 upper profits limit | £30,940 per year |
Financial year 2003-04 (£) |
Starting rate zero | 0 - 10 000 | The main rate of corporation tax for 2003-04 will be 30%. |
Marginal relief | 10 001 - 50 000 |
The corporation tax starting rate is reduced from 10 per cent to zero for companies with taxable profits below £10,000.
The small companies' rate is reduced from 20 to 19 per cent for companies with taxable profits between £50,000 and £300,000
|
Small companies’ rate 19% | 50 001 - 300 000 |
Marginal relief eases the transition from the starting rate to the small companies' rate for companies with profits between £10,000 and £50,000.
The fraction used in the calculation of this marginal relief will be 19/400.
Marginal relief also applies to companies with profits between £300,000 and £1,500,000.
|
Marginal relief | 300 001 - 1 500 000 |
The profits limits may be reduced for a company which is part of a group or has associated companies.
The lower rates and marginal reliefs do not apply to close investment holding companies.
|
Main rate 30% | 1 500 001 or more | |
For the Taxation Year 2003-2004 the Chancellor has announced that Employer's NIC will rise by 1%
Employees National Insurance Contributions will also rise by 1% and that change will be without the upper ceiling.
This means 11% of £89.01 to £585 per week and then 1% from then onwards.
Below Are Some Of The Corporation Taxation Points For A Small Company 2003-2004