Hate Paying Tax

Budget 2011 - Individuals

Posted by admin on 24 March 2011 | 0 Comments

With the budget over we can all breath a sigh of relief that nothing painful was announced. We are going to go over some of the key points affecting individuals. Tomorrow we will look at the bigger issue of businesses. Personal allowances for 2012/13 are going to £8105. The personal allowance is the amount you can earn before you starting paying tax. Rising to £7475 on April 6th, this will mean that it has gone up £1630 since the coalition came into power. This puts them well on their way to raising it to £10,000 before the end of their term. A review of tax & NIC has been called for with a view to simplify the system. Currently basic rate tax (what most people pay) is 20%, and 40% at the higher rate. On top of this national insurance is 11% up to £844 per week and 1% thereafter. Entrepreneur's relief has very generously been double to £10 million. This means that anyone selling an entrepreneurial business will be taxed at 10% on the first £10 million and the standard capital gains rate of 18% afterwards. This is a lifetime limit so don't get too excited and think you can start selling a business a year... Subscribe via RSS and keep up to date with our articles including the budget review for business tomorrow!