No 10% tax rate? Have I missed something??

billymadbiker

Hi,
Just logged back onto the self-assment section of hmrc (I am self-employed) to see just how much I owe them for 10-11.

It's more than what I had worked it out at myself.
On looking at the caculation I see I have a single personal allowance (£6495 I think) but no 10% rate after that.
Everything over my personal allowance has been taxed at 20% plus NIC's at 8%.
That looks to me like I am paying 28% on most of my 'business profit'?

No big deal if it's changed, I don't watch the news much! just the bill was a bit bigger than i had thought it would be!

CLAPTON

tax allowance was 6475 for tax year 2010-11 and then 20% for the next 37,400

and NI class 4 was 8%

xylophone

http://www.hmrc.gov.uk/rates/it.htm
http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm

PlutoinCapricorn

This rate was abolished for 2008-09, in a very messy way.

Working it out yourself in advance is a very good idea - I do it myself - but it is best to get the allowances, rates, bands and percentages at the start of each tax year as these change frequently.

PlutoinCapricorn

This rate was abolished for 2008-09, in a very messy way (apart from a certain amount of bank interest)

Working it out yourself in advance is a very good idea - I do it myself - but it is best to get the allowances, rates, bands and percentages at the start of each tax year as these change frequently.