The current tax rates and allowances for the 2011-12 tax year are as follows:

Corporation Tax

• The ‘small profits’ rate paid on profits up to £300,000 is 20%.
• Find out more in our Corporation Tax guide.

Value Added Tax

• The standard VAT rate is 20%.
• The percentage rate used by contractors on the Flat Rate VAT Scheme is 14.5% (or 13.5% for your first year on the scheme).
• The registration threshold for VAT is £73,000.
• Find out more in our VAT guide.

Income Tax

• The Personal Allowance is £7,475.
• The value of this allowance is eroded by £1 for each £2 above £100,000.

Income Tax- Bands

• 20% rate applies between £0 and £35,000.
• 40% rate applies between £35,001 and £150,000.
• 50% rate applies on income above £150,000.

National Insurance Contributions (NICs)

• The employers’ Class 1 NIC rate is 13.8% on earnings above £139/week.
• The employee’s NIC rate is 12% of earnings between £139 and £817/week, and 2% on earnings above £817/week.
• Find out more in our National Insurance guide.

Dividend Tax

The tax rates on dividends remains unchanged for the 2011/12 tax year:

• 10% for dividend income up to the £35,000 threshold.
• 32.5% for higher rate income between £35,001 and £150,000.
• 42.5% for additional rate income over £150,000
• Find out more in our Dividend Tax guide.

Tax Relief on Pensions

• The lifetime allowance is £1.8m (allowance will be cut to £1.5m in 2012/13).
• The annual allowance is £50,000.

Capital Gains Tax

• The CGT rate for individuals is 18% (basic rate), and 28% (higher rate).
• The Entrepreneurs’ Relief lifetime allowance limit is £10m.

Inheritance Tax (IHT)

• The IHT threshold is £325,000. Beyond this limit, you pay 40%.

Individual Savings Accounts (ISAs)

• The ISA limit is £10,680, £5,340 of which can be saved in cash.

Approved Mileage Allowance Payments (AMAPs)

• The standard rate is 45p for the first 10,000 miles, and 25p thereafter.