UK Corporation and Income tax
Below are the both UK corporation tax and Income tax rates for 2004 - 2005 and 2005 - 2006. What is Corporation Tax?
Corporation Tax is a tax on your limited company's taxable income or profits over a twelve month accounting period. For Corporation Tax, your limited company must work out their own tax liability, pay their tax without prior assessment by the Inland Revenue
and deliver a return by the statutory filing date.
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TAX RATES |
2004 - 2005 |
2005 - 2006 |
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Income Tax |
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Personal Allowances |
£4,745 |
£4,895 |
Tax Free |
Starting Rate |
Up to £2,020 |
up to £2,090 |
10% |
Basic Rate |
Next £29,380 |
Next £30,310 |
22% |
Excess over |
£36,145 |
£37,295 |
40% |
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National Insurance |
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Class 1 (employees) |
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Up to |
£91 per week |
£94 per week |
0% |
Between |
£91.01 - £610 |
£95 - £630 |
11% |
Excess over |
£610 per week |
£631 per week |
1% |
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Class 2 (self employed) |
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£2 per week |
£2.10 per week |
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Class 4 (self employed) |
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Up to |
£4,745 |
£4,895 |
0% |
Between |
£4,745 - £31,720 |
£4,896 - £32,760 |
8% |
Excess over |
£31,720 |
£32.761 |
1% |
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Corporation Tax Rate |
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Starting rate |
£0 - £10,000 |
£0 - £10,000 |
0% |
Marginal relief |
£10,001 - £50,000 |
£10,001 - £50,000 |
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Small companies rate |
£50,001 - £300,000 |
£50,001 - £300,000 |
19% |
Marginal relief |
£300,001 - £1,500,000 |
£300,001 - £1,500,000 |
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Main rate |
£1,500,001 + |
£1,500,001 + |
30% |
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