The current VAT rate is 20%. If you are VAT registered you should be charging this on all your sales unless your business is permitted to charge a reduced rate.
If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £77,000, or you expect it to go over that figure in the next 30 days alone you must apply to be VAT registered.
If your VAT taxable turnover is less than £150,000 you are able to register for the Flat Rate VAT Scheme.
The personal allowance threshold is £7,475 per year, as of 6 April 2011. This is the equivalent of £623 per month or £144 per week. This is the amount an individual can earn each year tax free.
A basic tax rate is then charged at 20% on annual earnings above the threshold and up to £35,000.
A higher tax rate is then charged at 40% on annual earnings from £35,001 to £150,000.
An additional tax rate is then charged at 50% on annual earnings above £150,000.
Corporation tax charged on company’s profits not exceeding £300,000 is charged at 20%, as from the 6 April 2011.
The National Minimum Wage rates
- £5.93 – the main rate for workers aged 21 and over
- £4.92 – the 18-20 rate
- £3.64 – the 16-17 rate for workers above school leaving age but under 18
- £2.50 – the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
Rates from 1 October 2011:
- the main rate for workers aged 21 and over will increase to £6.08
- the 18-20 rate will increase to £4.98
- the 16-17 rate for workers above school leaving age but under 18 will increase to £3.68
- the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship will increase to £2.60