Salary Calculator Tax Year 2010/2011How will the new tax changes for the tax year 2010/2011 affect you? Enter your gross income into the calculator to find out. The calculator will work out how much tax, National Insurance and, if applicable, student loan you will pay and then show you your estimated net income. This calculator is based on the standard tax code 647L and standard National Insurance contributions for earnings for a whole tax year ending the month April. |
Income Tax personal and age-related allowances
All personal and age-related Income Tax allowances are to be frozen in 2010-11.
|
Allowances |
2009-10 |
Change |
2010-11 |
|---|---|---|---|
|
Personal allowance (age under 65) |
£6,475 |
- |
£6,475 |
|
Personal allowance (age 65-74) |
£9,490 |
- |
£9,490 |
|
Personal allowance (age 75 and over) |
£9,640 |
- |
£9,640 |
|
Married couple's allowance* (age 75 and over) |
£6,965 |
- |
£6,965 |
|
Married couple's allowance* - minimum amount |
£2,670 |
- |
£2,670 |
|
Income limit for age-related allowances |
£22,900 |
- |
£22,900 |
|
Blind person's allowance |
£1,890 |
- |
£1,890 |
* Married couple's allowance is given at the rate of 10 per cent.
Income Tax - taxable bands
|
2009-10 |
£ per year |
2010-11 |
£ per year |
|---|---|---|---|
|
Starting savings rate: 10%* |
£0-£2,440 |
Starting savings rate: 10%* |
£0-£2,440 |
|
Basic rate: 20% |
£0-£37,400 |
Basic rate: 20% |
£0-£37,400 |
| Higher rate: 40% |
Over £37,400 |
Higher rate: 40% |
£37,401-£150,000 |
|
|
|
Additional rate: 50% |
Over £150,000 |
*There is a 10p starting rate for savings income only. If an individual's non-savings taxable income exceeds the starting rate limit, the 10p starting rate for savings will not be available for savings income.
Higher rate of Income Tax to be frozen in 2012-13
The government has announced that the point at which individuals start to pay the higher rate of Income Tax (known as the higher rate threshold) will be frozen in 2012-13 at 2011-12 levels.
The upper earnings limit and the upper profits limit for National Insurance will continue to be aligned with the higher rate threshold. The personal allowance will be indexed in line with inflation in 2012-13.
Additional higher rate of Income Tax from 2010
From April 2010 a new rate of Income Tax of 50 per cent will apply to income over £150,000. Also, the Income Tax Personal Allowance will be reduced for those with incomes over £100,000, tapering down to zero.
For more information about how to calculate your tax, see Income tax.
Your taxable income is not the same as your total income. This is because all taxpayers are allowed a certain amount of tax-free income (called a personal allowance). Some people may also get other allowances and tax reliefs. You may also have some income that is not taxable.
When using the figures in the taxable income columns in the tables on this page, remember that they refer to your taxable income and not to your total income.
For more information about income that is not taxable, see Taxable and non-taxable income, for details of tax reliefs, see Tax reliefs, and for details of allowances, see Income tax allowances and amounts.
A tax year runs from 6 April one year to 5 April the following year.
The percentage rates or bands of taxable income may change for each tax year.
Income tax: taxable bands and rates 2010/2011
Taxable income |
rate of tax |
0 - £2,440 |
10 per cent |
0 - £37,400 |
20 per cent (basic rate) |
£37,401 - £150,000 |
40 per cent (higher rate) |
Over £150,000 |
50 per cent (additional rate) |
Basic rate
Tax is payable at the basic rate of 20 per cent on taxable income up to £37,400.
Higher rate
If you have more than £37,400 but less than £150,000 of taxable income, you will have to pay a higher rate of 40 per cent tax on the amount above £37,400 and below £150,000.
Additional rate
If you have more than £150,000 you will have to pay an additional rate of 50 per cent tax on the amount above this level.
To calculate the tax payable
To find out how to calculate the amount of tax payable, see Income tax.
The starting rate for savings
Note if you are on a low income, some or all of the income from your savings will be taxable at 10 per cent. This is called the starting rate for savings. Low income means if your income is less than your personal allowance plus £2,440 for the tax year 2010/2011 (and £2,440 for the tax year 2009/2010).
The starting rate for savings does not apply if your taxable income (after allowances are taken off) is more than £2,440 for the tax year 2010/2011 (and £2,440 for the tax year 2009/2010).
