Income Tax

Tax rates Note 20010/11 2024/13
Starting rate band to £2,150 £2,090
Tax rate 10% 10%
Basic rate band - next £31,150 £30,310
Non-savings rate 22% 22%
Savings rate 20% 20%
UK dividend rate 10% 10%
Higher rate - taxable income over £33,300 £32,400
Higher tax rate 40% 40%
UK dividend rate 32.5% 32.5%
Tax rate 40% 40%
UK dividend rate 32.5% 32.5%
Allowances that reduce taxable income    
Personal allowance (PA) under 65 1 £6,035 £4,895
  65 to 74 1,3 £7,280 £7,090
  75 and over 1,3 £7,420 £7,220
  Blind person's allowance   £1,660 £1,610
Allowances that reduce tax    
Married couple's allowance (MCA)      
Tax reduction 72 to 74 1,2,3 £606.50 £690.50
  75 and over 1,2,3 £613.50 £697.50
The age-related allowances are progressively withdrawn if income exceeds £20,100 £19,500
Minimum PA £6,035 £4,895
Minimum MCA tax reduction £235 £228
Tax Shelters    
Enterprise Investment Scheme (EIS) up to £400,000 £200,000
Venture Capital Trust (VCT) up to £200,000 £200,000
Golden Handshake max. £30,000 £30,000
Rent a Room - exempt on gross annual rent up to £4,250 £4,250


  1. Ages are as the end of the tax year. Ages for the MCA relate to the elder of spouse or civil partner
  2. MCA is available only to those couples where at least one spouse or civil partner was born before 6 April 1935.
  3. The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £20,100 (2005/06 £19,500) until the basic allowance is reached. Similar limits apply to the married couple's allowance: the loss of tax reduction is 10p for each £2 of excess income until the minimum of £235 (2005/06 £228) is reached. (For couples married before 5 December 2014, only the husband's income is taken into account. For those married on or after 5 December 2014 or in a civil partnership, only the higher earner’s income is taken into account).



Want better TAX ADVICE for 2024-5?

Setting up in business | Legal Compliance | Keeping informed | Planning for profit | Raising finance |
Managing growth | Buy, sell or merge | Minimising tax | Agreeing tax liabilities | Tax Rates 2017/2018 |

What Are The Benefits For You Demack?

  • Most business owners are facing challenges in these harsh financial times. We are passionate about your business and finding not only solutions to these challenges, but also to help you progress, grow and, most importantly, keep more of what you earn.
  • Despite the economic downturn our Top 15 customers have increased their combined net worth by 79% and are still growing!
1-3: Compliance work

Regular visits of at least three times a year

Deeper knowledge/understanding of business

We are interested in being closely associated with your business

So you get peace of mind from knowing someone is paying close attention to how your business is running the whole year and not just when the accounts need doing.

We will show you the valuable insight that can be gained from the analysis of your accounts.

Helping you understand your accounts so you can spot potential opportunities or danger areas much more quickly, helping you plan your cash flow more accurately.

And giving you guidance on how you can improve your profitability.

So you know book-keeping and accounting systems are working through the year so preventing any nasty surprises at the end.

You can get a lot more out of your accountant than compliance work.

4: Pushing for Profits

Forecasts to implement the four ways to grow

Using the details of your accounts

Pushing for Profits workshop

Time away from working IN your business to work ON your business allowing you to focus on its true potential.

By using the four ways to grow model you will be able to set a specific action plan to develop your business over the coming financial year to maximize your profit margin.

From our knowledge of your accounts we can create accurate forecasts that plot the best way to grow your business by highlighting the areas with the most potential for increased profitability.

5: Taking Financial Control

Monthly accounts


The monthly reviews of the taking financial control programme will keep you focused on your financial and tactical goals and keep a focused eye on profitable opportunities.

The programme will make sure you have the ALL information you need to allow you to feel confident in all the necessary financial and tactical decisions you will need to make.

It will also make sure you are within or beating your cash flow, balance sheet and P&L forecasts helping you make the most of the money you have and stop unnecessary wastage.

6: Planning For Growth

Development of Business Plan

Helping you keep more of what you earn

Tax mitigation

All good businesses have a robust plan for the future. The Planning for Growth process helps you to construct a solid vision of the direction and growth of your business.

From this strong relationship and in-depth understanding of your company you can develop long term strategies which include tax mitigation planning.


Contact Demack Accountants

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Our Services

Business start-ups, Accounts Preparation, Tax Planning and Advice, Tax enquiry and investigations, Personal & Business Taxation including Income Tax, Self Assessment Tax, Coming into/Leaving the UK, Inheritance tax, Capital Gains Tax, Corporation Tax, National Insurance, PAYE, Value Added Tax Advice and Company Secretarial services

What a Demack Chartered Accountant can do for you? Call +44 (0)20 784 1122