Corporation Tax
For the financial year begining 1 April 2008, the corporation tax rate for large companies is reduced from 30% to 28% but the small companies rate rises from 20% to 21%. The not small companies rates will remain unchanged for the financial year 2009. The small companies rate will increase to 22% with efffect from 1 April 2009.
Income Tax
The basic rate for income up to £36,000 is taxed at 20%. Personal allowance has increased from £5,225 to £5,435.
Tax on dividends income remain at 10% for income up to £36,000 thereafter will be taxed at 32.5%.
The official rate of interest on staff loan remain unchange at 6.25%.
