New tax year heralds 50% income tax rate

The start of the 2010/11 tax year saw the introduction of a new 50% top rate of income tax for individuals earning in excess of £150,000 a year.

Plans to introduce the new top rate were first announced in the 2009 Budget, in a bid to boost public finances.
However, some business groups have warned that the move will damage business confidence and have a negative impact on investment and innovation.

April also saw a number of other changes to tax and employment legislation, including the introduction of new 'fit notes'.
These replace the traditional sick notes provided by GPs, and allow doctors to specify whether an individual is capable of carrying out any aspect of their normal work. Employers will be expected to take appropriate steps to accommodate their employees' needs.

Eligible employees also have a new right to take up to 26 weeks of paternity leave, if their partner returns to work after the first six months of her maternity leave. However, the right will only apply where: their partner is due to give birth on or after 3 April 2011; they and/or the other adoptive parent receive notification on or after 3 April 2011 that they have been matched with a child for adoption.

In addition, the savings limit for Individual Savings Accounts (ISAs) has risen