 |
|
|
Current Tax and NI rates
Personal allowances
| |
2008~09 |
2007~08 |
Increase |
| Personal allowance |
£5,435 |
£5,225 |
210 |
| Blind person's allowance |
£1,800 |
£1,730 |
70 |
| Age allowance income limit |
£21,800 |
£20,900 |
900 |
| Age related allowances |
| Personal allowance |
65 - 74 |
£9,030 |
£7,550 |
1480 |
| Personal allowance |
75+ |
£9,180 |
£7,690 |
1490 |
| Married couple's allowance |
DOB prior 6/4/1935 |
£6,535 |
£6,285 |
250 |
| Married couple's allowance |
75+ |
£6,625 |
£6,365 |
260 |
| Minimum married couple allowance |
£2,540 |
£2,440 |
100 |
Tax
| |
2008~09 |
2007~08 |
Increase |
Lower rate
PAYE |
from |
N/A |
- |
10% |
£0 |
- |
-10% |
| to |
- |
£2,230 |
-2230 |
Start rate
Savings &
Dividends |
from |
10% |
£0 |
10% |
£0 |
- |
- |
| to |
£2,320 |
£2,230 |
90 |
| Basic rate |
from |
20% |
£0 |
22% |
£2,231 |
- |
-2% |
| to |
£36,000 |
£34,600 |
1400 |
| Savings |
20% |
20% |
- |
| Dividends |
10% |
10% |
- |
| Higher rate |
from |
40% |
£36,001 |
40% |
£34,601 |
- |
1400 |
| Savings |
40% |
40% |
- |
| Dividends |
32.5% |
32.5% |
- |
NI
| |
2008~09 |
2007~08 |
Increase |
| Class 1 - employee |
| Lower earnings limit (LEL) |
£90 per wk |
£87 per wk |
3 |
| Employees earnings threshold (ET) |
£105 per wk |
£100 per wk |
5 |
| Rate up to LEL |
0% |
0% |
- |
| Rate between LEL and ET |
0% |
0% |
- |
Rate between ET and UEL
(not contracted-out) |
11% |
11% |
- |
| Rate in excess of UEL |
1% |
1% |
- |
| Rate between ET and UEL (contracted-out) |
9.4% |
9.4% |
- |
| Upper earnings limit (UEL) |
£770 per wk |
£670 per wk |
100 |
| Class 1 - employer |
| Earnings threshold (ET) |
£105 per wk |
£100 per wk |
5 |
Rate above ET
(not contracted-out) |
12.8% |
12.8% |
- |
Rate between ET and UEL
(contracted-out) |
9.1% |
9.1% |
- |
Rate in excess of UEL
(contracted-out) |
12.8% |
12.8% |
- |
| Class 1A |
| Rate |
12.8% |
12.8% |
- |
| Other taxed benefits in kind |
12.8% |
12.8% |
- |
| Class 1B |
| Rate |
12.8% |
12.8% |
- |
| Class 2 |
| Main rate |
£2.30 per wk |
£2.20 per wk |
0.10 |
| Small earnings exception limit |
£5,035 pa |
£4,895 pa |
140 |
| Class 3 (voluntary contribution) |
| Flat rate |
£8.10 per wk |
£7.80 per wk |
0.25 |
| Class 4 (Self employed on profits) |
| Rate between LPL and UPL |
8% |
8% |
- |
| Rate in excess of UPL |
1% |
1% |
- |
| Lower profits limit (LPL) |
£5,435 pa |
£5,225 pa |
190 |
| Upper profits limit (UPL) |
£40,040 pa |
£34,840 pa |
5200 |
|
