Tax tables and allowances 2008 / 2009
Personal Allowance 2009/10 (Source: Inland Revenue)
| 2008-09 (£) | 2009-10 (£) | |
|---|---|---|
| Personal allowance | 6,035 | 6,475 |
Income tax rates and taxable bands
| 2008-09 (£) | 2009-10 (£) | |
|---|---|---|
| Starting rate for savings: 10%* | 0-2,320 | 0-2,440 |
| Basic rate: 20% | 0-34,800 | 0-37,400 |
| Higher rate: 40% | Over 34,800 | Over 37,400 |
* From 2008-09 there is a 10% starting rate for savings income only. If your non-savings income is above this limit then the 10% starting rate for savings will not apply.
Dividend Tax Rates
The rates available for dividends are the 10% ordinary rate and the 32.5% dividend upper rate. National Insurance Contributions (NICs)
| £ per week | 2007-08 (£) | 2008-09 (£) | 2009-10 (£) |
|---|---|---|---|
| Lower earnings limit, primary Class 1 | 87 | 90 | 95 |
| Upper earnings limit, primary Class 1 | 670 | 770 | 844 |
| Upper accruals point | n/a | n/a | 770 |
| Primary threshold | 100 | 105 | 110 |
| Secondary threshold | 100 | 105 | 110 |
| Employees' primary Class 1 rate between primary threshold and upper earnings limit | 11% | 11% | 11% |
| Employees' primary Class 1 rate above upper earnings limit | 1% | 1% | 1% |
| Employers' secondary Class 1 rate above secondary threshold | 12.8% | 12.8% | 12.8% |
| Class 2 rate | 2.20 | 2.30 | 2.40 |
| Class 2 small earnings exception | 4,635 per year | 4,825 per year | 5,075 per year |
| Class 3 rate | 7.80 | 8.10 | 12.05 |
| Class 4 lower profits limit | 5,225 per year | 5,435 per year | 5,715 per year |
| Class 4 upper profits limit | 34,840 per year | 40,040 per year | 43,875 per year |
| Class 4 rate between lower profits limit and upper profits limit | 8% | 8% | 8% |
| Class 4 rate above upper profits limit | 1% | 1% | 1% |
News and Articles
- The Pro's and Con's of the Budget 2009 Here, we take a look at how the Budget may affect the Contractor community.…
- How does the pension cap affect Contractors? After the Budget announcement that tax relief on pension contributions will be capped for higher rate tax payers, we urge higher earning Contractors to proceed with caution when it comes to pension investment…
- Is your life covered? As a Contractor, you miss out on the 'death in service benefit' offered to permanent employees but you can still protect your family…
Testimonials
-
I cannot believe I wasted time with other intermediaries…
Dil Sidhu
-
The whole process was so quick and easy with no worries…
Steve Birchall
-
I would have no hesitation in recommending your company to others.
Nick Williams