Useful Info

Financial Year 06 April 2008 to 05 April 2009

Income rates for 2008-2009

All income tax allowances will increase in line with inflation. The personal allowance will increase to £5,435. The age-related personal allowances will rise to £9,030 for people aged between 65 and 74 and to £9,180 for those aged 75 and over.

Income Tax – taxable bands

The starting rate of Income Tax has been abolished and the basic rate has been cut from 22% to 20% creating a simpler structure of two rates .The tax bands have increased in line with indexation.

Basic Rate 20% - up to £36000 Higher Rate 40% - over £36000

National Insurance Contributions

National insurance contribution (NIC) rates and thresholds for 2008-09 were announced in the 2007 Pre-Budget Report. The starting point for employers’, employees’ and self- employed NICs in 2008-09 will increase in line with inflation to £105 per week. NICs are not paid on earnings or profits below this amount. The upper earnings and profits limits for NICs will increase from April 2008 in line with inflation from £670 to £770 per week. For the self-employed, the rate of Class 2 contributions will increase to £2.30 per week.

This information was found at the following web address:

http://www.direct.gov.uk/en/Nl1/Newsroom/Budget2008/DG_072925

Rates & Allowances - Travel

http://www.hmrc.gov.uk/rates/travel.htm