2007/2008

RATES AND ALLOWANCES
2007-2008

Income Tax
Income
tax allowances		 2007-08
(£)
Personal
allowance		 5,225
Personal
allowance for people aged 65-74		 7,550
Personal
allowance for people aged 75 and over		 7,690
Income limit
for age-related allowances		 20,900
Married
couple’s allowance for people born before 6 April 1935		 6,285
Married
couple’s allowance – aged 75 or more		 6,365
Minimum
amount of married couple’s allowance		 2,440
Blind
person’s allowance		 1,730
Taxable
bands
Starting
rate 10%		 0
- 2,230
Basic rate
22%		 2,231 -
34,600
Higher rate
40%		 Over
34,600

National Insurance
Item  
Lower
Earnings Limit		 £87
per week
Upper
Earnings Limit		 £670
per week
Primary
Threshold		 £100
per week
Secondary
Threshold		 £100
per week
Employee’s
contributions		 11%
of £100.01 to £670 per week  1% above £670 per week
Employee’s
Contracted-out Rebate		 1.
6%
Married
Women Reduced Rate		 4.85%
of £100.01 to £670 per week  1% above £670 per week
Employer’s
Contribution Rates		 12.8%
on earnings above £100 per week
Employers’
contracted-out rebate, salary-related schemes		 3.70%
Employers’
contracted-out rebate, money-purchase schemes		 1.40%
Class 2
Self employed Contribution		 £2.20
Class 2
Small Earnings Exception		 £4,635
per year
Special
Class 2 rate for share fishermen		 £2.85
Special
Class 2 rate for volunteer development workers		 £4.35
Class 3
(voluntary) Contribution		 £7.80
Class 4
- Contribution Rate		 8%
of £5,225 to £34,840 per year 1% above £34,840 per year
Class 4
Contributions – Lower Profits Limit		 £5,225
per year
Class 4
Contributions – Upper Profits Limit		 £34,840
per year

Capital gains tax annual
exempt amount

Individuals
etc		 9,200
Other
trustees		 4,600

Inheritance tax
threshold

 285,000

Pension schemes earnings
cap

 105,600

Corporation Tax
Starting
rate 0%		 N/A
Marginal
relief		 N/A
Small
companies’ rate 20%		 0 – 300,000
Marginal
relief		 300,001 – 1,500,000
Main rate
30%		 1,500,001 or more

Approved Mileage Rates
Cars
and Vans – First 10000 business miles in the tax year		 40p
Cars and
Vans – Each mile over 10000 business miles in the tax year		 25p
Motorcycles
- First 10000 business miles in the tax year		 24p
Motorcycles
- Each mile over 10000 business miles in the tax year		 24p
Bicycles
- First 10000 business miles in the tax year		 20p
Bicycles -
Each mile over 10000 business miles in the tax year		  20p

Value Added Tax
Standard
rate		 17.50%
Annual
Registration limit		 £64,000
De-registration
limit		 £62,000

Key Assessment Dates
Second
2007/2008 payment on account for all taxpayers		 31 July 2007
Tax
return deadline if the Revenue is to calculate tax liability		 30 September 2007
Final
deadline for submitting tax returns, payment of balance of tax liability
for 2007/2008 and first payment on account for 2005/2006		 31 January
2008