2008/2009

RATES AND ALLOWANCES
2008-2009

 

 

 

 

 

Income Tax

 

 

 

Income
tax allowances

2008-09
(£)

Personal
allowance

6,035
Personal
allowance for people aged 65-74

9,030
Personal
allowance for people aged 75 and over

9,180
Income limit
for age-related allowances

21,800

Married
couple’s allowance for people born before 6 April 1935

6,535
Married
couple’s allowance – aged 75 or more

6,625

Minimum
amount of married couple’s allowance

2,540

Blind
person’s allowance

1,800

 

 

Taxable
bands

Starting
rate 10%

0
Basic rate
20%

0 -
34,800

Higher rate
40%

Over
34,800

 

 

National Insurance

 

 

 

Item

 

Lower
Earnings Limit

£90
per week

Upper
Earnings Limit

£770
per week

Primary
Threshold

£105
per week

Secondary
Threshold

£105
per week

Employee’s
contributions

11%
of £105.01 to £770 per week  1% above £770 per week 

Employee’s
Contracted-out Rebate

1.
6%

Married
Women Reduced Rate

4.85%
of £105.01 to £770 per week  1% above £770 per week 

Employer’s
Contribution Rates

12.8%
on earnings above £105 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

£2.30

Class 2
Small Earnings Exception

£4,825
per year

Special
Class 2 rate for share fishermen

£2.95

Special
Class 2 rate for volunteer development workers

£4.50

Class 3
(voluntary) Contribution

£8.10

Class 4
– Contribution Rate

8% 
of £5,435 to £40,040 per year 1% above £40,040 per year

Class 4
Contributions – Lower Profits Limit

£5,435
per year

Class 4
Contributions – Upper Profits Limit

£40,040
per year

 

 

Capital gains tax annual
exempt amount

 

Individuals
etc

9,600
Other
trustees

4,800

 

 

Inheritance tax
threshold

312,000

 

 

 

 

Pension schemes earnings
cap

117,600

 

 

 

 

Corporation Tax

 

 

 

Starting
rate 0%

N/A
Marginal
relief

N/A
Small
companies’ rate 21%

0 – 300,000

Marginal
relief

300,001 – 1,500,000

Main rate
28%

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

£67,000

De-registration
limit

£65,000

Key Assessment Dates

  

Second
2008/2009 payment on account for all taxpayers		 31 July 2008
Tax
return deadline for paper returns		 31 October 2008
Final
deadline for submitting tax returns, payment of balance of tax liability
for 2008/2009 and first payment on account for 2009/2010		 31 January
2009