Shield for Contractors

The UK's leading contractor site. 200,000 average monthly visitors.

UK Tax Tables 2008/2009

Tax Rates and Allowances

2007-08 (�) 2008-09 (�) Increase (�)
INCOME TAX ALLOWANCES:
Personal allowance 5,225 6,035 +210
CAPITAL GAINS TAX ANNUAL EXEMPT AMOUNT:
Individuals etc: 9,200 9,600 +400
Other trustees: 4,600  4,800 +200
Inheritance tax threshold 300,000 312,000 +12,000
PENSIONS SCHEMES:
Annual allowance: �225,000 �235,000 +10,000
Lifetime allowance: 1,600,000 1,650,000 +50,000

Taxable Bands

Taxable bands 2007-08 (�) Taxable bands 2008-09 (�)
Starting rate 10% 0 - 2,230 - -
Basic rate 22% 2,231 - 34,600 Basic rate 20% 0 - 34,800
Higher rate 40% Over 34,600 Higher rate 40% Over 34,800

Corporation Tax Rates

Band Corporation tax profits 2007-08 (�) Corporation tax profits 2008-09 (�)
0 - 300,000 20% 21%
300,001 - 1,500,000 Marginal relief Marginal relief
1,500,001 or more 30% 28%

* The Small companies rate rose to 21% in April 2008, and will then rise to 22% in April 2009.

REV2: National Insurance Rates

2007-08 2008-09
Primary threshold �100 per week �105 per week
Secondary threshold �100 per week �105 per week
Employees� primary class 1 rate on earnings between primary threshold and upper earnings limit 11% of �100.01 to �670 per week 1% above �670 per week 11% of �105.01 to �770 per week 1% above �770 per week
Employers� secondary Class 1 rate 12.8% on earnings above �100 per week 12.8% on earnings above �105 per week
Class 4 rate 8% of �5,225 to �34,840 per year 1% above �34,840 per year 8% of �5,435 to �40,040 per year 1% above �40,040 per year
Class 4 lower profits limit �5,225 per year �5,435
Class 4 upper profits limit �34,840 per year �40,040

For further rates and allowances and historic tables see HMRC.