Contractor Accountant

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

Support ContractorCalculator

Contribute Membership

UK Tax Tables 2009/2010

Tax Rates and Allowances

2008-09 (£) 2009-10 (£) Increase (£)
INCOME TAX ALLOWANCES:
Personal allowance 6,035 6,475 +440
CAPITAL GAINS TAX ANNUAL EXEMPT AMOUNT:
Individuals etc: 9,600 10,100 -
Inheritance tax threshold 312,000 325,000 +23,000
PENSIONS SCHEMES:
Annual allowance: £235,000 £245,000 +10,000
Lifetime allowance: 1,650,000 1,750,000 +100,000

Taxable Bands

Taxable bands 2008-09 (£) Taxable bands 2009-10 (£)
*Starting rate 10% 0 - 2,320 *Starting rate 10% 0 - 2,440
Basic rate 20% 0 - 34,800 Basic rate 20% 0 - 37,400
Higher rate 40% Over 34,800 Higher rate 40% Over 37,400

* From 2008-09 there is a 10 per cent starting rate for savings income only. If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply.

The rates available for dividends for the 2008-09 and 2009-10 tax years are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate.

Corporation Tax Rates

Band Corporation tax profits 2008-09 (£) Corporation tax profits 2009-10 (£)
0 - 300,000 21% 21%
300,001 - 1,500,000 Marginal relief Marginal relief
1,500,001 or more 28% 28%

* The Small companies rate rose to 21% in April 2008, and was planned to rise to 22% in April 2009, but this was deferred until 2010.

REV2: National Insurance Rates

2008-09 2009-10
Primary threshold £105 per week £110 per week
Secondary threshold £105 per week £110 per week
Employees’ primary class 1 rate on earnings between primary threshold and upper earnings limit 11% of £105.01 to £770 per week 1% above £770 per week 11% of £110.01 to £844 per week 1% above £844 per week
Employers’ secondary Class 1 rate 12.8% on earnings above £105 per week 12.8% on earnings above £110 per week
Class 4 rate 8% of £5,435 to £40,040 per year 1% above £40,040 per year 8% of £5,715 to £43,875 per year 1% above £43,875 per year
Class 4 lower profits limit £5,435 per year £5,715
Class 4 upper profits limit £40,040 per year £43,875

For further rates and allowances and historic tables see HMRC.