Personal Tax Allowances
It is important that your payroll complies to current legislation. Here are the latest earning thresholds for 2008/09 tax year.
If you are a registered client, we have given you the complete
Tax and National insurance breakdown on our tax tables page or by
clicking any of these links below:-
Legislation
|
Employee Tax Allowances |
2007/08 |
2008/09 |
| Personal Allowance |
5,225
|
£5,435 |
| Personal Allowance (65-74)* |
7,550
|
9,030 |
| Personal Allowance (75+)* |
7,690
|
9,180 |
| Blind Person's Allowance |
1,660
|
1,800 |
| Married Couple's Allowance (65-74)* |
6,285
|
6,535 |
| Married Couple's Allowance (75+)* |
6,365
|
6,625 |
| Income Limit for age-related allowances |
20,900
|
21,800 |
National Insurance - Weekly Rates |
2008-2009 |
Lower earnings limit, primary Class 1 | £90 |
Upper earnings limit, primary Class 1 |
£770 |
Employees Primary threshold |
£105 |
Up To Earnings Threshold |
Nil |
Employees’ primary Class 1 rate between primary threshold and upper earnings limit |
11% |
Employees’ primary Class 1 rate above upper earnings limit |
1% |
Employees’ contracted-out rebate,
|
1.6% |
Employers’ secondary Class 1 rate above secondary threshold |
12.8% |
Employers’ contracted-out rebate, |
3.7% |
Employers’ contracted-out rebate, |
1.4% |
These thresholds will be implemented on the first payday after 17th May 2008.
Tax Bands | Rates 2008-2009 | |
Lower Rate |
10% |
No longer applicable on PAYE. For savings income only £2,230 |
Basic Rate |
20% |
next £36,600 |
Higher Rate |
40% |
Over £36,600 |
Existing clients can view the tables in more details on the Tax
Tables Support page on our website. The new Tax, NIC and mileage
rates can also be viewed
here.
If your employee has a main job elsewhere where they are paying the
maximum national insurance, they can apply for a deferment of paying
any additional national Insurance if this second job. More
information is on our customer support pages.
Small Employers’ Relief
For the 2007-2008 tax year provided that the total gross Class 1
NICs is £45,000 or less, you will be classed as a small employer.
Small employers are entitled to recover the difference between 13%
of their total national insurance bill and the statutory sick pay
paid for that month.
Small employers are also entitled to recover 100% of the total
Maternity pay paid plus compensation from the Revenue.
This page was last updated
21/04/2008
