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Personal Tax Allowances

It is important that your payroll complies to current legislation. Here are the latest earning thresholds for 2010/11 tax year.

Legislation

The following changes to Income Tax allowances will commence from 6 April 2010:

  • Personal Allowance £6,475

  • From the 2010-11 tax year, all earnings above £150, 000 will attract 50% tax. This is by £1 for every £2 earned above the £100,000 limit.  Income limit for personal allowance £100,000.

  • Personal Allowance for people aged 65-74 £9,490

  • Personal Allowance or people aged 75 and over £9,640

  • Married Couples Allowance (born before 6/4/1935) aged 75 and over £6,965
  • Basic Rate 20% Bandwidth £1 to £37,400

  • Higher Rate 40% Bandwidth £37,401 and above.
Read more ... 

 

 


If you are a registered client, we have given you the complete Tax and National insurance breakdown on our  tax tables page.  
 

http://www.hmrc.gov.uk/employers/epa-understanding.htm

 

Employee Tax Allowances

2008/09

2009/10

Personal Allowance 6,035
6,475
Personal Allowance (65-74)*

9,030

9,490
Personal Allowance (75+)*

9,180

9,640
Blind Person's Allowance

1,800

1,890
Married Couple's Allowance (65-74)*

6,535

Not applicable

Married Couple's Allowance (75+)*

6,625

6,965
Income Limit for age-related allowances

21,800

22,900


National Insurance - Weekly Rates

2009-2010

Lower earnings limit, primary Class 1

 £95

Upper earnings limit, primary Class 1

£844

Employees Primary threshold

£110

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,
salary-related pension  schemes

1.6%

Employers’ secondary Class 1 rate above secondary threshold

 12.8%

Employers’ contracted-out rebate,
salary-related pension  schemes

3.7%

Employers’ contracted-out rebate,
money-purchase schemes

1.4%



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 2009-2010 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 07/02/2010




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