Payroll Services |About | Contact | FAQ | Payroll News | Site Map   
CompuPaye Bureau  
    office (020) 8880-4276 | fax (020) 8880-4277 | www.compupaye.com  


   

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,
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%



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No longer applicable on PAYE.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