ContractorMoney

Independent Financial Advisors for IT Contractors

Tax tables and allowances 2007 / 2008

Personal Allowance 2009/10 (Source: Inland Revenue)

2008-09 (£) 2009-10 (£)
Personal allowance 6,035 6,475

Income tax rates and taxable bands

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

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

Dividend Tax Rates

The rates available for dividends are the 10% ordinary rate and the 32.5% dividend upper rate. National Insurance Contributions (NICs)

£ per week 2007-08 (£) 2008-09 (£) 2009-10 (£)
Lower earnings limit, primary Class 1 87 90 95
Upper earnings limit, primary Class 1 670 770 844
Upper accruals point n/a n/a 770
Primary threshold 100 105 110
Secondary threshold 100 105 110
Employees' primary Class 1 rate between primary threshold and upper earnings limit 11% 11% 11%
Employees' primary Class 1 rate above upper earnings limit 1% 1% 1%
Employers' secondary Class 1 rate above secondary threshold 12.8% 12.8% 12.8%
Class 2 rate 2.20 2.30 2.40
Class 2 small earnings exception 4,635 per year 4,825 per year 5,075 per year
Class 3 rate 7.80 8.10 12.05
Class 4 lower profits limit 5,225 per year 5,435 per year 5,715 per year
Class 4 upper profits limit 34,840 per year 40,040 per year 43,875 per year
Class 4 rate between lower profits limit and upper profits limit 8% 8% 8%
Class 4 rate above upper profits limit 1% 1% 1%

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