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Resources Please feel free to use our resources page to help you in your business. |
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Rates and Allowances – Income Tax |
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Income Tax allowances |
2006-07 (£) | 2007-08 (£) | |
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Personal allowance |
5,035 | 5,225 | |
| Personal allowance for people aged 65-74 | 7,280 | 7,550 | |
| Personal allowance for people aged 75 and over | 7,420 | 7,690 | |
| Income limit for age-related allowances | 20,100 | 20,900 | |
| Married couples allowance (aged < 75 born before 6/4/35) | 6,065 | 6,285 | |
| Married couple’s allowance (aged 75 and over) | 6,135 | 6,365 | |
| Minimum amount of married couple’s allowance | 2,350 | 2,440 | |
| Blind person’s allowance | 1,660 | 1,730 | |
| Tax relief for the married couples allowance = 10% | |||
| Taxable Bands | 2005-06 (£) | 2006-07 (£) | 2007-08 (£) |
| Starting rate 10% | 0 – 2,090 | 0 – 2,150 | 0 - 2,230 |
| Basic rate 22% | 2,091 –32,400 | 2,151 – 33,300 | 2,231 - 34,600 |
| Higher Rate 40% | over 32,400 | over 33,300 | over 34,600 |
| Approved mileage rates pence per mile | 2006-07 | 2007-08 | |
| Up to 1,000 c.c. | 40p/25p | 40p/25p | |
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1,001-1,500 c.c. |
40p/25p | 40p/25p | |
| 1,501-2,000 c.c. | 40p/25p | 40p/25p | |
| Over 2,000 c.c. | 40p/25p | 40p/25p | |
| Where 40 per mile for first 10,000 miles and excess @ 25p per mile | |||
| Rates and Allowances – National Insurance Contributions | |||
| £ per week | 2006-07 | 2007-08 | |
| Lower earnings limit primary class 1 | £84 | £87 | |
| Upper earnings limit primary class 1 | £645 | £670 | |
| Primary threshold | £97 | £100 | |
| Secondary threshold | £97 | £100 | |
| Employees primary class 1 rate between primary threshold & Upper earnings limit | 11% | 11% | |
| Employees primary class 1 rate above upper earnings limit | 1% | 1% | |
| Employees contracted-out rebate | 1.6% | 3.7% | |
| Married women’s reduced rate between primary threshold & Upper earnings limit | 4.85% | 4.85% | |
| Married women’s rate above upper earnings limit | 1% | 1% | |
| Employers secondary class 1 rate above secondary threshold | 12.8% | 12.8% | |
| Employers contracted-out rebate, salary related schemes | 3.5% | 3.5% | |
| Employers contracted-out rebate, money purchase scheme | 1% | 1.4% | |
| Class 2 rate | £2.10 | £2.20 | |
| Class 2 small earnings exception | £4,465 per year | £4,635 per year | |
| Class 3 rate | £7.55 | £7.80 | |
| Class 4 lower profits limit | £5,035 per year | £5,225 per year | |
| Class 4 upper profits limit | £33,540 per year | £34,840 per year | |
| Class 4 rate between lower profits limit & upper profits limit | 8% | 8% | |
| Class 4 rate above upper profits limit | 1% | 1% | |
| VAT | 2006-07 | 2007-08 | |
| Standard rate | 17.5% | 17.5% | |
| VAT fraction | 7/47 | 7/47 | |
| Registration limit | £61,000 | - | |
| Deregistration limit | £59,000 | - | |
| Cash accounting | £660,000* | - | |
| *£825,000 if already using it (2002/03 – 2003/04 £750,000) | |||