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Tax rates and allowances 2008
| 2008/09 | 2007/08 | |||||||||||||||
| £ | £ | |||||||||||||||
| Income tax rates | ||||||||||||||||
| 10% lower rate tax | - | Up to 2,230 | ||||||||||||||
| 20% basic rate tax | Up to 36,000 | - | ||||||||||||||
| 22% basic rate tax | - | 2,231 - 34,600 | ||||||||||||||
| 40% higher rate tax | above 36,000 | above 34,600 | ||||||||||||||
| Personal allowanes | ||||||||||||||||
| Personal allowance (age under 65) | 5,435 | 5,225 | ||||||||||||||
| Personal allowance (age 65 - 74) | 9,030 | 7,550 | ||||||||||||||
| Personal allowance (age 75 and over) | 9,180 | 7,690 | ||||||||||||||
| Married couple's allowance (age less than 75 and born before 6 April 1935) | 6,535 | 6,285 | ||||||||||||||
| Married couple's allowance (age 75 and over) | 6,625 | 6,365 | ||||||||||||||
| Married couple's allowance - minimum amount | 2,540 | 2,440 | ||||||||||||||
| Income limit for age-related allowances | 21,800 | 20,900 | ||||||||||||||
| Blind person's allowance | 1,800 | 1,730 | ||||||||||||||
| National insurance | ||||||||||||||||
| Lower earnings limit, primary Class 1 (per week) | 90 | 87 | ||||||||||||||
| Upper earnings limit, primary Class 1 (per week) | 770 | 670 | ||||||||||||||
| Primary and secondary threshold (per week) | 105 | 100 | ||||||||||||||
| Employee's primary Class 1 rate between primary theshold and upper earnings limit | 11.00% | 11.00% | ||||||||||||||
| Employee's primary Class 1 rate above upper earnings limit | 1.00% | 1.00% | ||||||||||||||
| Employee's contracted-out rebate - salary-related scheme | 1.60% | 1.60% | ||||||||||||||
| Employee's contracted-out rebate - money-purchase scheme | 1.60% | 1.60% | ||||||||||||||
| Married woman's reduced rate between primary theshold and upper earnings limit | 4.85% | 4.85% | ||||||||||||||
| Married woman's rate above upper earnings limit | 1.00% | 1.00% | ||||||||||||||
| Employer's secondary Class 1 rate above secondary threshold | 12.80% | 12.80% | ||||||||||||||
| Employer's contracted-out rebate, salary-related schemes | 3.70% | 3.70% | ||||||||||||||
| Employer's contracted-out rebate, money-purchase schemes | 1.40% | 1.40% | ||||||||||||||
| Class 2 rate (per week) | 2.30 | 2.20 | ||||||||||||||
| Class 2 small earning exception (per year) | 4,825 | 4,635 | ||||||||||||||
| Special Class 2 rate for share fishermen (per week) | 2.95 | 2.85 | ||||||||||||||
| Special Class 2 rate for volunteer development workers | 4.50 | 4.35 | ||||||||||||||
| Class 3 rate (per week) | 8.10 | 7.80 | ||||||||||||||
| Class 4 lower profits limit | 5,435 | 5,225 | ||||||||||||||
| Class 4 upper profits limit | 40,040 | 34,840 | ||||||||||||||
| Class 4 rate between lower profits limit and upper profits limit | 8.00% | 8.00% | ||||||||||||||
| Class 4 rate above upper profits limit | 1.00% | 1.00% | ||||||||||||||
| State pension/pension credit | ||||||||||||||||
| State pension | ||||||||||||||||
| Category A or B basic pension | 90.70 | 87.30 | ||||||||||||||
| Category B basic pension (lower) - husband's insurance | 54.35 | 52.30 | ||||||||||||||
| Category C or D - non-contributory | 54.35 | 52.30 | ||||||||||||||
| Pension Credit | ||||||||||||||||
| Standard minimum guarantee - single | 124.05 | 119.05 | ||||||||||||||
| Standard minimum guarantee - couple | 189.35 | 181.70 | ||||||||||||||
| Pensions | ||||||||||||||||
| Annual allowance | 235,000 | 225,000 | ||||||||||||||
| Lifetime allowance | 1,650,000 | 1,600,000 | ||||||||||||||
| Reliefs and incentives | ||||||||||||||||
| Enterprise Investment Scheme (EIS) - maximum | 500,000 | 400,000 | ||||||||||||||
| Venture Capital Trust (VCT) - maximum | 200,000 | 200,000 | ||||||||||||||
| Enterprise Management Incentive Scheme (EMI) - employee limit | 120,000 | 100,000 | ||||||||||||||
| Individual Savings Account (ISA) | ||||||||||||||||
| - total maximum investment | 7,200 | 7,000 | ||||||||||||||
| - maximum cash element of ISA | 3,600 | 3,000 | ||||||||||||||
| Capital gains tax | ||||||||||||||||
| Individuals | 9,600 | 9,200 | ||||||||||||||
| Certain trusts for disabled persons | 9,600 | 9,200 | ||||||||||||||
| Other trusts | 4,800 | 4,600 | ||||||||||||||
| Working and Child tax credits rates | ||||||||||||||||
| Working tax credit | ||||||||||||||||
| Basic element | 1,800 | 1,730 | ||||||||||||||
| Couple and lone parent element | 1,770 | 1,700 | ||||||||||||||
| 30 hour element | 735 | 705 | ||||||||||||||
| Disabled worker element | 2,405 | 2,310 | ||||||||||||||
| Severe disability element | 1,020 | 980 | ||||||||||||||
| 50+ return to work payment (16-29 hours) | 1,235 | 1,185 | ||||||||||||||
| 50+ return to work payment (30+ hours) | 1,840 | 1,770 | ||||||||||||||
| Childcare element of the Working tax credit | ||||||||||||||||
| Maximum eligible cost for one child (per week) | 175 | 175 | ||||||||||||||
| Maximum eligible cost for two or more children (per week) | 300 | 300 | ||||||||||||||
| Percentage of eligible costs covered | 80.00% | 80.00% | ||||||||||||||
| Child tax credit | ||||||||||||||||
| Family element | 545 | 545 | ||||||||||||||
| Family element, baby addition | 545 | 545 | ||||||||||||||
| Child element | 2,085 | 1,845 | ||||||||||||||
| Disabled child element | 2,540 | 2,440 | ||||||||||||||
| Severely disabled child element | 1,020 | 980 | ||||||||||||||
| Income threshold and withdrawal rates | ||||||||||||||||
| First income threshold | 6,420 | 5,220 | ||||||||||||||
| First withdrawal rate | 39.00% | 37.00% | ||||||||||||||
| Second income threshold | 50,000 | 50,000 | ||||||||||||||
| Second withdrawal rate | 6.67% | 6.67% | ||||||||||||||
| First threshold for those entitled to Child tax credit only | 15,575 | 14,495 | ||||||||||||||
| Income disregard | 25,000 | 25,000 | ||||||||||||||
| Child benefit/Guardian's allowance rates | ||||||||||||||||
| Eldest/only child | 18.80 | 18.10 | ||||||||||||||
| Other children | 12.55 | 12.10 | ||||||||||||||
| Guardian's allowance | 13.45 | 12.95 | ||||||||||||||
| Inheritance tax | ||||||||||||||||
| Single persons nil rate band | 1 - 312,000 | 1 - 300,000 | ||||||||||||||
| Single persons 40% band | over 312,000 | over 300,000 | ||||||||||||||
| Married couples or civil partnerships allowance nil rate band | 624,000 | - | ||||||||||||||
| Taxation of trusts | ||||||||||||||||
| Trust tax rate excluding dividend income | 40.00% | 40.00% | ||||||||||||||
| Dividend trust rate | 32.50% | 32.50% | ||||||||||||||
| Basic rate trust income tax band | 500 | 500 | ||||||||||||||
| Corporation tax | ||||||||||||||||
| Normal main rate (profits above £1,500,000) | 28% | 30% | ||||||||||||||
| Small companies rate (profits below £300,000) | 21% | 20% | ||||||||||||||
| Margin relief fraction | 7/400 | 1/40 | ||||||||||||||
| VAT | ||||||||||||||||
| Regsitration threshold | 67,000 | 64,000 | ||||||||||||||
| Deregistration threshold | 65,000 | 62,000 | ||||||||||||||
| Cash accounting scheme | 1,350,000 | 1,350,000 | ||||||||||||||
| Annual accounting scheme | 1,350,000 | 1,350,000 | ||||||||||||||
| Flat rate scheme | 150,000 | 150,000 | ||||||||||||||
| Stamp duty land tax (SDLT) | ||||||||||||||||
| 0% residential | 0 - 125,000 | 0 - 125,000 | ||||||||||||||
| 1% residential | 125,001 - 250,000 | 125,001 - 250,000 | ||||||||||||||
| 3% residential | 250,001 - 500,000 | 250,001 - 500,000 | ||||||||||||||
| 4% residential | over 500,000 | over 500,000 | ||||||||||||||
| 0% non-residential | 0 - 150,000 | 0 - 150,000 | ||||||||||||||
| 1% non-residential | 150,001 - 250,000 | 150,001 - 250,000 | ||||||||||||||
| 3% non-residential | 250,001 - 500,000 | 250,001 - 500,000 | ||||||||||||||
| 4% non-residential | over 500,000 | over 500,000 | ||||||||||||||
| Stamp duty on shares and marketable securities remains at 0.5% | ||||||||||||||||
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