Annual Returns - Income Tax Bands & Allowances, National Insurances Contributions Rates & Allowances

07-08 (£)

08-09 (£)

09-10 (£)

Personal allowance

5,225

6,035

6,475

Personal allowance for people aged 65-74 (10% relief)

7,550

9,030

9,490

Personal allowance for people aged 75 and over (10% relief)

7,690

9,180

9,640

Married couple's allowance (born before 6th April 1935 but aged under 75)

6,285

6,535

na

Married couple's allowance - aged 75 and over

6,365

6,625

6,965

Income limit for age-related allowances

20,900

21,800

22,900

Minimum amount of married couple's allowance

2,440

2,540

2,670

Blind person's allowance

1,730

1,800

Income tax bands

07-08 Rate

08-09 Rate

09-10 Rate

07-08 (£)

08-09 (£)

09-10 Rate

Starting Rate

10%

abolished

abolished

0 - 2,230

abolished

abolished

Basic Rate

22%

20%

20%

2,231 - 34,600

0 - 34,800

0 - 37,400

Higher Rate

40%

40%

40%

Over 34,600

Over 34,800

Over 37,400

£ per week

2008-09

2009-10

2010-11

Lower earnings limit, primary Class 1

£90

£95

£97

Upper earnings limit, primary Class 1

£770

£844

£844

Upper accruals point

N/A

£770

£770

Primary threshold

£105

£110

£110

Secondary threshold

£105

£110

£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%

Class 1A rate on employer provided benefits (1)

12.8%

12.8%

12.8%

Employees’ contracted-out rebate

1.6%

1.6%

1.6%

Married women’s reduced rate between primary threshold and upper earnings limit

4.85%

4.85%

4.85%

Married women’s rate above upper earnings limit

1%

1%

1%

Employers’ secondary Class 1 rate above secondary threshold

12.8%

12.8%

12.8%

Employers’ contracted-out rebate, salary-related schemes

3.7%

3.7%

3.7%

Employers’ contracted-out rebate, money-purchase schemes

1.4%

1.4%

1.4%

Class 2 rate

£2.30

£2.40

£2.40

Class 2 small earnings exception

£4,825 per year

£5,075 per year

£5,075 per year

Special Class 2 rate for share fishermen

£2.95

£3.05

£3.05

Special Class 2 rate for volunteer development workers

£4.50

£4.75

£4.85

Class 3 rate

£8.10

£12.05

£12.05

Class 4 lower profits limit

£5, 435 per year

£5, 715 per year

£5, 715 per year

Class 4 upper profits limit

£40, 040 per year

£43, 875 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%