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Annie Hayes

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Tax and NI allowances set for 2008/09

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The Treasury has now published the income tax, national insurance contributions, child and working tax credit rates for 2008/09 and other rates.

Highlights:
The single person’s personal allowance will be £5,435 (2007/08 £5,225), and there are greater increases for those over 65 years and those over 65 and entitled to the married persons allowance as already announced in March’s budget.

The annual allowance for pension contributions increases by £10,000 to £235,000.

Some employees will be up to £520 per year worse off on 6 April 2008 thanks to increases in NI; the weekly upper earnings limit for NI increases by £100 to £770.

The self-employed suffer the same fate as the Class 4 upper profits limit will match the employee upper earnings and increases by 15 per cent or £5,200 to £40,400. This could cost up to £416 extra per year.

Link to: rates for 2008-09

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Annie Hayes

Editor

Read more from Annie Hayes
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