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COMMUNITY

ACCOUNTANCY

SERVICE LIMITED

TAX RATES AND ALLOWANCE

 

 

 
Income Tax

Rates 2008-2009 (from 7th September 2008)

  • Basic Rate 20% up to £34,800
  • Higher Rate 40% Over £34,800

PAYE Thresholds:

  • Tax becomes payable after:
    • £116 weekly £503 monthly

Rates 2007-2008

  • Starting rate 10% 0-£2,150
  • Basic Rate 22% £2,151-£33,300
  • Higher Rate 40% Over £33,300

PAYE Thresholds:

  • Tax becomes payable after:
    • £100 weekly £435 monthly

National Insurance (2008-2009)

Weekly  Monthly
Lower Earnings Level £90  £390
Earnings Threshold  (ET) £105 £453
Upper Earnings Level (UEL) £770 £3,337

Employee's Contribution (Table A) are 11% on earnings between ET and UEL and 1% on earnings above UEL

Employer’s Contribution 12.8% on all earnings above £105 (weekly) £453 (monthly)

National Insurance (2007-2008)

Weekly  Monthly
Lower Earnings Level £87 £377
Earnings Threshold  (ET) £100 £435
Upper Earnings Level (UEL) £670 £2,904

Employee's Contribution (Table A) are 11% on earnings between ET and UEL and 1% on earnings above UEL

Employer’s Contribution 12.8% on all earnings above £100 (weekly) £435 (monthly)

Authorised Mileage Rates (2008-2009)

Motor cars and vans

  • Up to 10,000 business miles 40p per mile
  • Over 10,000 business miles 25p per mile

Motor Cycles 24p per mile

Bicycles 20p per mile

Additional Passenger Rate

You can also pay up to 5p per mile free of tax and NICs for each employee who travels as a passenger on a business journey.

E & OE
Last Updated: 30 September 2008