Freelance UK:
Tax Rates and Allowances 2007/08
Tax Rates and Allowances 2007 / 2008
(Source: Inland Revenue)
For a complete list of rates and allowances for 2006-7, and older tax tables, visit the Inland Revenue site.
| 2006-07 (£) | 2007-08 (£) | Increase (£) | |
| Income tax allowances | |||
| Personal allowance | 5,035 | 5,225 | 190 |
| Capital gains tax annual exempt amount: | |||
| Individuals etc: | 8,800 | 9,200 | 400 |
| Other trustees: | 4,400 | 4,600 | 200 |
| Inheritance tax threshold | 285,000 | 300,000 | 15,000 |
| Pension schemes earnings cap | 105,600 |
Taxable Bands
| Taxable bands 2006-07 (£) | Taxable bands 2007-08 (£) | ||
| Starting rate 10% | 0 - 2,150 | Starting rate 10% | 0-2,230 |
| Basic rate 22% | 2,151 - 33,300 | Basic rate 22% | 2,231 - 34,600 |
| Higher rate 40% | Over 33,300 | Higher rate 40% | Over 34,600 |
Corporation Tax Rates
| Corporation tax profits 2006-07 (£) | Corporation tax profits 2007-08 (£) | ||
| Small companies' rate 19% | 50,001 - 300,000 | Small companies' rate 19% | 0 - 300,000 |
| Marginal relief | 300,001 - 1,500,000 | Marginal relief | |
| Main rate 30% | 1,500,001 or more | Main rate 30% | |
National Insurance Rates
| 2006-07 | 2007-08 | ||
| Primary threshold | £97 per week | £100 per week | |
| Secondary threshold | £97 per week | £100 per week | |
| Employees’ primary class 1 rate on earnings between primary threshold and upper earnings limit | 11% |
11% |
|
| Employers’ secondary Class 1 rate |
12.8% |
12.8% | |
| Class 4 rate |
8% of £5,035 to £33,540 per year 1% above £33,540 per year |
8% of £5,225 to £34,840 per year 1% above £34,840 per year |
|
| 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 |
For a complete list of rates and allowances for 2007-8, visit the Inland Revenue site.
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