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INCOME TAX ALLOWANCES AND NATIONAL INSURANCE CONTRIBUTIONS – RATES 2008-09
The Government has announced the 2008-09 rates and allowances for Income Tax and National Insurance Contributions.
Income Tax
- All income tax allowances will be increased in line with inflation
- The personal allowance will increase by £210 to £5,435
- The age related allowance has been raised by £1,180 above inflation to £9,030 for people aged between 65 and 74 and to £9,180 for those aged 75 and over.
National Insurance Contributions
- The starting point for employers’, employees’ and self employed NICs in 2008-09 will increase in line with inflation to £105 per week
- The upper earnings and profits limits for NICs will increase from 2008 from £670 to £770 per week
- For the self employed, the rate of Class 2 contributions will increase to £2.30 per week.
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