40% Tax Threshold for 08/09?

**Gonzo** · 9 February 2008, 21:47

Originally posted by Fred Bloggs View Post

I'm planning my likely levels of dividend, salary, pension contributions etc.. for next year. I always plan ahead on certain assumptions. The current HMRC web page mysteriously does NOT tell you what the threshold of higher rate income tax will be for 08/09. See below-

http://www.hmrc.gov.uk/rates/it.htm

Why should this be the case? What is the threshold next year? Thanks.

I think that this will be announced in the Budget on 12th March, but if you want a rule of thumb, take the current threshold and add 2% to it since 2% is what the Government will be trying to tell everyone is the level of inflation at the moment.

**Fred Bloggs** · 10 February 2008, 10:04

Originally posted by Gonzo View Post

I think that this will be announced in the Budget on 12th March, but if you want a rule of thumb, take the current threshold and add 2% to it since 2% is what the Government will be trying to tell everyone is the level of inflation at the moment.

Don't disagree, but I "thought" I remembered that in the 2007 budget that when GB announced the removal of the 10% tax rate, he was lifting the 40% threshold by a lot more than inflation. The reason- I "thought" he was moving the upper earnings limit for employee NI upto the same 40% threshold. Hence another big rise in NI contributions will take effect for employees earning upto the 40% threshold. Effectively the "standard" rate of tax is now 20 (income tax) + 11.8 (NI) = ~32% tax. Did I dream this? My wife agrees, she remembers it too.

**MrRobin** · 10 February 2008, 12:00

I think it's 0-36000 @ 20% and over 36000 @ 40%

Personal allowance is £5,435

40% Tax Threshold for 08/09?