40% Tax Threshold for 08/09?

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

MrRobin replied

10 February 2008, 12:00
I think it's 0-36000 @ 20% and over 36000 @ 40%

Personal allowance is £5,435
Leave a comment:
Fred Bloggs replied

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.
Leave a comment:
Gonzo replied

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.
Leave a comment:
Fred Bloggs started a topic 40% Tax Threshold for 08/09?

9 February 2008, 21:32
40% Tax Threshold for 08/09?

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.
Tags: None