National insurance contributionsPersonal taxation
The Chancellor, as has become usual, announced the rates of the personal allowances applying from 6 April 2007, but left any announcement on tax bands and rates for the Budget.
2006/07 |
2007/08 |
|
£ |
£ |
|
Personal allowance (reduces taxable income) |
||
Age under 65 |
5,035 |
5,225 |
Age 65-74 |
7,280 |
7,550 |
Age 75 and over |
7,420 |
7,690 |
Married couple's allowance (reduces tax) |
||
At least one spouse born before 6 April 1935 and elder spouse aged to 74 |
606.50 |
628.50 |
Elder spouse aged 75 and over |
613.50 |
636.50 |
Minimum amount |
235.00 |
244.00 |
Income limit for age-related allowances |
20,100 |
20,900 |
(Ages are as at the end of the tax year)
National insurance contributions
The Chancellor announced some small changes to the NIC thresholds and to the weekly “stamp” rates, to apply from 6 April 2007:
Class 1 (not contracted out) |
Employer |
Employee |
Payable on weekly earnings of £100.01 - £670 |
12.8% |
11% |
Over £670 |
12.8% |
1% |
Men aged 65 and over, and women aged 60 and over |
as above |
Nil |
Class 2 - flat rate, self-employed |
£2.20 per week |
|
Excepted if earnings less than |
£4,635 per annum |
|
Class 3 - voluntary |
£7.80 per week |
|
Class 4 - self-employed, on profits |
||
£5,225 - £34, 840 |
8% |
|
Excess over £34,840 |
1% |
|
(exempt if state retirement age is reached by 6 April 2007) |
||
In July 2006, the Government accepted Lord Carter’s revised recommendation for personal self assessment, so that the deadlines for filing 2008 returns will be 31 October 2008 for paper returns and 31 January 2009 for filing online.
Similarly, the deadlines for filing 2009 returns will be 31 October 2009 and 31 January 2010 respectively.