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Income Tax and National Insurance rates for 2009-10

  • Published: Wednesday, 22 April 2009

The government published the 2009-10 rates and allowances for Income Tax and National Insurance in November 2008. If you want the Income Tax and National Insurance rates for 2010-11, follow the link below.

Income Tax personal and age-related allowances 2009-10

Allowances

2008-09

Change

2009-10

Personal allowance (age under 65)

£6,035

+£440

£6,475

Personal allowance (age 65-74)

£9,030

+£460

£9,490

Personal allowance (age 75 and over)

£9,180

+£460

£9,640

Married couple's allowance* (aged less than 75 and born before 6 April 1935)

£6,535

 

**

Married couple's allowance* (age 75 and over)

£6,625

+£340

£6,965

Married couple's allowance* - minimum amount

£2,540

+£130

£2,670

Income limit for age-related allowances

£21,800

+£1,100

£22,900

Blind person’s allowance

£1,800

+£90

£1,890

* Married couple's allowance is given at the rate of 10 per cent.

** In the 2009-10 tax year all in this category will become 75 at some point and will therefore be entitled to the age 75 and over allowance.

Additional higher rate of Income Tax from 2010

Today's Budget also announced that from April 2010 a new rate of Income Tax of 50 per cent will apply to income over £150,000. Also, the Income Tax Personal Allowance will be reduced for those with incomes over £100,000, tapering down to zero.

These changes are to replace the proposed 45 per cent Income Tax rate and the two-stage taper of the personal allowance announced in last November's Pre-Budget Report.

Income Tax - taxable bands

2008-09

£ per year

2009-10

£ per year

Starting savings rate: 10%*

£0-£2,320

Starting savings rate: 10%*

£0-£2,440

Basic rate: 20%

£0-£34,800

Basic rate: 20%

£0-£37,400

Higher rate: 40%

Over £34,800

Higher rate: 40%

Over £37,400


*There is a 10p starting rate for savings income only. If an individual's non savings taxable income exceeds the starting rate limit, the 10p starting rate for savings will not be available for savings income.

National Insurance contributions

 £ per week (unless stated) 2008-09 Change  2009-10
Lower earnings limit (primary Class 1) £90   +£5 £95
Upper earnings limit (primary Class 1) £770  +£74 £844
Upper accruals point n/a n/a  £770
Primary threshold £105 +£5 £110
Secondary threshold £105 +£5 £110
Employees’ primary Class 1 rate between primary threshold and upper earnings limit 11% - 11%
Employees’ primary Class 1 rate above upper earnings limit 1% - 1%
Employees’ contracted-out rebate - salary-related schemes 1.6% - 1.6%
Employees’ contracted-out rebate - money-purchase schemes 1.6% - 1.6%
Married women’s reduced rate between primary threshold and upper earnings limit 4.85% - 4.85%
Married women’s rate above upper earnings limit 1% - 1%
Employers’ secondary Class 1 rate above secondary threshold 12.8% - 12.8%
Employers’ contracted-out rebate, salary-related schemes 3.7% - 3.7%
Employers’ contracted-out rebate, money-purchase schemes 1.4% - 1.4%
Class 2 rate £2.30 +£0.10 £2.40
Class 2 small earnings exception (per year) £4,825 +£250 £5,075
Special Class 2 rate for share fishermen £2.95 +£0.10 £3.05
Special Class 2 rate for volunteer development workers £4.50 +£0.25 £4.75
Class 3 rate (per week) £8.10 +£3.95 £12.05
Class 4 lower profits limit (per year) £5,435 +£280 £5,715
Class 4 upper profits limit (per year) £40,040 +£3,835 £43,875
Class 4 rate between lower profits limit and upper profits limit 8%  - 8%
Class 4 rate above upper profits limit  1%   -  1% 

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Additional links

Pre-Budget Report

Pre Budget Report 2009

Budget 2009

Budget 2009 information

Details of this year's Budget

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