Understanding the UK tax rates for the 2007/2008 tax year is essential for contractors, small business owners, and individuals to ensure compliance with the tax system. These tables provide key information on income tax allowances, taxable bands, corporation tax rates, and national insurance contributions applicable during this period.
Tax Rates and Allowances
| Description | 2006-07 (£) | 2007-08 (£) | Increase (£) |
|---|---|---|---|
| Income Tax Allowances | |||
| Personal allowance | 5,035 | 5,225 | 190 |
| Capital Gains Tax Annual Exempt Amount | |||
| Individuals etc | 8,800 | 9,200 | 400 |
| Other trustees | 4,400 | 4,600 | 200 |
| Inheritance Tax Threshold | 285,000 | 300,000 | 15,000 |
| Pension Schemes | |||
| Annual allowance | 215,000 | 225,000 | 10,000 |
| Lifetime allowance | 1,500,000 | 1,600,000 | 100,000 |
Taxable Bands
| Description | 2006-07 (£) | 2007-08 (£) |
|---|---|---|
| Starting Rate | 10% on income up to 2,150 | 10% on income up to 2,230 |
| Basic Rate | 22% on income from 2,151 to 32,400 | 22% on income from 2,231 to 34,600 |
| Higher Rate | 40% on income over 33,300 | 40% on income over 34,600 |
Corporation Tax Rates
| Corporation Tax Profits | 2006-07 (£) | 2007-08 (£) |
|---|---|---|
| 0 – 300,000 | 19% | 20% |
| 300,001 – 1,500,000 | Marginal relief | Marginal relief |
| Over 1,500,000 | 30% | 30% |
The Small Companies Rate rises from 19% to 20% in April 2007, then to 21% in April 2008, and 22% in April 2009.
REV2: National Insurance Rates
| Description | 2006-07 (£) | 2007-08 (£) |
|---|---|---|
| Primary Threshold | £97 per week | £100 per week |
| Secondary Threshold | £97 per week | £100 per week |
| Employees’ Primary Class 1 Rate | 11% on earnings between primary threshold and upper earnings limit; 1% above upper earnings limit | 11% on earnings between primary threshold and upper earnings limit; 1% above upper earnings limit |
| Employers’ Secondary Class 1 Rate | 12.8% on earnings above secondary threshold | 12.8% on earnings above secondary threshold |
| Class 4 Rate | 8% on profits from £5,225 to £34,840 per year; 1% above £34,840 per year | 8% on profits from £5,225 to £34,840 per year; 1% above £34,840 per year |
| Class 4 Lower Profits Limit | £5,225 per year | £5,225 per year |
| Class 4 Upper Profits Limit | £34,840 per year | £34,840 per year |
While the information in these tables is now historical, it remains useful for understanding past tax systems and for comparing how tax rates have evolved over time. If you’re reviewing past financial records or simply curious about previous tax periods, these tables are a valuable reference.
For more detailed information and additional resources, you can visit HMRC.
If you want to see the UK tax tables for 2006/2007, click here.