Understanding the UK tax rates for the 2009/2010 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 | 2008-09 (£) | 2009-10 (£) | Increase (£) |
|---|---|---|---|
| Income Tax Allowances | |||
| Personal allowance | 6,035 | 6,475 | 440 |
| Capital Gains Tax Annual Exempt Amount | |||
| Individuals etc | 9,600 | 10,100 | 500 |
| Inheritance Tax Threshold | 312,000 | 325,000 | 13,000 |
| Pension Schemes | |||
| Annual allowance | 235,000 | 245,000 | 10,000 |
| Lifetime allowance | 1,650,000 | 1,750,000 | 100,000 |
Taxable Bands
| Description | 2008-09 (£) | 2009-10 (£) |
|---|---|---|
| Starting Rate | 10% on income up to 2,320 | 10% on income up to 2,440 |
| Basic Rate | 20% on income from 2,321 to 34,800 | 20% on income from 2,441 to 37,400 |
| Higher Rate | 40% on income over 34,800 | 40% on income over 37,400 |
From the 2008–09 tax year, the 10% starting rate applies only to savings income. If your non-savings income exceeds this limit, the 10% starting rate for savings will not apply.
The rates available for dividends for the 2008–09 and 2009–10 tax years are the 10% ordinary rate and the 32.5% dividend upper rate.
Corporation Tax Rates
| Corporation Tax Profits | 2008-09 (£) | 2009-10 (£) |
|---|---|---|
| 0 – 300,000 | 21% | 21% |
| 300,001 – 1,500,000 | Marginal relief | Marginal relief |
| Over 1,500,000 | 28% | 28% |
The Small Companies Rate rose to 21% in April 2008 and was planned to rise to 22% in April 2009, but this was deferred until 2010.
REV2: National Insurance Rates
| Description | 2008-09 (£) | 2009-10 (£) |
|---|---|---|
| Primary Threshold | £105 per week | £110 per week |
| Secondary Threshold | £105 per week | £110 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 £5,435 to £40,040 per year; 1% above £40,040 per year | 8% on profits from £5,715 to £43,875 per year; 1% above £43,875 per year |
| Class 4 Lower Profits Limit | £5,435 per year | £5,715 per year |
| Class 4 Upper Profits Limit | £40,040 per year | £43,875 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 2008/2009, click here.