|
|
Pension Premiums
-
Individuals can enjoy tax relief on up to £3,600 (gross)
or 100% of current year earnings up to £235,000 (2007/2008 £225,000).
-
Employers can contribute up to £235,000 for an employee
in a year and will obtain a deduction for the expense if wholly and
exclusively for the trade.
-
Maximum tax efficient
fund at the time benefits are taken is capped at £1.65m (2007/2008 £1.6m).
-
Only
current earnings count for the 100% limit. It is not possible to
carry back contributions to prior years or use prior earnings.
National Insurance Contributions
2008/2009
Class 1 (not contracted out)
|
Weekly
Earnings
|
Employer
|
Employee
|
|
£0 - £105.00
|
Nil
|
Nil
|
| £105.01- £770.00 |
12.8% |
11% |
|
Over £770
|
12.8%
|
1%
|
|
Men 65 and over and women 60 and over
|
As above
|
Nil
|
Employers NIC of
12.8% applies to most benefits in kind and on tax paid on an employer's
behalf under a PAYE settlement.
Class 2 Self-Employed
|
2008/2009 |
2007/2008 |
| Flat
rate |
£2.30
p.w. |
£2.20
p.w. |
| Small
earnings exception Limit |
£4,825
p.a. |
£4,635
p.a. |
Class 3 non-employed
| |
2008/2009 |
2007/2008 |
| Voluntary |
£8.10 p.w. |
£7.80
p.w. |
Class 4 self-employed
| |
2008/2009 |
2007/2008 |
| Rate
on Profits |
8% |
8% |
| Annual
lower limit |
£5,435 |
£5,225 |
| Annual
upper limit |
£40,040 |
£34,840 |
|
Over £40,040 |
1% |
1% |
| Maximum
per Annum |
No Limit |
No Limit |
|
