• Home
• News
• Start-Up Guides
• Contractor FAQs
• Umbrella Company
• Limited Company
• Tax / Accounting
• IT Contractor Rates
• Contract Rate Checker
• IR35
• IT Contractor Insurance
• Money / Investing
• IT Contracts / Work
• Service Provider News
• Directory
• About Us

Independent Contractor Services Free IR35 & Contractor Tax Review Call free 0800 195 3750 | Email

HMRC announces income tax changes for 2008/9 tax year

Published on Aug 5, 2008 |

• Print this article
• Email this article

Following the Chancellor's "10% tax band fiasco", the Government has confirmed that the personal allowance and higher rate tax bands for the 2008/9 tax year will be changed in an attempt to make up for the abolition of the initial tax band following Budget 2008.

The changes tax effect from 7th September 2008, with the changes being effectively backdated to the start of the tax year.

The personal allowance for the 2008/9 tax year will rise to £6,035 (£810 more than last year). However, the higher rate (40%) tax band entry level has been lowered to £34,800 (£200 more than last year).

The two changes have been calculated in such a way that higher rate tax payers will not see any extra benefit from the abolition of the 10% band.

You can read the complete 2008/9 tax tables here, and the official HMRC guidance here.