2009-10 NI - rates aligned with personal allowance?

[Jenni384]

The NI Primary Threshold in 2008-09 was broadly aligned with the personal allowance at £5435, until the PA was raised to £6035 (with no increase to the NI thresholds, meaning most of us kept directors salaries at £5435).

I was under the impression that this imbalance had been rectified for 2009-10, am I going mad (no jokes please :p )or was I imagining this?

The Rates and Allowances page on HMRC (http://www.hmrc.gov.uk/rates/nic.htm) would suggest otherwise - a PT of £110 gives an annual rate of £5720 above which Class 1 is payable, with the PA being £6475.

I wish GB would stop fannying about with things!

PS, I am very busy, honest! I just looked something up and David and I were wondering if we'd been seeing things, has anyone else thought this far ahead yet?!... :D

[dp0848]

For the record she is not going mad, she already is mad. :D

[Jenni384]

am I going mad (no jokes please :p )


Thanks lovie :rolleyes:

[taxattack]

Jenny

The alignment of tax and NI at the lower level has gone out of the window - but the upper earnings limit for NI has been increased to "align with" the higher rate income tax band.

In 2007-8 the band for NI at 8% or 11% was £570pw - for 2009-10 it's £734pw, an increase of £8,538 a year.

Chris

[Jenni384]

Jenny

The alignment of tax and NI at the lower level has gone out of the window - but the upper earnings limit for NI has been increased to "align with" the higher rate income tax band.

In 2007-8 the band for NI at 8% or 11% was £570pw - for 2009-10 it's £734pw, an increase of £8,538 a year.

Chris
Thanks, I must have been dreaming when I thought they'd aligned it. Which is a shame.

[RAL]

The NI Primary Threshold in 2008-09 was broadly aligned with the personal allowance at £5435, until the PA was raised to £6035 (with no increase to the NI thresholds, meaning most of us kept directors salaries at £5435).

I was under the impression that this imbalance had been rectified for 2009-10, am I going mad (no jokes please :p )or was I imagining this?

The Rates and Allowances page on HMRC (http://www.hmrc.gov.uk/rates/nic.htm) would suggest otherwise - a PT of £110 gives an annual rate of £5720 above which Class 1 is payable, with the PA being £6475.

PS, I am very busy, honest! I just looked something up and David and I were wondering if we'd been seeing things, has anyone else thought this far ahead yet?!...

Hi Jenny

From 6 April 2011
The NI Primary threshold will be broadly aligned with the income tax personal allowance.

Also there will be inreased in Class 1 and Class 4 by 0.5% to 11.5% and 8.5% respectively. So employers, ni will increased to 13.3%.

The additional rates of Class 1 and Class 4 NIC will be increased by 0.5% to 1.5%.

A new 45% & 37.5% rate of income tax will be aplly to certain income too.

Yes I have thought about as far as 2011;)

I thought you were partner:p So how come you are buy?:rolleyes:

Jenny

The alignment of tax and NI at the lower level has gone out of the window - but the upper earnings limit for NI has been increased to "align with" the higher rate income tax band.

In 2007-8 the band for NI at 8% or 11% was £570pw - for 2009-10 it's £734pw, an increase of £8,538 a year.

Chris

Chris
Looks like you got either year or rates wrong.

The starting point for employers' employees' and self-employed NIC in 2009-10 is £110 per week. The upper earnings and profits limits for Class1 and 4 NIC respectively will increase from £770 to £844 per week.

The upper earnings limit for primary Class1 NIC will be aligned with the level at which people start to pay higher rate income tax.

[taxattack]

Chris
Looks like you got either year or rates wrong.

The starting point for employers' employees' and self-employed NIC in 2009-10 is £110 per week. The upper earnings and profits limits for Class1 and 4 NIC respectively will increase from £770 to £844 per week.

The upper earnings limit for primary Class1 NIC will be aligned with the level at which people start to pay higher rate income tax.

Read it carefully - I referred to the band - 844-110=734.

Chris

[RAL]

Hi Jenny

I thought you were partner:p So how come you are buy?:rolleyes:



Hi Jenny, I just realised there is a typo error :redface:. I mean busy (doing work) not buy.