2009-10 NI - rates aligned with personal allowance?

Jenni@FarrantFrost said:

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 )or was I imagining this?

The Rates and Allowances page on HMRC 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?!...

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taxattack said:

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

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RAL said:

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.

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RAL said:

Hi Jenny

I thought you were partner So how come you are buy?

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