* From 2008-09 there is a 10% starting rate for savings income
only. If your non-savings income is above this limit then the 10%
starting rate for savings will not apply.
Dividend Tax Rates
The rates available for dividends are the 10% ordinary rate and
the 32.5% dividend upper rate.
National Insurance Contributions (NICs)
£ per week
2007-08
2008-09
2009-10
Lower earnings limit, primary
Class 1
£87
£90
£95
Upper earnings limit, primary
Class 1
£670
£770
£844
Upper accruals point
N/A
N/A
£770
Primary threshold
£100
£105
£110
Secondary threshold
£100
£105
£110
Employees’ primary Class
1 rate between primary threshold and upper earnings limit
11%
11%
11%
Employees’ primary Class
1 rate above upper earnings limit
1%
1%
1%
Employers’ secondary Class
1 rate above secondary threshold
12.8%
12.8%
12.8%
Class 2 rate
£2.20
£2.30
£2.40
Class 2 small earnings exception
£4,635 per year
£4,825 per year
£5,075 per year
Class 3 rate
£7.80
£8.10
£12.05
Class 4 lower profits limit
£5,225 per year
£5,435 per year
£5,715 per year
Class 4 upper profits limit
£34,840 per year
£40,040 per year
£43,875 per year
Class 4 rate between lower profits limit and upper profits
limit
