free resources > rates & allowances

 


If you operate as a sole trader you will pay income tax on the whole of your profits (not on the sum you draw from your business).

If you operate as a partnership the amount of income tax charged on your profits is dependant on the individual income tax rates paid by the individual partners.

If you are an employee, you will pay income tax on your salary.

 


2008/09
2007/08
Band
£
Rate
%
 Band
£
Rate
%
0 - 2,320
10*
 0 - 2,230
10
2,321 - 36,000
20 **
 2,231 - 34,600
22 *
Over 36,000
40 ***
 Over 34,600
40 ***

* Only applicable to dividends and savings income.

** Except dividends (10%) and, in 2007/08, savings income (20%).

***Except dividends (32.5%)

Other income taxed first, then savings income and finally dividends.