With thanks to Martins Money Tips (www.moneysavingexpert.com) , welcome to the new tax year, here is a brief summary of the highlights (last year’s figures are in brackets).
The good:
Personal allowance UP! Every man, woman and child can now earn £6,475 (£6,035) before paying income tax. For those aged 65-74, it’s £9,490 (£9,030), and for over-75s, £9,640 (£9,180).
Basic rate tax threshold UP. You now pay 20% tax on the first £37,400 (£34,800) over the personal allowance, meaning under 65s hit the higher 40% rate at £43,875 (£40,835).
National insurance start point UP. You now need to earn £110 per week (£105), before paying for NI, usually 11%.
State pension UP. It’s £95.25 (£90.70) a week for a single person.
Pension credit UP. The minimum guaranteed income’s now £130 for single pensioners (£124.05), and £198.45 for couples (£189.35).
New Health in Pregnancy Grant. All pregnant women will get a non-means-tested £190 in their 25th week.
Inheritance tax threshold UP. You can leave £325,000 (£312,000) tax-free.
And the not so good:
Fiscal drag. This isn’t Alistair Darling in women’s clothes, it’s when increased allowances aren’t as generous as they seem. If wages and/or inflation increase by more than the allowances, effectively the government gets more tax revenue anyway, and the real value of the increase is less.
National insurance upper earnings UP. You will pay 11% NI on earnings up to £43,888 a year (£40,040) and 1% above that.
ISA limits. No change. Yet again, the amount savable tax-free hasn’t increased with inflation or earnings.
Child Tax Credit family element. No change. Many families get this, and the freeze at £545 is an effective cut. Yet the means-tested element has increased to £2,235.
Remember to take proper advice before making any decisions…
www.moneysavingexpert.com is a great source of advice and help to those seeking to save money.
April 8th, 2009 at 8:07 am
Very useful this, cheers Ed.
April 8th, 2009 at 8:19 am
I discovered your homepage by coincidence.
Very interesting posts and well written.
I will put your site on my blogroll.
April 8th, 2009 at 8:59 am
[...] Your Financial Business Support created an interesting post today on 2009/10 Tax Year has startedHere’s a short outlineWelcome to the new tax year, here is a brief summary of the highlights (last year’s figures are in brackets). The good: Personal allowance UP! Every man, woman and child can now earn £6,475 ( £6,035) before paying income tax. For those aged 65-74, it’s £9,490 (£9,030) , and for over-75s, £9,640 (£9,180) . Basic rate tax threshold UP. You now pay 20% tax on the first £37,400 (£34,800) over the personal allowance, meaning under 65s hit the higher 40% rate at £43,875 (£40,8 [...]
April 8th, 2009 at 10:09 am
[...] Your Financial Business Support ? Blog Archive ? 2009/10 Tax Year … By EdHart New Health in Pregnancy Grant. All pregnant women will get a non-means-tested ?190 in their 25th week. Inheritance tax threshold UP. You can leave ?325000 (?312000) tax-free. And the not so good: Fiscal drag. This isn?t Alistair Darling … Your Financial Business Support – http://yourfbs.co.uk/ [...]
April 8th, 2009 at 5:25 pm
I was more cheered up than depressed by this summary! Thanks.
April 9th, 2009 at 10:26 am
Hi,
It’s a well know fact that stock market is affected by elections and now Election 2009 are about to begin in some time so for sure they will also have some sort of impact on Indian stock market.
One can find complete report on Impact of elections on stock market
Apart from Elections another major concern for Indian stock market is Inflation. There was a time when we were concerned about rising inflation but now we are conscious about this falling inflation.
So big question is what should day traders and investors do?
Frankly speaking day traders are least concerned about the market they simply follow trend and make maximum out of it. But yes investors should keep there portfolio light till the elections get over.
Please feel free to contact us for any query.
Regards
SHARETIPSINFO TEAM
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