New tax year, new tax rates
The new tax rate bandwidths are as follows:
- Basic Rate (currently 20%) on all taxable income from £1 to £37400
- Higher rate (currently 40%) on all taxable income over £37400
- The income tax personal allowance has increased from £6035 to £6475 for 2009/2010.
Please note employee & employer national insurance is payable on income over £5715.