UK TAX RATES

Just like at home, part of your income will go to the UK government, however, unlike home only a part of it is income tax, the rest is your National Insurance contribution.

In order to make sure you’re paying the right amount of tax, you need to get a National Insurance number. Believe us, it’s a long and infuriating process, but otherwise you end up paying a lot more than you need to.

Once you have a job you’ll be given an emergency number while you cut your way through the red tape. You’ll need to make an appointment with your local Jobscentre Plus and they’ll assign you a number.

Income Tax Allowances

Income tax allowances                                            2005-06 (£)         2006-07 (£)

Personal allowance                                                                                     4 895                         5 035

Personal allowance for people aged 65-74                                                7 090                         7 280

Personal allowance for people aged 75 and over                                      7 220                         7 420

Income limit for age-related allowances                                                  19 500                       20 100

Married couple’s allowance for people born before 6 April 1935             5 905                          6 065

Married couple’s allowance - aged 75 or more                                         5 975                          6 135

Minimum amount of married couple’s allowance                                       2 280                          2 350

Blind person’s allowance                                                                            1 610                          1 660

The rate of relief for the continuing married couple’s allowance and maintenance relief for people born before 6 April 1935, and for the children’s tax credit, is 10%.

Taxable Bands

Taxable Bands Allowances                                2005-06 (£)               2006-07 (£)

Starting rate 10%                                                                             0 - 2,090                             0 - 2,150

Basic rate 22%                                                                             2,091 - 32,400                  2,151 - 33,300

Higher rate 40%                                                                             Over 32,400                      Over 33,300