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The Government has published the 2008/09 rates and allowances for Income Tax, National Insurance Contributions, Working and Child Tax Credits, Child Benefit/Guardian's Allowance and State Pension and Pension Credit.

A full list of all the proposed increases for other benefits will be announced later this year by the Secretary of State for Work and Pensions.

Tax Allowances

• The personal allowance for those aged under 65 will be £5,435.
• For those aged 65-74, the personal allowance will be £9,030 and £9,180 for those over 75.
• The married couples allowance will be £6,535 (£6,625 age 75 and over).
• The minimum amount of married couple's allowance will be £2,540.
• The income limit for age-related allowances will be £21,800.
• Blind person's allowance will be £1,800.

National Insurance Contributions

• The lower earnings limit for primary Class 1 will be £90 and the upper earnings limit will be £770 a week.
• The primary threshold will rise to £105.
• Class 2 NICs will be £2.30 per week.
• The Class 2 small earnings exemption will rise to £4,825.
• The annual lower profits limit for Class 4 contributions will increase in line with inflation to £5,435.
• The upper profits limit for Class 4 contributions will be raised to £40,040.

Child and Working Tax Credits rates and Child Benefit

• Child Benefit is raised in line with inflation to £18.80 per week.
• The basic element of Working Tax Credit will be £1,800.
• The family element of Child Tax Credit (CTC) (normal and baby addition) remains frozen at £545 per year.
• The income threshold for CTC only rises to £15,575 per year.
• The income threshold for CTC family element only remains at £50,000 per year.
• The maximum eligible childcare costs remains at £175 for one child and £300 for two or more children. The percentage of eligible childcare costs remains at 80 per cent.
• The disregard in Tax Credits for increases in income between one tax year and the next remains at £25,000.

State Pension and Pension Credit

• The basic State Pension is raised in line with inflation to £90.70.
• The Pension Credit standard minimum guarantee is raised by 4.2% to £124.05 per week.

Link

HM Treasury Press Notice: 18 October 2007