What was announced in Budget 2007 about income tax and NICs?
• The UEL for NICs is to be increased by £75 per week above indexation in April 2008, and, from April 2009, will be aligned with the higher rate threshold – the point at which taxpayers start to pay the higher rate of income tax. • The aligned higher rate threshold and the UEL will be raised by £800 above indexation for 2009/10. • The Upper Profits Limit (UPL) for the self-employed will be increased in line with the UEL (no change in primary legislation is needed to achieve that). • The 10p starting rate will be removed creating a simpler two-rate tax structure for earnings, pensions and savings. A 10p starting rate will be retained for savings. • The 22p basic tax rate on earnings and pensions will be reduced to 20p from April 2008 and will apply to earnings pensions and savings generally.
