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Tax Brackets
Each financial year the Inland Revenue sets the tax brackets and the tax rates. These brackets and rates (as set out below) will determine how much tax, if any, you should be paying on your total gross income for that financial year.
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2008/2009
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Earnings
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Tax
Rate
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up to £5,435
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Tax free
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between £5,435 – £41,435
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20%
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over £41,435 +
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40%
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2007/2008
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Earnings
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Tax
Rate
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up to £5,225
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Tax free
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between £5,225 – £7,455
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10%
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between £7,455 –
£39,825
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22%
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over £39,825+
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40%
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2006/2007
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Earnings
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Tax
Rate
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up to £5,035
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Tax free
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between £5,036 – £7,185
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10%
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between £7,186 –
£38,335
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22%
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over £38,336+
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40%
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2005/2006
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Earnings
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Tax Rate
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up to £4,895
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Tax free
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between £4,896– £6,985
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10%
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between £6,986 – £37,295
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22%
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over £37,296 +
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40%
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2004/2005
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Earnings
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Tax Rate
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up to £4,745
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Tax free
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between £4,746 – £6,765
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10%
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between £6,766 – £36,145
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22%
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over £36,146 +
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40%
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2003/2004
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Earnings
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Tax Rate
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up to £4,615
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tax free
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between £4,616 – £6,575
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10%
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between £6,576 – £35,115
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22%
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over £35,116 +
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40%
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