|
Page 5 of 16
Tax and NI
4. Income Tax
4.1 There are currently two income tax bands (for the tax year 2008/09): taxable income (£)tax rate1-34,80020%over 34,80040%
4.2 Taxable income is reduced by a personal allowance.
- For the tax year 2008/09, the basic personal allowance is £6,035 (more for those over retirement age).
- If you run your own business, and your spouse has no other income, it makes sense for tax purposes to employ him or her on a salary of at least £6,035. The job must be genuine, you must pay the going rate and make actual payment.
|
Business Advice