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UK tax year

UK Income Tax and take-home pay in 2006/07

The 2006/07 tax year ran from 6 April 2006 to 5 April 2007. Below are that year's Personal Allowance, Income Tax bands, National Insurance and student loan thresholds, with take-home pay on common salaries.

Work out your take-home pay for 2006/07

In 2006/07 non-savings taxable income had a 10% starting rate on the first £2,150 and a 22% basic rate up to £33,300.

Income Tax bands in 2006/07 (England, Wales and Northern Ireland)

The Personal Allowance was £5,035. The bands below are of taxable income, after the Personal Allowance, as HMRC states them. With the standard allowance the higher rate started on a salary over £38,335.

BandRateTaxable income
Starting rate10%£0 to £2,150
Basic rate22%£2,151 to £33,300
Higher rate40%over £33,300

National Insurance in 2006/07

  • Employees (Class 1): 11% between £5,035 and £33,540 a year, and 1% above.
  • Employers: 12.8% above £5,035 a year.
  • Self-employed (Class 4): 8% on profits between £5,035 and £33,540, and 1% above. Most also paid Class 2, a flat weekly amount.

Student loans in 2006/07

  • Plan 1: 9% of income over £15,000.

Take-home pay in 2006/07

For an employee in England, Wales or Northern Ireland on the standard tax code, with no pension, student loan or other deductions.

SalaryIncome TaxEmployee NITake-home a yearA month
£20,000£3,034£1,646£15,320£1,277
£30,000£5,234£2,746£22,020£1,835
£40,000£7,734£3,200£29,066£2,422
£50,000£11,734£3,300£34,966£2,914
£60,000£15,734£3,400£40,866£3,405
£80,000£23,734£3,600£52,666£4,389
£100,000£31,734£3,800£64,466£5,372
£150,000£51,734£4,300£93,966£7,830

Questions

What was the Personal Allowance in 2006/07?

£5,035.

Where did the higher rate start in 2006/07?

With the standard Personal Allowance, the higher rate (40%) started on income over £38,335, that is taxable income over £33,300.

How much National Insurance did employees pay in 2006/07?

11% on earnings between £5,035 and £33,540 a year, and 1% above £33,540.

Disclaimer

This tool is for general guidance only. It does not replace official deadlines, Companies House records, HMRC guidance, or professional advice. Always confirm your own dates and figures with the official sources.

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