Why are the UEL and UPL for NICs being aligned with the point at which higher rate tax becomes payable?
This change is part of the personal tax package announced in Budget 2007, it represents the next stage in the Government’s programme of reform to the tax and benefit system. The changes included simplifying the income tax structure by reducing the main rates from 3 to 2. Alignment of the UPL and UEL with the point at which higher rate tax is paid. Above-indexation increases to the personal allowances for those aged 65 and over, and changes to the rates and threshold for Child Tax Credit and Working Tax Credit. The impact of each change should not be viewed in isolation.
