Yet another column on the deductions working sheet

From April 2009 the Upper Earnings Limit (UEL) for employees rises significantly for the second year in succession. Announced in November's Pre Budget Report, the limit goes up by a further £74 per week next year, on top of the £100 per week increase in the current year, taking the top limit to £844 per week - a rise of 26% over the two years.

The change this year is designed to align the Upper Earnings Limit - the point at which the employee contributions falls to 1% - with the higher rate tax threshold. This alignment was proposed in Gordon Brown's last Budget in March 2007.

Continued...