Tax threshold 2008-2009

[cloud9]

Originally the tax threshold was raised by £210 in the budget this year but im sure i heard somewhere it had been revised and was now £600 higher, something to do with a muck up over 10p tax? has anyone else heard this or am i just going tax crazy!!

sorry my daughter wanted the angel too!

[tulip0803]

You are right. to compensate for the loss of 10p band and to save some votes everyone is being issued new tax codes. Comes into affect in Sept for paid workers backdated to April

[cloud9]

Thank you wasn't quite sure if i was imagining it

[cloud9]

i just found this to answer my own question!
How much will the 2007 Budget affect my pay?

This is not an easy thing to work out, this is what was shown in the budget in March 2007:

# 22% tax bracket lowered to 20% for 2008 2009
# 10% tax bracket scrapped in 2009 2010
# 40% tax bracket raised to 43000 in 2009 2010
# National insurance ceiling raised to 43000 in 2009 2010

Also the most important bit

13 May 2008 Chancellor’s Announcement:
Helping low-income customers affected by the changes to the personal tax system announced at Budget 2007

Earlier today, the Chancellor of the Exchequer, Alistair Darling, announced changes to the personal tax system to help low-income customers affected by the abolition of the 10% starting rate of income tax.

The Chancellor announced that the personal allowance for the 2008-09 tax year will be increased by £600 from £5,435 to £6,035, and the threshold at which someone starts to pay higher rate tax will be reduced by £600.

[miffy]

Thanks for that

miffy xx

[tulip0803]

The 10p tax bracket has already been scrapped. I am working part-time and ended up paying £20 more tax per month from April than in March.

This is why there is a big hoo-haa about the 10p tax bracket now because people who earn less than £18,000 a year are paying more tax now than they did in the last tax year . Anyone earning over £18,000 is paying less tax.

[cloud9]

The 10p tax bracket has already been scrapped. I am working part-time and ended up paying £20 more tax per month from April than in March.

This is why there is a big hoo-haa about the 10p tax bracket now because people who earn less than £18,000 a year are paying more tax now than they did in the last tax year . Anyone earning over £18,000 is paying less tax.

Are you still worse off though now they have announced they are raising the basic allowance to £6035? At the end of the tax year i will now be better off with this higher tax free allowance. Going on 07-08 income i will pay £100 less this year (08-09) if i earn the same as last year.

[tulip0803]

While I am still working and not self-employed I am worse off. I am paying an extra £18 tax a month and the new tax free allowance will work out at £10 a month so I will still be paying an extra £8 a month to Gov .

[cloud9]

While I am still working and not self-employed I am worse off. I am paying an extra £18 tax a month and the new tax free allowance will work out at £10 a month so I will still be paying an extra £8 a month to Gov .

Dont you just love the incentive for actually working, its no wonder so many people dont bother!