| Re: This 10p Tax thingmy In 2007/2008 there was a 10% tax rate for people who earned £0-2,230, and then 22% for £2,231-£34,600 followed by 40% for over £34,600. This year the 10% starting rate has been abolished, but the basic rate has been reduced to 20%. The basic rate now applies from £0-£36,000 and the higher rate on income over £36,000.
For the income range you specified, it will mean that those people will be paying 20% tax this year rather than the 22% they paid last year. |