£60 extra for everyone in their September paypackets?

[Zippy]

This might be shite.

http://forums.moneysavingexpert.com/....html?t=806351

After the huge '10p tax row' in April, the Government upped everyone's income tax personal allowance (the amount you pay no tax on) from £5,435 to £6,035 to make up for it.

This takes effect next Sunday (7 Sept), so if you earn between £6,035 and £40,835, watch your payslip to ensure you get the extra cash.

What's the background?

In the government's 2007 Budget report, it got rid of the old 10% rate of income tax, and reduced the 'basic rate' from 22% to 20%. Yet when this change was implemented in April 2008, public uproar followed as people earning between around £6,000 and £15,000 actually brought home less pay.

To fix this imbalance, on 13 May 2008, the Chancellor announced everyone's tax-free Personal Allowance for 2008/09 (i.e. this tax year) would rise £600 to £6,035, to reimburse those who lost out when the 10p tax-rate was scrapped; and give a tax cut to many others.

What happens now?

Even though this was announced in May, personal allowances officially increase to £6,035 on 7 September.

For all basic-rate taxpayers the impact is a £120 gain; this money will go straight into your pay, with the first £60 coming in September, and an extra £10 per month for the rest of the financial year until next April.

You shouldn't need to do a thing in order to get this cash; if it doesn't appear in your next paypacket, speak to whoever deals with the payroll at your place of work.

Will this make up for the end of the 10% band?

If you are a basic-rate taxpayer earning £6,035 or more, you'll pocket £120 more over the year than you would have done before this announcement.

This will make up what you lost when the 10% band disappeared, unless you earn between £7,130 and £9,075, when you could still be up to £30 out of pocket compared to last year. The Govt says many will have had tax credit rises too and possibly balance this out, but if it applies to you read my full Benefits Check-up article to find out more.

Higher Rate Taxpayers won't gain (or lose)

For higher-rate taxpayers, the 40% threshold will shift down by £600 to £40,835, meaning most will earn exactly the same as they would have done (if you earn between £40,835 and £41,460, you make a small profit).

See the Chancellor's full statement from May 2008

For a bigger range of data and figures for overs 65s go to HMRC rates

[ladysavage]

My dad works for revenue and customs, he says its true

[Zippy]

Dancer.

[slicer]

Aye, that could go towards either tattoo work or could keep it for spending money in London

[Tacky]

Ok, so that will go towards my xmas 'nights' out! COmpany and department ones, jeeezo!

Amazing!

[karbon14]

i'll need to get this in a rebate i suppose. this unemployed thing is great fun.

[Evapilotone]

So £60 in Sep and then a tenner for Oct - end of April? What happens after that? Regular tenner extra throughout the year?

[Bobzilla]

Originally Posted by Vonnie

Amazing!

This is why I've been inputting P6's for the last 3 days

[Hammer]

It only affects the 20 million people who were affected by the cut in the first place according to the BBC coverage.

New tax measures come into force this month that should see about 22 million people receive a rebate of around £60.

It all stems from the U-turn by the chancellor on plans to scrap the lowest 10 pence tax band, following pressure from backbench MPs to ease its impact.

The new measures will mean basic rate taxpayers see a tax saving of £120.

They will have £60 less taken from their September pay packets and will then see their net pay rise by £10 per month for the rest of this tax year.

The effective cash-back comes because personal allowances for basic rate taxpayers go up by £600 to £6,035 from 7 September.

http://news.bbc.co.uk/1/hi/business/7590870.stm

[L@ur@]

yasssss i get paid on the 19th as well... mid month driiiinking

whee

[XMachina]

That covers the Stephanotis that we're getting for the wedding bouquet.

I get paid fortnightly, so will it be £60 in one of my wages, or £30 a fortnight? Or is it dependant on my payroll? OH THE QUESTIONS!

Originally Posted by Bobzilla

This is why I've been inputting P6's for the last 3 days

YOU KNEW ABOUT THIS AND DIDN'T TELL ME?!

Originally Posted by XMachina

That covers the Stephanotis that we're getting for the wedding bouquet.

WTF is a Stephanotis. Also, when are you getting married?

[Pantgirl]

I got paid yesterday I also got underpaid...bastards.

[Pier Angeli]

Oh here's hoping! I could really use an extra £60 this month.