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Posted

Just got my payslip with no extra money in it. Weren't us people affected by the scrapping of the 10p tax band going to get an extra £60 in Sept pay packet and then £10 a month until next April?

Is it because I do less than 30 hours a week?

Posted
Have you got an X next to your tax code? If so, it means you are not on the cummulative coding and depending on how much tax you pay, you should get a refund in April. I'd ask your payroll dept. if you are still in doubt.
Posted
It isn't extra money as such, it is a reduction in tax liability. ie. if you usually have £120 tax taken, they were supposed to only take £60 this month. I'd ask you payroll people.
Posted (edited)

The 10p in the £ tax bracket was scrapped and your allowance before tax should have gone up. So for example last years Tax allowance was 5525 (or something similar) so anything after that 0-2600 was on the 10p tax and anything from 2600-35000 was 20p in the £.

Doing away with the 10p now means you pay from 0-35000 @ 20p but you are given a higher threshold for your allowance, so it should be roughly 6000.

 

Unless you're like me.... I've been paying basic rate tax for the past 2 1/2 years and i'm really looking forward to seeing the difference when they sort it out. As well as looking forward to the cheque with plenty of 0's on it that i'm owed. Again this month in a new job im on basic rate, but hopefully that will all change next month when it has been sorted. Paying £100 a month extra tax for almost 30 months, wish i knew then what i do now :)

Edited by apoth0r
grammer! :(
Posted (edited)

HM Revenue & Customs: Understanding the changes to the Personal Allowance and basic rate tax band in September 2008

Your Pay Packet Will Be Bigger This Month - 05/09/2008

 

Basically the old 10% rate is gone, the old 22% rate is down to 20%, so you are now either taxed at 40% (higher rate) or 20% (basic rate). Everyone who was on 10% is now being taxed at 20% after allowances.

 

:eek:.

 

To compensate for this they have increased your personal tax allowance (for this year only) which will save you £120 in tax over the year.

 

If you pay tax at the basic rate of 20 per cent

 

The changes take effect from the first pay day on or after 7 September and equate to a tax saving of approximately £120 over the course of the tax year. If your September pay day is on or after 7 September, you will pay up to £60 less tax that month. If you’re paid monthly and your September pay day was before 7 September, you will pay up to £70 less tax in October. How much your tax reduces will depend on how much you’ve paid already – and in some cases you might get a repayment as part of your pay.

 

After this if you’re paid monthly you will pay up to £10 a month less tax and if you’re paid weekly you will pay up to £2.30 less tax. (The actual figures will depend on your income.)

If you pay tax at the higher rate of 40 per cent

 

The changes only benefit basic rate taxpayers. To find out more read the later section If you’re a higher rate taxpayer.

How the changes affect your tax code

 

Your employer or pension provider has adjusted your tax code based on information that we sent them.

 

* All tax codes that end in L have increased by 60.

* Codes P, V, Y, BR, D0 or NT are staying the same.

* Other codes may change, but this depends on your particular circumstances and we will also write to you about this.

 

To find out more read the relevant section below.

Edited by somabc
Posted
You should've got £60, as it was a set amount according to the govt.

 

The only case where this isn't true is if you have only paid £22 tax this year.... In which case £22 would be the correct refund as you shouldn't have paid any with the new allowance.

 

In brighter news, we now get an extra £10 per month each. That'll buy you 2 loaves of bread, five eggs or an inner city new build flat.

  • Thanks 1
Posted
Whoopee - I got my £60. Wonder what I shall spend it on? Increased car fuel duty, increased food prices, or, probably more tax bailing out fat leeching banks/bankers who have screwed the economy...
  • Thanks 3
Posted
spot on tech_guy, nulabours best tesco impression [every little 'elps] isn't fooling me....i'm no less the pit pony subsidising the feckless and paying for financial mismanagement by the govt., the rich and the bankers...than i was before the £60.

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