Quick budget question

for the tax year 06/07:

the basic personal allowance was £5,035 which is tax free

the starting rate of tax was 10% which was on the first £2,150 of taxable income (ie. the annual income less the personal allowance)

the basic rate was 22% which was charged between £2,151 and £33,000 of taxable income

the higher rate of 40% was charged on all taxable income in excess of £33,000.
</p>


for the tax year 07/08:

the basic personal allowance is &pound;5,225</p>

with the changes, the next &pound;37,775 is taxed at 20%</p>

the higher rate of 40% is now effective on taxable income in excess of &pound;43,000
</p>

 

RE: Really!. Missed that bit.

I was listening to a lady called Frances Largerberg who writes for the Institute of Chartered Accountants, insttute of Taxation etc. That's how she interpreted it. With Gordie the devil's in the detail !!!

 

It says 22% rate doesn't go down until April 2008.

Can't find exactly when 10% rate is being abolished from.

 

UPDATE

just read the FT report which states that basic rate is down from April 2008 and 10% band is abolished April 2009 !!! </p>

I think I'll keep mi gob shut until I receive my full budget analysis !!!!</p>

 

Right then lol -- (Edited)

If I've got this right and done the maths right then £16,035 is the point where the old and new match up. Anything below and you're worse off. Anything above and you're better off.

 

I've just seen that too. Hurrah for Gordon!

http://www.ananova.com/news/story/sm_2252261.html?menu=

 

here's my maths

At the moment....

first £5,035 = no tax
next £2,150 = £215 tax
next £8,850 = £1,947 tax
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so first £16,035 = £2,162 tax


and new system

first £5,225 = no tax
next £10,810 = £2,162 tax
-------------------------------
so first £16,035 = £2,162 tax


I think i've cracked it. But probably not lol

 

&pound;43,000 band for higher rate is April 09 onwards

 

RE: I've just seen that too. Hurrah for Gordon!

not very often we see Hurrah for Gordon on this site !!!</p>

Also don't get too excited I've looked on the Treasury website and the statement there is very obscure. </p>

 

People on low pay (12-15k) will be paying approx 50-80 more in tax per year. These are the people that the tax system should be looking to benefit. Terrible politics from a party that used to represent the working man.

 

What a Labour Government - pensioners and low paid to pay more tax - brilliant.... nt

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