Business News - August
Effects Of The Increase To Personal Allowances
Lincolnshire based accountants Moore Thompson are informing individuals that HM Revenue and Customs have announced the effects of changes to personal allowances. HMRC increased the annual personal allowance for earnings before they are subject to income tax at 20%. This was by means of compensation for the abolition of the 10p tax rate.
The changes will come into effect on 7th September 2008, but will be backdated to 6th April 2008. The personal allowance increases by £600 to £6035, which equates to a tax saving of £120 over the course of the tax year. The basic rate band has been reduced by £1200 to £34,800.
Mark Hildred comments: “Employees with a monthly paydate on or after 7th September will see a £60 reduction in their tax paid that month. If a September paydate falls before the 7th they will see a £70 reduction in their October tax. After this, monthly-paid employees will see up to £10 less tax deducted from them, with weekly paid employees noticing a £2.30 difference.”
For more information contact Moore Thompson on 01775 711333
