regarding the 10p tax issue - can someone help?

[Cate]

This month workers are going to get £60 first payment in their pay packets as promised by chancellor - to atone for 10p in the £ fiasco. Can I ask is this is a one off - or is it £600 for every low pay worker??? Can somebody enlighten me please??? Thank you - I'm not involved as I have just started the state pension - but my little sister is in a job and she told me today I was right about this £60 payment I told her she should get in her Sep pay packet - and that all her workmates were happy as they got paid today!!! But is it a one-off??? Please help - I need to tell her!!!!!

[Tony]

Hi Cate,

When will I see the benefit?

From September all taxpayers will see a one-off increase in their pay packet of £60 and then a rise of £10 per month for the rest of the tax year. That is a total £120 for all 22m taxpayers earning up to £40,835 (the new personal allowance of £6,035 plus the upper threshold for the basic-rate, £34,800).

From How the 10p tax u-turn will affect you

I hope this is what you want.

Tony

[Cate]

Thanks Tony for that reply re 10p tax - you seem to know everything!!!! I will tell my sister about that - she and all her work mates were very pleased today with their pay packets!!!

[Tony]

Originally Posted by Cate

Thanks Tony for that reply re 10p tax - you seem to know everything!!!!

I am just good at searching the web

Glad to help

Tony

[katealpha]

I am self-employed, so I am assuming that it means that the raised personal allowance of £6,035 will apply this tax year, and therefore I will be paying tax after that. But all in all, I have no idea if I benefit. I guess I have to wait until I do my tax return....

[Tony]

That's correct as long as you do not earn more than £40,835. Paul is the accountant I am sure he will confirm this if/when he sees this thread.

Tony

[Cate]

Hi Tony - I am a new state pensioner!!! I will be earning just about £6035 a year - but I also get a small private pension of £113 a month. I received a surprise £72 tax rebate on Friday, then yesterday I got my new tax code of only 241L!!!! They said as I am allowed £6035 personal allowance a year, my private pension of about £1426 a year will now be taxed at the new 20% on the first £2000 over the £6035, which I have no qualms with. But does that mean I will be taxed as soon as I have earned £241 - considering that from 22Sep to 5 April 2009 - I will only collect just over half my state pension - not the full lot!!!! What do you think??? Thanks - Cate

[Tony]

Hi Cate, I am not an expert, but according to this: Tax codes - the basics : Directgov - Money, tax and benefits

The tax code 241L means:

* you are entitled to the basic Personal Allowance
* £2,410 must be taken away from your total taxable income and you pay tax on what's left