Tax rebate this month or not? [Archive] - Forums @ The Digital Fix

04-09-2008, 17:18

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.

From BBC (http://news.bbc.co.uk/1/hi/business/7590870.stm)

Kryten

04-09-2008, 17:21

From BBC (http://news.bbc.co.uk/1/hi/business/7590870.stm)

To stop higher rate tax payers also benefiting, the starting point for the 40% tax rate has been cut by £600.

At the start of this tax year, the higher rate began at an income of £41,435.

This would have been pushed up to £42,035 as a result of the £600 personal allowance increase, but will now start at £40,835 instead.

:| So not everyone can benefit the same.

davey1970

04-09-2008, 17:24

i am defo getting the £60 this month, and i read somewhere that it should be in peoples september pay packet.

ceiberman

04-09-2008, 17:43

All taxpayers not liable to higher rate tax and who have already paid £60 tax (or more) this year should receive the rebate.

Whether they receive it this month or not depends on when their employer/pension payer runs their payroll....as mentioned above the changes don't take effect until the 7th. So those who miss out this month because their payroll date will receive £70 next month. Those who get the £60 this month should then pay £10 less tax each month from October onwards.

Higher rate taxpayer will not receive a rebate as the higher rate threshold has been adjusted too....but they will be no worse off than they are at the moment.....but seen as they would have already received the maximum possible benefit from the drop in the basic rate from 22% to 20%, they haven't done too badly this year.

AdamBrunt

04-09-2008, 19:31

Is it a coincidence that I got a letter from the revenue this morning saying my taxcode was changing from 540T to 600T ??

LordoftheDance

04-09-2008, 19:41

So I guess being made redundant at the start of July and still being out of work now will render me non-tax rebateable. :(

Cockeye

04-09-2008, 20:20

Cool thanks for that!

I have just been put up a payscale point at work with it being backdated six months and will get that in october. So could get an extra £60 a month this month, £10 extra in future plus my backdated pay in one lump sum in October, and then if very lucky my April payrise in November also backdated for six months (although the union are still arguing that one and threatening another strike).

Could be a good few months (relatively) running up to Christmas then.

neilalford

05-09-2008, 08:00

So I guess being made redundant at the start of July and still being out of work now will render me non-tax rebateable. :(

It should still work out if you start work again before the end of the tax year, I think, or if you not you could fill in a tax return for the year which should get the rebate back to you (plus probably a bit more due to the time you weren't earning).

LordoftheDance

05-09-2008, 10:15

It should still work out if you start work again before the end of the tax year, I think, or if you not you could fill in a tax return for the year which should get the rebate back to you (plus probably a bit more due to the time you weren't earning).

Hmmm... I'll do some research into that. Thanks Neil.

Zaichik

05-09-2008, 11:59

:| So not everyone can benefit the same.

I don't understand why they're so reluctant for higher rate tax payers to benefit. They earn more, but they pay more tax. Isn't it enough that an individual who lives alone and earns £50,000 pays more tax/NI than 2 people who each earn £25,000 but, arguably, place greater demands on public services. :mad:

LiviLion

05-09-2008, 12:23

I don't understand why they're so reluctant for higher rate tax payers to benefit.

Because Gordo and pals have hammered the top rate tax payer every year since 1997.

Kryten

05-09-2008, 13:55

Symo

05-09-2008, 14:02

As LiviLion says, its the Labour way :| It is totally correct that someone earning say 50k living alone would put a lot less strain on the services than two people at 25k each, especially as there is also a good chance that the person on 50k has private medical too which they are again taxed on despite it reducing the load on public service :mad:

Yes but, in New Liebour World, people who earn good salaries don't work hard for it and so should have it removed, piece by piece. The money is then given to the "Hardest Working Families". You know the ones. Work really hard on their Fat asses watchin Sky and eatin crap.

"Hardest Working Families". Copyright - just about every Labour politition but, used almost Daily by the Grumpy, ****-witted Scotsman.

God, I loathe that phrase. IME the hardest working people earn decent money. Yes, yes, I know there are exceptions but, it's a reasonable generalization.

jjwf

05-09-2008, 14:52

Yes but, in New Liebour World, people who earn good salaries don't work hard for it and so should have it removed, piece by piece. The money is then given to the "Hardest Working Families". You know the ones. Work really hard on their Fat asses watchin Sky and eatin crap.

"Hardest Working Families". Copyright - just about every Labour politition but, used almost Daily by the Grumpy, ****-witted Scotsman.

God, I loathe that phrase. IME the hardest working people earn decent money. Yes, yes, I know there are exceptions but, it's a reasonable generalization.

What a load of ********. I grate my arse off for less than the UK average, however I am happy in my job & I guarantee 99% of so called hard workers wouldn't last a month.

Symo

05-09-2008, 15:02

What a load of ********. I grate my arse off for less than the UK average, however I am happy in my job & I guarantee 99% of so called hard workers wouldn't last a month.

I said, I know there are exceptions. But, you work hard to make your own money. Do you sit around watching sky all day? I doubt it. Have you got a fat arse? Doubt that too. ;)

I was aiming my comments at the prople who sit around and collect benefits. They're the one's who usually gain when Gordo starts a sentance with "The hardest working families". THAT'S my whole bloody point!

See the whole 10% debacle for a case in point....

neilalford

05-09-2008, 21:15

What a load of ********. I grate my arse off for less than the UK average, however I am happy in my job & I guarantee 99% of so called hard workers wouldn't last a month.

Have you considered getting a higher paid job? Or are you just going to moan about it?

You say you're happy, so why complain, if you think you deserve a higher wage, get a job that will pay that, if you don't want to because you're happy doing what you do, then fine, and stop complaining, if you can't, there's presumably a reason.

misskittyfantastic

07-09-2008, 22:25

Does anyone know how this will affect someone on Maternity Leave?

My SMP has just run out and now I'm in the 12 weeks of nil pay before I go back to work. So I won't have any tax this month to reduce by £60...

08-09-2008, 11:38

:| So not everyone can benefit the same.
You're no worse off than you would have been had they not announced the benefit, you're just no better off either.

AdamBrunt

19-09-2008, 10:24

Hi all,

As pay day approaches for most people and this is the month when the govt are going to correct "abolition of 10% tax band" issue ....

1) Is this £60 getting paid to everyone ? Or just people earning less than £x and if so what is x ?

2) How is the money going to be paid ? A temporary change in your tax code ? Or as some sort of misc addition ? I ask because last month my tax code changed from 540T to 600T but this might be a coincidence as I have just changed jobs with different benefits/pay.

3) Is this a one-off payment ?

TIA for any help.

Regards,

Adam Brunt

cedge

19-09-2008, 10:39

I believe these are the answers:

1) I believe it's all tax payers of the basic rate of tax i.e. 20%

2) It will be reflected in the amount of tax paid in that month.

3) It's a one of reduction with a £10 reduction in the subsequent 6 months to the end of the financial year.

WiganWarrior

19-09-2008, 10:39

Following an announcement by the Chancellor earlier this year, Basic Personal Allowances have increased for the 2008/09 tax year by £600 from £5,435 to £6,035.

The amount of taxable income that you can receive before you start paying tax at higher rate (40%) has been reduced from £36,000 to £34,800.

The changes will be reflected in the September 2008 pay, (paid on 18th September 2008), but have been backdated to the start of the tax year (6th April).

Colleagues who pay tax at Basic Rate (currently 20%) may pay up to £60 less tax in September than they would normally pay, and may pay approximately £10 per month less tax up until the end of the tax year, although this will depend on how much tax has been paid so far this year.

As the changes have been made to benefit Basic Rate taxpayers only, people who pay tax at the higher rate of 40% should not see any change to the amount of tax being paid unless taxable pay drops into the basic rate bracket during the year.

H M Revenue and Customs have been working to review tax codes and everyone who has a tax code ending in 'L' will automatically see their code increase by 60, for example tax code 543L will become 603L.

Colleague's who have tax codes staring with a 'K' or ending with a 'T' should have their codes re-calculated and should receive revised notices through the post from the HMRC.

There will be no changes for people on the following tax codes:

BR, NT, 0T and codes ending with V, Y or P.

Further information can be obtained from the H M Revenue and Customs website www.hmrc.gov.uk/employers/epa-understandin

Hope this helps

AdamBrunt

19-09-2008, 10:47

thanks

Sammy709Sony930

19-09-2008, 11:29

Well I just got paid and I'm down over £100 for this month compared to last.

neilalford

19-09-2008, 12:40

Well I just got paid and I'm down over £100 for this month compared to last.

That must be for some other reason, or a cock up, as no one should end up worse off.

Kryten

19-09-2008, 12:53

Merging threads

camaj

19-09-2008, 14:06

It is totally correct that someone earning say 50k living alone would put a lot less strain on the services than two people at 25k each

That might (or might not) be true, but I don't think anyone is making an argument based on who uses public services more.

You say you're happy, so why complain, if you think you deserve a higher wage, get a job that will pay that

I'd love to live in your world where people can just wake up one morning and walk into a company of their choice where they're handed the job they want! Sadly the real world isn't like that, you can't just "get a higher paid job". If you could, no one would work in low paid jobs.

I believe jjwf was complaining about Symo's attitude rather than his job, the two were exclusive. There's no reason why he can't complain about that attitude because he's happy in his job

Flopsy

19-09-2008, 14:22

Kryten

19-09-2008, 14:29

****. Looks like the top earner just got screwed again...

But the problem is a lot of those in the 40% bracket are not really top earners, its not a lot of income now to fall into that bracket.

Cockeye

19-09-2008, 15:25

Really? What do you term as "not a lot of income"?

We just got emailed to say our payslips have been "delayed" and wont be here until after payday :suspect:

Pheonix

19-09-2008, 15:35

Really? What do you term as "not a lot of income"?

We just got emailed to say our payslips have been "delayed" and wont be here until after payday :suspect:

Someone could be on £35k (40%), but be supporting a wife and two kids...

Jim989

19-09-2008, 15:43

YAY! Homebrewed Money Politics.

Single Person in High Paid Job : Why should I be paying extra because I earn more? Just because I work harder! I use services less than say a family would, they should pay more!

Yeah thats right, cos that single person as soon as they were ejected out of their mother entered a job and was paying their own way :cuckoo:

Heck, if those people who pay 40% think its unfair then maybe they should take a paycut under the same logic as those low-paid people should take a higher paid job :lol:

camaj

19-09-2008, 15:47

It reminds me of that guy who was whinging in here that he had no money because of all the holidays he took his family on and the private school fees for his kids and should be regarded in the same way as a single person on a minimum wage.

19-09-2008, 16:52

Someone could be on £35k (40%), but be supporting a wife and two kids...

£35K is not in the 40% tax bracket it's just below £41K when you enter it.

and

I'm on less than £35K and supporting a wife and five kids :D

LordoftheDance

19-09-2008, 16:57

I'm on less than £35K and supporting a wife and five kids :D

That must be quite tough, assuming your wife doesn't work...

I was on £20k in my last job, no children, and my fiancee was earning her own money, but I was still finding it difficult to stay afloat. It's even worse now I'm unemployed!

Cockeye

19-09-2008, 17:07

Yeah - my brother in law earns around £40K a year, yet still gets child benefit for the kids, tax credits and God knows what else.

Yet me as a single person on less than £17K a year still has to pay full market rent on a property (instead of 50/50 as a couple), 75% of council tax (instead of 50/50 as a couple), I don't qualify for tax credits as I am single, I don't qualify for a council house, as I am single.

And people on 40K a year moan? I think Kryten is a bit sore because he has to drive a one year old BMW instead of a new one this year ;)

Remains

19-09-2008, 17:11

Yet me as a single person on less than £17K a year still has to pay full market rent on a property (instead of 50/50 as a couple), 75% of council tax (instead of 50/50 as a couple), I don't qualify for tax credits as I am single, I don't qualify for a council house, as I am single.

I used to hit 40% tax bracket, but don't any longer as I switched to Limited Company and now pay myself much less each month. It all works out.

However, I can't wait until my girlfriend moves in here next year to ease the bills, council tax, overpay the mortgage etc. And I might even get some sex more than once a week too. Happy days.

19-09-2008, 17:35

That must be quite tough, assuming your wife doesn't work...

I'm old and have paid a huge amount off my mortage over the years, now on a fair bit still and Tax Credit etc. helps ;)

Wife does not get paid, but works harder than me, or so she tells me :D

neilalford

19-09-2008, 21:51

I believe jjwf was complaining about Symo's attitude rather than his job, the two were exclusive. There's no reason why he can't complain about that attitude because he's happy in his job

I was merely replying to his post (many weeks ago, though the thread has been merged now), where he suggested that anyone who earned more than him didn't deserve what they earned, and pointed out that if he thought he was so much better that he should just get a job like their's and earn more.

Cockeye

23-09-2008, 07:34

Yay! :clap:

Just got paid this morning - complete with extra £60.

Transferred it straight into my "saving up for Guitar Hero World Tour" account! :)

ceiberman

23-09-2008, 17:25

But the problem is a lot of those in the 40% bracket are not really top earners, its not a lot of income now to fall into that bracket.

The latest stats I could find were for 2004, when there were 3.5 million higher rate taxpayers. I think the working age population is currently around 40 million. So that would put all higher rate taxpayers in the top 9% at least. Maybe even the top 8% as the 3.5 million higher rate taxpayers includes some of pensionable age. In that respect, I think it's fair to describe higher rate taxpayers as top earners.

Of course there's a huge gulf between the top 0.5% (or so) and the remaining 8.5%.