Increased personal allowance from September 2008
October 3rd, 2008
The personal allowance for all taxpayers has increased by £600 for 2007/08 to £6035 with effect from 7th September while the threshold for higher rate tax has decreased with effect from the same date.
This is in order to offset the effects of the abolition of the 10% tax band which took effect from the beginning of the tax year. Upper rate tax payers will not be affected by this change and most employees will receive a tax refund or pay a reduced amount of tax in their September salary. For taxpayers making payments on account it may be worth considering whether the increase in allowances will warrant a decrease in the payments on account for 2008/09, the first of which will be due on 31 January.
The content of this article is for general information only. It should not be relied on and action which could affect your business or personal circumstances should not be taken without appropriate professional advice.
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