rise in tax allowance from Sept

laurenzo99

I have read that an individuals tax free allowance is being raised in September.

My question is how the increase will work if your tax code is split between jobs?

Many thanks

jem16

Just the same as if it wasn't split. Instead of £5435 being split, £6035 will be split.

laurenzo99

will it just be split automatically (by percentage terms) between the 3 jobs i have my codes split accross

jimmo

No. One of your current codes should have an L suffix and the other a T.

The L suffix will be increased by the full amount.

laurenzo99

ok thank you- that is correct as one tax code ends L and other 2 end in T.

Thank you for clearing that up for me

stphnstevey

Why is it being raised - is the 10p thing?

jem16

There was such a big outcry at the removal of the 10% tax band that the Chancellor was forced to do something.

stphnstevey

jem16 wrote: »

There was such a big outcry at the removal of the 10% tax band that the Chancellor was forced to do something.

And that is?

jem16

stphnstevey wrote: »

And that is?

Sorry I thought you realised from the title of the thread.

The Chancellor has raised the basic personal allowance for those under 65 from £5435 to £6035 with effect from September. At the same time the higher rate threshold was reduced from £36,000 to £34,800 so that higher rate taxpayers would not gain from it.

stphnstevey

Thanks Jem - might be good for me as I only pay myself the personal tax allowance from my Ltd, so means more out tax free!