Quick question re the universal £60 tax rebate

Swainy78

This might well be a daft question, but here we go:

Will we have to pay tax on the £60 we're all supposed to be getting in this month's pay packet following the 10p-tax-band debacle?

I can't believe that you would have to, as it's essentially a tax rebate, but on the other hand, I wouldn't put it past them!!

Thanks

beecher

The BBC reports that we'll pay £60 less tax than normal, so it looks as if the £60 won't be added to our pay, but rather it won't be deducted as normal.

jimclark1967

The 'rebate' will work by increasing your personal tax free allowance this year by £600. At 20% basic rate tax this will be £120 less tax to pay for most people.

You should expect to pay £60 less tax in September then £10 a month less from October to March making £120 in total :beer:

JC

Swainy78

That's great - thanks Beecher, thanks Jim!

:beer: indeed!

newth

so prob being dumb here but if our tax code is supposed to change what would it be if low earner????

NoreenOMS

Hi, not sure if anyone could help ref this question- my husband gets paid weekly- and last week he received an extra £53, not £60. Does anyone know whether the £60 is supposed to be £60 to the exact penny? I wondered whether more will be received this week, but strange that might be split over more than a week, when the difference is only £7 (i know there is a further £10 per month to come for the next 6 months)

Thanks!

CLAPTON

the £60 is the figure for half year i.e. after 26 of weekly paid people... as your OH has only received 23 weeks pay he has received 23 weeks reduction ... he will now receive a reduction each week from now on ... in the full year will receive 120 reduction just like monthly paid workers

ruready

What happens then if your income is from 3 different sources?

I have two pensions and a part-time job. One pension and my part time job are taxed at 20%.

The larger pension has all my tax allowance set against it, and the surplus is then taxed. The monthly tax amount on this pension isn't £60, so how will they get round this so that I end up getting the full £120 in this tax year? Any ideas?

Thanks if you can help!

NoreenOMS

Fantatic, thanks for the reply Clapton, much appreciated. Just so I am clear, ref the 23 weeks pay, are we not into week 38 of the year? Or is this not a calender year but a financial year?

Thanks again,

CLAPTON

NoreenOMS wrote: »

Fantatic, thanks for the reply Clapton, much appreciated. Just so I am clear, ref the 23 weeks pay, are we not into week 38 of the year? Or is this not a calender year but a financial year?

Thanks again,

financial year.....

CLAPTON

ruready wrote: »

What happens then if your income is from 3 different sources?

I have two pensions and a part-time job. One pension and my part time job are taxed at 20%.

The larger pension has all my tax allowance set against it, and the surplus is then taxed. The monthly tax amount on this pension isn't £60, so how will they get round this so that I end up getting the full £120 in this tax year? Any ideas?

Thanks if you can help!

if your have a tax code ending with L then that will be increased by 60 giving you a reduction of tax for the half year of 600/2 x 20% i.e. £60 ... if you don't pay 60 per month then you will get an actual refund ... then each month you get a reduction of £10

BR codes don't change