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10p tax change

hi all,
new to this forum, so be nice to me lol
i work part time, and my average salary is 4.5k p/a.
i know from april the 10% tax is being removed and 20% introduced. i just have been thinking if i done some O/T say perhaps a grands worth, and takes me into the tax threshold , is it gonna be worth my while, i mean could i end up being worse off and have to do more O/T to break even. is this tax change going to make part timers worse off, i know that normal earners will be slightly worse off. ive not heard anything about it since annouced last yr
cheers for any advice
kind regards mel

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    currently you can earn 5225 per annum before any tax is due.
    however we dont yet know the new figure for 2008 so it isn't possible to see the precise effect of cancelling th 10% band
  • dunstonh
    dunstonh Posts: 120,933 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You will be better off even if you are into the tax band as you only pay 20% on the income that is above the personal allowance. Not the whole amount.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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