this 10p tax issue.....

james3333

can anyone explain ( very simply) what its about.
iam 30 years old, single, no kids, with mortgage earning £27k
how will i be affected?

steveandel

You'll be slightly better off than before. They have taken away the first band of income tax which used to be 10%. They have then reduced the second tier from 22% to 20%. This means that generally if you earn under about £18.5k with no kids etc you'll be slighty worse off than before.

james3333

so, instead of getting taxed 22% i will get taxed 20% on my salary?

fengirl_2

Yes, you will pay 20% tax instead of 22%

Oliver27

In other words those on lower incomes will suffer,
while those on higher incomes will benefit.

vix2000

surprise surprise

Daz1

james3333 wrote: »

so, instead of getting taxed 22% i will get taxed 20% on my salary?

Correct, but NI contributions have gone up too so its not a straight 2% discount on your tax bill!!!

jackieb

Did Gordon Brown think this one through?

tigtag02

Daz1 wrote: »

Correct, but NI contributions have gone up too so its not a straight 2% discount on your tax bill!!!

At last someone has factored this in, this and the fact that you have an extra £210 free pay a year.

I earn £16k and I'll be £1.22 a month better off so the £18.5k being quoted is incorrect.

vix2000

tigtag02 wrote: »

I'll be £1.22 a month better off

don't spend it all at once:rotfl:

Daz1

tigtag02 wrote: »

At last someone has factored this in, this and the fact that you have an extra £210 free pay a year.

I earn £16k and I'll be £1.22 a month better off so the £18.5k being quoted is incorrect.

I was overjoyed at the prospect of taking home some extra cash and thought Mr Brown was being kind.....until I read about the other changes :mad:

Suppose I should have known better....