 |
|
|
|
|
|
Business news : August 2008
One-Off Increase To Pay Packets
North Wales based Chartered Accountants Gareth Hughes and Co are informing individuals about the one-off increase in their monthly salaries, due to be seen in September or October.
HM Revenue and Customs have announced the effects of changes to personal allowances, which they have increased by means of compensation for the abolition of the 10p tax rate. The personal allowance refers to earnings before they are subject to income tax at 20%.
The changes will come into effect on 7th September 2008, but will be backdated to 6th April 2008. The personal allowance increases by £600 to £6035, which equates to a tax saving of £120 over the course of the tax year. The basic rate band has been reduced by £1200 to £34,800.
Employees with a monthly paydate on or after 7th September will see a £60 reduction in their tax paid that month. If a September paydate falls before the 7th they will see a £70 reduction in their October tax.
Gareth Hughes comments: “This £60 or £70 increase in earnings that people will see will be a nice bonus, but employees should remember it is a one-off payment before they change their spending habits. After this, monthly-paid employees will see up to £10 less tax deducted from them, with weekly paid employees noticing a £2.30 difference. This is until April 2009, when things may yet again change.”
For more information contact Gareth Hughes and Co on 01492 593345
To find out more about how we can help you, or to arrange a free initial meeting, please contact us.
 |
Gareth Hughes & Co - North Wales Accountants |