2p of Income Tax, so am I better off?
Today’s announcement that 2p will be taken off Income Tax looks good, however the BBC report that I’ll also lose the 10p band, so some back of the fag packet (excel) calculations show.
Before (according to 2007/8 figures from HMRC)
Personal Allowance £5,225 = £0
10p rate £2,230 = £223.00
22p rate £8,545 = £1,87.90
Total tax = £2,102.90
Now (using 20p and no 10p rate)
Personal Allowance £5,225 = £0
20p rate £10,775 = £2,155.00
Total tax = £2,155.00
Difference £52.10 worse off.
Pushing the correct buttons on Excel manage to show that a salary of £18,605 would result in no change and anything more would result in a tax cut.
Edit - OK for the time being I’m actually better off, forgetting to add my Council Allowance to these figures.
Bookmark with: