UK Tax Rebate in simple figures
September 2008 - What is all this talk about UK tax rebates, and does it affect you?
- 5 million low paid workers were losing out due to the abolition of the 10p tax rebate - this is roughly classed as all those who earn less than £17,000 a year.
- The rebate is the Government saying they got it wrong (after intense political pressure) and attempting to recompense, at the cost of around £2.7 billion to the country.
- The tax rebate will be given in your next pay-slip, or next year if you’re self employed when you declare your taxes.
- The rebate was done by changing how much taxable income you are tax free on - increasing from £600 to £6035.
- There are still losers - those earning £8-10,000 were to lose £200 a year from the new tax laws - the rebate should give back £120 so they will still be losing £80 compared to pre-budget.
- People earning from circa £17,000 to £40,835 gain from the rebate, as they were better off before anyway under the 10p tax rate abolition and now get the rebate on top.
Is this fair? What would you have done?
Resources:
Use a salary calculator to work out how much you will pay.
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