personal tax allowance go up by £600 this year (only)

Chancellor Alistair Darling has changed the personal tax allowance by £600 in order to compensate the majority of those who were hit by the unintended effects of the April 2008 budget changes.

In fact the changes mean that anyone earning up to approximately £50K per year will gain £120 this year.  The scheme will only apply to this tax year.
It is unfortunate that those who gained from the initial legislation will gain more as a result of the changes but the important thing is that most, but not all, of those on lower incomes will now at least not lose out!

This will go some way to help those who are on benefits and lower wages with the increaes in food costs and fuel.

Tags: budget, income, tax