Gordon Brown announced £120 tax re-bate, who gets it?

Question

In September 2008 basic tax rate payers will receive an extra £60 in their pay packets followed by 6 further instalments of £10 in their monthly salaries. What I need to know is what is the salary threshold for people entitled to this rebate?

Answer 1

Anyone who earns more than the personal allowance (£5,435) will benefit to some extent.  Those earning over £6,035 will gain the full amount providing they are not a higher rate taxpayer.

Answer 2

Basically, the personal allowance is being increased from 5035 to 6035 on 7 September 2008. Therefore, you will only notice a difference in your pay if you are a basic rate taxpayer. If you are higher rate and are taxed at the 40 percent level, then it will make no difference to you.

20 percent on first 36000 and 40 percent on anything over that.

In September, 20 percent on first 34800 and 40 percent on anything over that.

http://www.hmrc.gov.uk/employers/epa-und...