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| Additional Personal Allowances |
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As from 7th September 2008 the increase in personal allowances from £5,435 to £6,035 will mean that the majority of basic rate taxpayers will be better off by £120 for the current tax year. Higher rate tax payers will not be better off following the increase in personal allowances because there is a corresponding reduction in the point at which higher rate tax payers start paying tax at 40%.
Employers - Please click here for further guidance, as you will need to change your employees' tax codes ..
www.hmrc.gov.uk
Employees - Please click here for more details ..
www.hmrc.gov.uk
Directors - Please note that if you are trading as a limited company and receiving directors fees, your fees will NOT be increased. This is because although the personal allowances have increased, unfortunately the National Insurance rates have not.
Please get in touch if you have any queries.
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