with the tax rate set to go down to 20% and the 10% rate being abolished. What would you have to been earning?

Question

to make yourself better off? Will medium rate earners be worse off?

Answer 1

Think we've been shafted.

I worked out that, on just over 20 grand a year, I'll be a couple of hundred quid a year worse off, yet my manager who earns double my salary, will be a couple of grand better off, because of the hike in the level of the 40% tax band (up from 38k to 43k).

I always thought Golden Brown supported the lower paid, but I've had my eyes opened to the slimy git.

Answer 2

The old system was and will be until April next year..
Personal allowance...the amount you can earn before paying any tax.
Then lower tax threshhold...the next £2,150 taxed at 10%.
Everything above that to £38,000 or so is taxed at 22%.

The new system means 20% tax will be paid on all earnings over your personal allowance to £43,000 then upper tax applies.
The thing here is..did he increase the personal allowances.??
If he did , then its not so bad, if he did not..then we have all been shafted again.