Extra Money in Pay (Tax?)

[Raistlin]

Evening :)

I remember hearing (or possibly reading) somewhere that everybody was supposed to get an extra £60 or so back in their wages this month by way of some sort of tax refund and that they would then get an extra £10 or so for the next few months.

Could someone confirm this and clarify whether it's a one off payment or whether that's an additional amount that we will get every month?

In other words, will I get:

Wages + 60
Wages + 10
Wages + 10
etc.....

or

Wages + 60
Wages + 60 + 10
Wages + 60 + 10 + 10
etc.....

Thanks :)

[Pia]

I heard it's a total of £120, so you get £60 as a one off, then £10 a month after that!

[joglynne]

I think this (http://www.hmrc.gov.uk/comp/notes-11-5.pdf) is what you are thinking about. Paragraph 1. deals with Extra Personal Allowance for 2008-09The extra Personal Allowance is backdated to 6 April so monthly paid individuals should
see an increase in their September wages of around £60 followed by a £10 a month
increase for the rest of the year. Weekly paid individuals should see an increase in their
pay for the week commencing 7 September of around £53 followed by an increase in their
pay of about £2.30 a week. Individuals on a week 1 or month 1 code will only get a £2.30
a week or £10 a month increase for September. They will get the full increase once they
are back on a cumulative code or after the end of the year when we review their total
liability. Around 40 million individuals will be affected by the change

[Raistlin]

I heard it's a total of £120, so you get £60 as a one off, then £10 a month after that!

Ah right, thanks for that - thought it was too good to be true.....

[Pia]

Oh by the way, this is provided you earn less than £40,835 a year.

I earn about 1/1000 of that :D

---------- Post added at 18:56 ---------- Previous post was at 18:56 ----------

http://news.bbc.co.uk/1/hi/uk_politics/7397705.stm

He said it meant 22 million people on low and middle incomes would gain an additional £120 this year.
The money will come via a £60 lump sum in September pay packets, followed by a £10 monthly increase until the end of the year.

[Graham M]

£40/year what do you do Pia?! :p:

[Pia]

:D Well okay maybe i get a little more :shocked:

Minimum wage catches me up again soon i reckon :dozey:

[Raistlin]

I think this (http://www.hmrc.gov.uk/comp/notes-11-5.pdf) is what you are thinking about. Paragraph 1. deals with Extra Personal Allowance for 2008-09

Hmmm.....

That makes it sound like it's a permanent increase if they're increasing our personal allowances. So the amount of tax I pay should go down by 60 this month and then by another 10 next month and so on. In theory then in 6 months time I sould pay £120 less tax than I did on last month's wages. That just doesn't sound right.....

[Graham M]

I had a £60 rebate this month which was nice as it meant I didn't pay any tax at all, I was actually 60p better off :D

[joglynne]

As far I know you will receive, over the 2008-2009 tax year a total of £120 more in your wages. This is assuming that you are a basic tax payer earning less than £34,800 who has been in employment for the whole of the tax year.

You can check if the new tax code has been applied by comparing your August Code with your September code. 60 should be added to your previous tax code number in time for the first payday on or after 7 September. For example, old tax code 543L is now 603L.

[Halcyon]

Yep, I had £60 added this month too.
Any money extra is always a good thing :)

[tonycee]

Yep, I had £60 added this month too.
Any money extra is always a good thing :)

This 'extra £120' is only a refund of the £120 extra they charged us all when they scrapped the 10p lower tax rate in April this year !

In other words it's a 'U-turn' by the government

[Tezcatlipoca]

Bah! I was hoping it'd be an extra £60 *every* month.

Still, it was a nice surprise.