Tax rebates 'to come in paycheques this month'

01/09/2008

All Britons on the old 22p and 10p tax bands are to receive a rebate in this month's pay cheques.

Under new government legislation coming in to effect on September 7th, a £60 lump sum is to be given to the 22 million taxpayers, with further £10 payments to come in each of the remaining six months of the financial year.

This comes following chancellor of the exchequer Alistair Darling's apparent u-turn on tax policy.

The government's previous plan was to merge the 22p and 10p tax bands into a new 20p band.

However, this caused a public outcry and a backbench revolt - with many complaining that some of Britain's lowest earners, who previously paid the 10p tax, had effectively had their burdens doubled.

In response, the chancellor raised the personal allowance - or the amount which someone can earn in a year without getting taxed for it - by £600 to £6,305.

This move has resulted in the £120 rebates.

Tags; Current UK Economy,

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