The 2008 UK Budget and its Implications

During the Budget delivery this year, the Chancellor announced changes to the Tax Free Allowance and tax rates that will have an effect on almost everyone. These changes took place on the 7th September 2008 and were backdated to the 6th April 2008.

Personal Allowance increased from £5225 to £5435 to £6035.

The initial 10% Starting Tax Rate was done away with.

On earnings up to and including £34,800 the basic rate has dropped from 22% to 20%.

On earnings over £34,800 the higher rate is 40%.

The changes outlined by the Chancellor will result in most individuals requiring changes made to their tax codes, resulting in many employees being entitled to a tax refund on tax already paid up to the 7th September. This also means that these employees will have less tax to pay for the remainder of the tax year. Invariably many employers won’t take this into account when calculating the PAYE contributions on salaries, and therefore at the end of the 2008/2009 tax year there will be many people working through PAYE, CIS and Limited Companies who will be due refunds from their overpayments during the year.

Contact claimtax@claimtax.co.uk to see whether you are one of them. Alternatively go to the Downloads page to complete a questionnaire.

How Taxes Work

Tax Refunds for Travellers

Student Tax

Tax Refunds for the Unemployed

Income Tax Rebate for Mothers

Why Owing the IR Isn’t as Bad as it Sounds

The 2008 UK Budget and its Implications

Income Tax Rates