Personal Tax Allowances up £600

Small Business News

After abolishing the 10p tax rate in the Budget 2008, Alistair Darling has made a concession to low earners.

At a cost of £2.7 billion, the chancellor of the exchequer has increased the personal tax allowance by £600 to £6035 for this financial year.

The move, benefiting all basic rate tax-payers under the age of 65, will see 22 million low and middle income earners be £120 better off this year, as "compensation" for the scrapping of the 10px tax rate.

The additional £120 is expected to be paid in a £60 rebate in September with £10 extra in workers' paypackets until the end of the tax year.