Welcome to the Weatherer Bailey Bragg Website, we hope you enjoy your visit ...... Meet the Weatherer Bailey Bragg Team ...... We are registered auditors under the Companies Act Click Here for details ...... We offer monthly or quarterly management accounts ...... We have a range of services to help you cope with Corporate Tax Legislation ...... We are specialists in dealing with HM Revenue & Customs Aspect Enquiries, Full Tax Investigations and Special Civil Investigations Office Click Here for details ...... View our cost effective VAT Service ......

Extra Personal Allowances

August 2008

HMRC have now issued further guidance on the increase in the personal tax allowance which is due to take effect from 7 September 2008. 

The guidance is aimed at both employers and employees. Although the increase takes effect for pay dates from 7 September onwards the change will effectively be backdated for the majority of individuals until the beginning of the tax year.

As has been widely reported the increase in personal allowances from £5,435 to £6,035 will mean that the majority of basic rate taxpayers will be £120 better off for the current tax year. The increase is designed to compensate those tax payers who were worse off following the removal of the 10% starting rate of tax from non-savings income. Higher rate taxpayers will not be better off following the increase in personal allowances due to a corresponding reduction in the point at which taxpayers start paying the higher rate of tax of 40%.

Please get in touch if you require any clarification of the new rules.

Internet Links: HMRC guidance Employee guidance and Employer guidance