Darling says:
Quote:
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Originally Posted by Eyebrows man
However, as the £600 increased personal allowance applies not just to basic rate taxpayers but also to those paying tax at a higher rate, I am therefore reducing the threshold at which an individual starts to pay tax at the higher rate by £600.
The net effect of these changes is that the tax liability of everyone that currently pays tax at 40 per cent will be unaffected by the increase in the personal allowance.
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My calculations for as an example, a £100k salary are (Ignoring NI) --
OLD Personal Allowance of £5,435:
Gross - £100,000
Taxable - £94,565
20% Tax up to £36k - £7,200
40% Tax from £36k - £23,426
Total Tax - £30,626
NET - £69,374
NEW Personal Allowance of £6,035:
Gross - £100,000
Taxable - £93,965
20% Tax up to £35.4k - £7,080
40% Tax from £35.4k - £23,426
Total Tax - £30,506
NET - £69,494
i.e. you're £120 better off...
Has Darling fliped up AGAIN? Or am I a numpty??