Partner Article

Self-employed wait for tax rebate

The UK’s self-employed are looking on this month as basic rate taxpayers - about 22 million people - receive an additional £60 in their pay packets.

Courtesy of the government, the tax rebate is designed to make up for Alistair Darling’s decision to abandon the 10p tax band.

Following concern that the chancellor’s move would hit the hardest up, he raised the personal tax allowance by £600 to £6,035 for all except higher-rate taxpayers.

Basic rate taxpayers will see the benefits this month, with £60 added to their take-home pay, with £10 a month following for the rest of this tax year. However, self-employed taxpayers, as well as those over 65, will not feel the benefit until they start paying tax from January.

“A twin-track treatment seems to apply, depending on what sort of taxpayer you are,” said Matt Coward of London chartered accountants Blick Rothenberg. “Because the self employed calculate their tax after the end of the tax year they don’t get the relief until 31st of January 2010.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .