Quote: cod'ead "No, you'll be 20% of £650 a year better off, or £130. But how much better off anyone will be depends on what you earn. He intends to lower the higher rate threshold to £41,865 so 40% taxpayers will only be £83 a year better off.
He's also tapering off the personal allowance for those on £100k at a rate of £1 for every £2 above £100k, so at £120k there'll be no personal allowance at all.
We've yet to see if he's dragging anything back in increased NI contributions'"
I got a C at GCSE maths and have never given it any serious thought since. My trail of thought is as follows:
Tax is roughly 20%. So the tax they would have taken on that £3000 is about £600.
By not taking tax on that £3000 the average tax payer is thus £600 better off, no?
If you disagree please explain why and show working (as they would say in exams)
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