There's an article on the BBC website:

http://news.bbc.co.uk/1/hi/business/7590870.stm

about the 60GBP refund for (some) tax payers this month to compensate
for the 10% band going.

But there's one bit I don't get:

"Self-employed taxpayers will not feel the benefit until they start
paying tax from January 2009."

Surely self-employed taxpayers have been getting the benefit from the
instant it was originally announced. They've had to put less tax aside
to pay the tax bill than they would otherwise have needed to do.

I could understand if it said January 2010 - because the payments on
account are calculated based on last years profit. I've no idea what
happens to that calculation if the basic allowance changes like this
one has. Are all payments on account recalculated or does it "wash" in
the balancing payment in Jan 2010?

Tim.

wrote in message 
news:2c7bb9a1-fc36-4548-b398-a620843ce188@m36g2000hse.googlegroups.com...
> There's an article on the BBC website:
>
> http://news.bbc.co.uk/1/hi/business/7590870.stm
>
> about the 60GBP refund for (some) tax payers this month to compensate
> for the 10% band going.
>
> But there's one bit I don't get:
>
> "Self-employed taxpayers will not feel the benefit until they start
> paying tax from January 2009."
>
> Surely self-employed taxpayers have been getting the benefit from the
> instant it was originally announced. They've had to put less tax aside
> to pay the tax bill than they would otherwise have needed to do.
>
> I could understand if it said January 2010 - because the payments on
> account are calculated based on last years profit. I've no idea what
> happens to that calculation if the basic allowance changes like this
> one has. Are all payments on account recalculated or does it "wash" in
> the balancing payment in Jan 2010?
>
> Tim.

For some tax-payers, the change could enable, or enhance, a reduction in the 
POAs due on 31/1/09 and 31/7/09.


-- 
Martin

On Mon, 01 Sep 2008 13:26:02 GMT,
    Martin  wrote:
>
> wrote in message 
> news:2c7bb9a1-fc36-4548-b398-a620843ce188@m36g2000hse.googlegroups.com...
>> There's an article on the BBC website:
>>
>> http://news.bbc.co.uk/1/hi/business/7590870.stm
>>
>> about the 60GBP refund for (some) tax payers this month to compensate
>> for the 10% band going.
>>
>> But there's one bit I don't get:
>>
>> "Self-employed taxpayers will not feel the benefit until they start
>> paying tax from January 2009."
>>
>> Surely self-employed taxpayers have been getting the benefit from the
>> instant it was originally announced. They've had to put less tax aside
>> to pay the tax bill than they would otherwise have needed to do.
>>
>> I could understand if it said January 2010 - because the payments on
>> account are calculated based on last years profit. I've no idea what
>> happens to that calculation if the basic allowance changes like this
>> one has. Are all payments on account recalculated or does it "wash" in
>> the balancing payment in Jan 2010?
>>
>> Tim.
>
> For some tax-payers, the change could enable, or enhance, a reduction in the 
> POAs due on 31/1/09 and 31/7/09.
>
Thanks. So in the absence of the taxpayer doing anything to request a
reduction of their POAs, self employed taxpayers will feel the benefit
when they make their balancing payment in January 2010. That makes
sense.

Tim.

-- 
God said, "div D = rho, div B = 0, curl E = - @B/@t, curl H = J + @D/@t," 
and there was light.

  http://www.woodall.me.uk/    http://www.locofungus.btinternet.co.uk/

google@woodall.me.uk wrote:

> Surely self-employed taxpayers have been getting the benefit from the
> instant it was originally announced. They've had to put less tax aside
> to pay the tax bill than they would otherwise have needed to do.
> 
> I could understand if it said January 2010 - because the payments on
> account are calculated based on last years profit. I've no idea what
> happens to that calculation if the basic allowance changes like this
> one has. Are all payments on account recalculated or does it "wash" in
> the balancing payment in Jan 2010?

Payments on account are calculated based on last year's tax bill.  The basic
allowance changes by a little bit every year (except one year when it was
frozen), and the POAs are never adjusted for it.