robovski:
Is this in addition to the reduction to 20% from 22% or instead of?
its in addition but will probably only be for 1 year.
it was made after the governments totally farcical decision to abolish the 10% tax band not realising it would mean the lowest paid being worse off despite the government having a whole year to do the sums!
So, now they bribe the public by paying the tax rebate to
everyone thus the lowest paid are not paying more tax and the rich pay even less tax
You couldnt make it up.
Expect round 2 of this sorry saga to continue next April as Darling cannot afford to do this indefinitely as we have a nationalised bank and its losses to support now (Northern Rock!).