Average earners should feel better off
04 September 2008
The average earner in the UK will see a slight impact from the changes in personal tax allowances, it has been claimed.
Indeed the average earner should be marginally better off as a result of the changes, according to spokesperson for the Chartered Institute of Taxation (CIOT).
Chair of the management taxes committee at the CIOT, John Whiting, said that earners in the basic rate tax band will see a "slight impact in the pay packet".
"Essentially, anybody who is earning about £10,000 or more will now be ok, but there is still a cadre of people on £8,000 or £9,000 who will still overall lose out just a little bit," he said.
He added that consumers on such pay packets would lose out by around a pound a week, but added that this could be a significant amount to such a group.
Research conducted by the Institute of Fiscal Studies suggests that some 5.3 million families were left worse off by the abolition of the 10p tax rate. The organisation claimed around one in five consumers would lose out, two in five would gain and the remainder of people would be unaffected by the changes. 
