Tax tax blah blah blah. It's not often that it's worth paying all that much attention to jibbery Government statements on tax and the like, but now and then it's something to get excited about. The Poorhouse has nothing against tax as a concept, being a great fan of at least some variants of the welfare state, but the amount of money squandered away into pointless, even harmful, stuff by Governments is something of a deterrent to the joy of giving. So it's nice to get a brucie-bonus back.

This month, gang, if you (as a UK worker) earn between £6035 and £40835 per year, check for a bonus £60 in your wages! Whoo!

Whyso? You'll remember the 10p tax scandal a while ago? Well, rather than bin it for the nonsense it was - after all that would admit some sort of mistake - the Government is raising the amount of income you're allowed to get without paying by a few hundred quid. The effect of this is that everyone who pays basic rate tax is going to be £120 richer, and as we're already half way through the year, £60 of that should be in the September pay packet. And then £10 a month up to April 09, the start of the new financial year - if money even exists at that point.

Yes, that's everyone, whether or not the 10p abolishment hurt or not. According to the fabulous moneysavingexpert, that means that the 10p band removal won't hurt anyone, except those earning between £7130 and £9075. So wonderful news for those earning say £35,000 a year, but less than those who struggle to make ends meet earning only £8k a year as banks go bust and the cost of living spirals ever more upwards.

Oh well, the Poorhouse sees it's an improvement, but really, putting the 10p band back or some such equivalent where it was mightn't be so bad.

As it's that you're paying less tax on your earnings, rather than earning more in the first place, your employer should sort this all out for you behind the scenes. You should note that you probably have a new tax code, and have £60 more net wages. If you don't, then now might be a good time to take a big stick around to the finance department. Get what you're supposed to; it doesn't cost your employer any more than usual. The Poorhouse is a little amazed that a certain employer or two haven't tried to spin this into being an ever so extravagant £60 free gift from the company, based on past events, but so far so honest as far as he knows...

Those on higher rate tax (£40385+ per year) won't really see a change: the benefit of this is compensated for by the loss in lowering the threshold of higher rate tax down by £600. Still, if you earn that much, you should be able to get by really for a bit, even with the financial messes going on all around the place.

Here's the official word on the subject from HM Revenue and Customs.