10% Tax Break

10% Tax Break
This was introduced to help Lower paid workers.
Let me explain how it worked.

After your tax allowance,say of £4000 you now pay 20% on the rest of your earnings.
With the 10% tax break the first £2000 after your allowance was taxed at 10%.
So say you earn £15000 per year which is common in Fleetwood and Lancaster.
Now you pay 20% Tax after your 4000 allownce,which is £2200 tax.
Under the 10% tax break system if you earned the same £15000.
After your £4000 tax allowance you only paid 10% on the next £2000.which is £200,and 20% on the rest you paid only £2000.
So you were £200 worse off.
Only when you earn £17000.do you become equal.

This affects all workers who earn under £17000 per year and this must include a lot of workers in Fleetwood and Lancaster It is another example of this Labour Government hitting low paid familieas