I wouldn't have minded the loss of the lower rate if the personal allowance had been increased. There are too many people on low earnings who are paying tax.
For 2008-09 the personal allowance for anyone under 65 is £5435 so if you are employed and earning £10000 a year you're going to pay tax at 20% on £4565. Of course you may be able to claim Tax Credits but, if you think about it, isn't that farcical, taking it off you while giving it back?
A personal allowance of at least £10000 would cut out the need for Working Tax Credit and make take-home pay more realistic and less open to errors.
(I don't know why I'm still bothered. I retired from it all last September.
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