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Old 16th Jan 2010, 22:50
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Rover90
 
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Just to be clear

Just to be totally accurate and to avoid any misunderstanding:

On £1000 meal allowances:
35% is liable for taxation ie £350
and now 59% will be liable for taxation ie £590
Therefore £240 (£590 - £350) extra is now liable for taxation.
Assume a tax rate of 20% (it can be anything as it does not affect the percentage figure)
20% Tax on £350 = £70
20% Tax on £590 = £118
Still assuming the arbitary 20% Tax Rate, increase in Tax = £48 (£118 - £70)
So 48/70*100 = 68.5% increase in tax paid
In conclusion, there will be a 68.5% increase in tax paid on any MEAL allowances in Long Haul

Assuming that the new taxation liability level is 59%

Last edited by Rover90; 16th Jan 2010 at 23:37. Reason: just a thought
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