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Old 10th Mar 2010, 19:17
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Rover90
 
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Increased tax on meal allowances

Probably not a good time to mention the increased tax on those now admitted £1000pcm meal allowances.

Previously, 35% would have been taxable so:

£350 @ 40% higher rate/20% basic rate = £140/£70pcm respectively

And after the HMRC review and BASSA submission, the taxable element was raised to 59% so:

£590 @ 40% higher rate/20% basic rate = £236/£118pcm respectively

That equates to an actual increase in tax of £96/£48 pcm.

Reported in one communication from BASSA as "just a few pounds a month".
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