Moneymagpie.com believes increase in tax threshold may not be beneficial

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Moneymagpie.com believes increase in tax threshold may not be beneficial

Thu 24th Jun 2010

The increase in the tax threshold may not give parents as much additional income as they hope, according to one expert.

Assessing the figures from the recent emergency Budget, Jasmine Birtles, founder of Moneymagpie.com, said that the rise of the tax threshold would be seen as a postivie thing by many working class people in employment.

However, she explained that on the whole it may not be too beneficial to them due to the changes to child benefits and the rise in VAT.

"On the whole it is very much offset by the VAT hike and also the freezing of child benefits, which in effect will mean that the effectiveness of child benefits will actually go down," Ms Birtles explained.

The Budget, which was given by chancellor George Osborne, saw the announcement that child benefit will remain at the same level for the next three years but child tax credits will see an increase of £150 for households that earn under £40,000.

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