A tax windfall will find its way into many wage packets this month - providing a small but much needed boost to the economy both in Kent and nationwide.

The boost, a throwback from a Treasury announcement in May, will see basic rate taxpayers taxed on a "pay as you earn" basis having September wage packets increase by at least £60.

The rise in after-tax pay is a result of an increase in the basic rate personal allowance announced in May to compensate for the abolition of the 10 pence rate of tax earlier this year.

As the increased threshold applies to the entire tax year, but has been introduced half way through it, basic rate taxpayers will receive a lump sum of £60 in their September wages. They will then see their net pay increase by £10 per month for the rest of the tax year.

Any basic rate taxpayers who are paid their September salary before 7 September, will receive an extra payment of £70 in their October payslip and then £10 per month extra from then on.

Brian Jackson, head of tax for south-east based accountants KPMG, said: "For many households feeling the pinch, a £60 windfall will be very welcome. And an extra £10 a month thereafter is helpful, too.

"However, how long basic rate taxpayers will remain 'in the money' will depend on what measures are unveiled in the pre-budget report and with the Treasury's coffers looking bare, it's quite possible that rebates given today may be clawed back in other measures."

The basic rate personal allowance will increase by £600 from £5,435 to £6,035 on 7 September. This increase equates to a tax saving of £120 per year.