Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • Former MSE Helen
    • By Former MSE Helen 5th Dec 12, 6:23 PM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: Autumn Statement: Tax boost for lower income earners
    • #1
    • 5th Dec 12, 6:23 PM
    MSE News: Autumn Statement: Tax boost for lower income earners 5th Dec 12 at 6:23 PM
    Those on lower incomes will pay less tax from next year, but higher rate payers face a rise...

    Read the full story:

Page 1
    • Stochasticity
    • By Stochasticity 5th Dec 12, 7:24 PM
    • 1,692 Posts
    • 1,377 Thanks
    • #2
    • 5th Dec 12, 7:24 PM
    • #2
    • 5th Dec 12, 7:24 PM
    Those born before 6 April 1948 will keep the same personal allowance of £10,500 if born between 6 April 1938 and 5 April 1948, and £10,660 if born before 5 April 1938.

    Therefore, they will pay the same amount of tax next year as they do now, assuming the same income. If their income rises, they pay more tax, making this an effective tax rise.
    Same rates, same thresholds, where's the tax rise? Perhaps in real terms, but you're talking very small amounts, and the anomaly will be gone within a year or two once the thresholds align.

    Higher rate taxpayers will not gain as their tax bill will rise next year.
    Not entirely true. The higher rate threshold will reduce from £42,475 to £41,450, but this had already been announced. Most higher rate taxpayers will benefit from the additional £235 increase in the personal allowance, which was the new development today.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,690Posts Today

6,684Users online

Martin's Twitter
  • Just changed my profile description. Wish I was cool and brave enough to go for one of those really short ones!

  • Happy with my 15k time today, one of my fastest 1:18:56. Managing to keep up my 150k a month target.

  • That's why I'm asking question. To see whether people perceive they are or aren't.

  • Follow Martin