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MSE News: Autumn Statement: Tax boost for lower income earners

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MSE News: Autumn Statement: Tax boost for lower income earners

edited 30 November -1 at 1:00AM in Cutting Tax
1 reply 1.6K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 30 November -1 at 1:00AM in Cutting Tax
Those on lower incomes will pay less tax from next year, but higher rate payers face a rise...
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  • 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.
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