MSE News: Budget 2013: Personal tax allowance

Former_MSE_Helen

"Many workers will pay less in tax from next year but we await full details for higher earners..."

Read the full story:

Budget 2013: Personal tax allowance



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richardw

How much extra are the lower paid paying in VAT?

Is it a real win?

kezbabybabe

This news does make me happy. More of my earnings coming my way to help me with my future.

Toasted_Cheese

Yay! at least some good news with tax free allowances going up! £10,400 is the next goal IMO giving everyone the right to earn £200 a week tax free

Reaper

As neither MSE nor the BBC seem to be saying what happens to basic/higher rate income tax payers yet I have dived into the budget document and retrieved it for you.

2.34 Income tax: personal allowance in 2014-15 – The Government will increase the
income tax personal allowance to £10,000 in 2014-15. The basic rate limit will decrease to
£31,865 in line with the Autumn Statement 2012 decision to increase the higher rate threshold
by 1 per cent to £41,865. (Finance Bill 2014) (41) The personal allowance will then be increased
by CPI from 2015-16.

EDIT: I see the MSE article has been updated with the figures now

Ximian

Some additional info:

Personal tax and welfare
Income tax and National Insurance contributions

2.33 Income tax: personal allowance in 2013-14
– As announced at Autumn Statement
2012, from April 2013 the income tax personal allowance will be increased to £9,440. The basic rate limit will be £32,010. The higher rate threshold will be £41,450 in 2013-14. The National
Insurance upper earnings/profits limit will also be reduced to align it with the higher rate threshold. (Finance Bill 2013) (g)

2.34 Income tax: personal allowance in 2014-15
– The Government will increase the
income tax personal allowance to £10,000 in 2014-15. The basic rate limit will decrease to £31,865 in line with the Autumn Statement 2012 decision to increase the higher rate threshold by 1 per cent to £41,865. (Finance Bill 2014) (41) The personal allowance will then be increased
by CPI from 2015-16.

2.35 Income tax rates
– The basic and higher rates of income tax for 2013-14 will remain at
their 2012-13 levels. As announced at Budget 2012 and legislated for in Finance Act 2012, the additional rate of income tax will be reduced from 50 per cent to 45 per cent from 2013-14.

Steve059

Will the HMRC's computer system be able to cope with a 5-digit tax code of 1000L? If not, they only have a year to fix it.

JimmyTheWig

Steve059 wrote: »

Will the HMRC's computer system be able to cope with a 5-digit tax code of 1000L? If not, they only have a year to fix it.

There must already be people on such a tax code - e.g. those who have overpaid in recent years. I would have thought.

Anarchist

Great.

Just when I thought there would be some chance that there would actually be a budget policy that benefits me, a regular, average, single, skilled worker, it turns out there isnt.

The reduction has pushed my earnings over the basic tax threshold. I'm now a higher rate tax payer, and have benefitted in no way whatsoever.

waiax73

Cool! A little income bump beginning next month:)

jellyhead

Anarchist wrote: »

Great.

Just when I thought there would be some chance that there would actually be a budget policy that benefits me, a regular, average, single, skilled worker, it turns out there isnt.

The reduction has pushed my earnings over the basic tax threshold. I'm now a higher rate tax payer, and have benefitted in no way whatsoever.

Will you pass less tax on the first part of your wages though?