MSE News: Budget 2013: Personal tax allowance

socks_uk

I know this budget personal tax allowance announcement is for April 2014 but can someone clarify something?

I think at the moment (March 2013) we are still on £8,105 tax allowance, from April 2013 we should be on £9,205 and April 2014 it will be £10,000?

So, will my wage packet be £91.66 more per month from next payday or have I got it totally wrong? I need help!

http://www.hmrc.gov.uk/budget2012/income-tax-rates.htm

jem16

socks_uk wrote: »

So, will my wage packet be £91.66 more per month from next payday or have I got it totally wrong? I need help!

You've got it wrong. That would be the extra allowance, not the extra amount you would actually get.

Next tax year the allowance is £9400 (not £9205) so minus £8105 and you have an extra allowance of £1295. Tax on this would be £259pa so £21.58pm extra you should get.

kidmugsy

Anarchist wrote: »

... me, a regular, average, single, skilled worker ...

I'm now a higher rate tax payer

If you pay higher rate tax you are not average.

Dazed_and_confused

jem16 wrote: »

You've got it wrong. That would be the extra allowance, not the extra amount you would actually get.

Next tax year the allowance is £9400 (not £9205) so minus £8105 and you have an extra allowance of £1295. Tax on this would be £259pa so £21.58pm extra you should get.

Personal Allowance next year is £9440

socks_uk

jem16 wrote: »

You've got it wrong. That would be the extra allowance, not the extra amount you would actually get.

Next tax year the allowance is £9400 (not £9205) so minus £8105 and you have an extra allowance of £1295. Tax on this would be £259pa so £21.58pm extra you should get.

Ah! Thank you! And that is why I'm not an accountant! Anything will make me feel like I'm no longer on a pay freeze!

jem16

Dazed_and_confused wrote: »

Personal Allowance next year is £9440

Oops - yes you're correct so it will be £22.25 extra (assuming you don't go into higher rate tax)

socks_uk

Taken from the link I posted above...

For 2013-14 the personal allowance for those aged under 65 will be set at £9,205 and the basic rate limit at £32,245. The Class 1 Upper Earnings Limit and the Class 4 Upper Profits Limit for National Insurance contributions will be aligned with the point at which the higher rate tax becomes payable (£41,450).

So how did £9,205 then become £9,440?

jem16

socks_uk wrote: »

So how did £9,205 then become £9,440?

That was announced in the Budget 2011 - superceded by Budget 2012.

GazHatesBanks

The result, according to the Government, will see a typical basic rate taxpayer pay £705 less in income tax from April 2014.

Compared to when? When they came into power maybe but not compared to today which is what is important to everyone else.

To save £705 per year in tax you would need to increase the allowance by £3,525.

Looks like MSE has also been taken in by this spin:mad:

nodiscount

Some people are never happy! If we had a labour government income tax would be at least 25% by now with freezes on the tax-free allowances.

Stop moaning!