Tax free allowance 2014-15

Lucy2111

Hi All
I have a query regarding the new tax free allowance of £10k per annum in 2014-15, which is an increase of £560 or £46 a month ( on 2013-14 tax free allowance of £9,440), but when i calculate my take home salary using online calulators my take home pay is only increasing by approx £10 a month. Why is this?
Any advice greatly appreciated
Thanks
Lucy

chrismac1

It's a tax-free allowance, so saves tax at 20%.

So it should be 560 / 12 * 20% = £9.33 per month less.

Lucy2111

Thanks, so the polictical stance of getting an extra £40 in my back pocket is just spin and you only get the full allowance if you earn less or exactly £10k a year

CLAPTON

Lucy2111 wrote: »

Thanks, so the polictical stance of getting an extra £40 in my back pocket is just spin and you only get the full allowance if you earn less or exactly £10k a year

no one said you get an extra 540 pa in your paypacket: they said the tax free allowance was increased by 540


last year you would, on the 540, have paid 20% tax i.e. £112 and retained £428 to spend

this year you retain all the 540