Personal Allowance Freeze

Graywisdom

I see in The Telegraph that Sunak (or should I say The Treasury) are considering freezing the Personal Allowance to help 'balance the books' after the Government's spending on Covid19. What amazes me is that projects such has HS2, whose costs will eventually be over £102billion, are still going ahead. Not only is there the ridiculous overspend on the project, but also there is the blight that has been forced on peoples propeties and lives. So the freeze would not be to recupe money spent (and wasted in some cases) on Covid19, but just to be able to give more monies to grandiose, and unnecessary, schemes such as HS2. Hands up all those (out of the total population of England) who are going to be using this service just to save 25-30 minutes on their journey. They will probably wait longer in a queue (post Covid) at Costa to get a cup of coffee!!

[Deleted User]

I am more annoyed at the trivial increases in the personal allowance (12500 to 12570) and basic rate band (37500 to 37700) which means that earnings above 50270 are taxed at 40%. Just when we had become accustomed to nice round number!

Jeremy535897

If that is the inflation adjusted number that they have to calculate, and which automatically applies unless a different figure is put into legislation, I doubt it will survive.

[Deleted User]

Jeremy535897 said:

If that is the inflation adjusted number that they have to calculate, and which automatically applies unless a different figure is put into legislation, I doubt it will survive.

It’s in my code for 21/22! 

jimmo

[Deleted User] said:

Jeremy535897 said:

If that is the inflation adjusted number that they have to calculate, and which automatically applies unless a different figure is put into legislation, I doubt it will survive.

It’s in my code for 21/22! 

And mine.

Jeremy535897

England and Northern Ireland

PAYE tax rates and thresholds	2021 to 2022
Employee personal allowance	£242 per week £1,048 per month £12,570 per year
English and Northern Irish basic tax rate	20% on annual earnings above the PAYE tax threshold and up to £37,700
English and Northern Irish higher tax rate	40% on annual earnings from £37,701 to £150,000
English and Northern Irish additional tax rate	45% on annual earnings above £150,000

Income Tax rates and thresholds are subject to confirmation at the budget.

From https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2021-to-2022

I am sceptical that such confirmation will be forthcoming.

[Deleted User]

Jeremy535897 said:

England and Northern Ireland

PAYE tax rates and thresholds	2021 to 2022
Employee personal allowance	£242 per week £1,048 per month £12,570 per year
English and Northern Irish basic tax rate	20% on annual earnings above the PAYE tax threshold and up to £37,700
English and Northern Irish higher tax rate	40% on annual earnings from £37,701 to £150,000
English and Northern Irish additional tax rate	45% on annual earnings above £150,000

Income Tax rates and thresholds are subject to confirmation at the budget.

From https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2021-to-2022

I am sceptical that such confirmation will be forthcoming.

I will wager you my monthly increase on net income.🤔

Grumpy_chap

Speculation about the budget is futile.  However, a freeze on income tax bands would not be the worst that could be done.  

[Deleted User]

Grumpy_chap said:

Speculation about the budget is futile.  However, a freeze on income tax bands would not be the worst that could be done.  

Agreed! More politically sensitive though - ‘ despite this that and the other we have been able to take an additional x amount of the population out of taxation altogether’. 

Jeremy535897

[Deleted User] said:

Jeremy535897 said:

England and Northern Ireland

PAYE tax rates and thresholds	2021 to 2022
Employee personal allowance	£242 per week £1,048 per month £12,570 per year
English and Northern Irish basic tax rate	20% on annual earnings above the PAYE tax threshold and up to £37,700
English and Northern Irish higher tax rate	40% on annual earnings from £37,701 to £150,000
English and Northern Irish additional tax rate	45% on annual earnings above £150,000

Income Tax rates and thresholds are subject to confirmation at the budget.

From https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2021-to-2022

I am sceptical that such confirmation will be forthcoming.

I will wager you my monthly increase on net income.🤔

I never bet on anything.

[Deleted User]

Jeremy535897 said:

[Deleted User] said:

Jeremy535897 said:

England and Northern Ireland

PAYE tax rates and thresholds	2021 to 2022
Employee personal allowance	£242 per week £1,048 per month £12,570 per year
English and Northern Irish basic tax rate	20% on annual earnings above the PAYE tax threshold and up to £37,700
English and Northern Irish higher tax rate	40% on annual earnings from £37,701 to £150,000
English and Northern Irish additional tax rate	45% on annual earnings above £150,000

Income Tax rates and thresholds are subject to confirmation at the budget.

From https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2021-to-2022

I am sceptical that such confirmation will be forthcoming.

I will wager you my monthly increase on net income.🤔

I never bet on anything.

Didn’t mean to offend - I was just highlighting the miniscule £14 a year tax saving for a basic rate taxpayer.