Personal Allowance Freeze

DoctorStrange

If you think HS2 is a waste of money wait until you hear about Trident...

Jeremy535897

[Deleted User] said:

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. 

No offence I assure you. I don't understand why HMRC have to go to the trouble of working out the inflation increase, send out codes with the new figure in, and then government usually just bins it all in the budget. It was a daft piece of legislation, presumably designed to shame the government of the day into uprating allowances. As if they ever have any shame!

Grumpy_chap

Jeremy535897 said:

I don't understand why HMRC have to go to the trouble of working out the inflation increase, send out codes with the new figure in, and then government usually just bins it all in the budget. It was a daft piece of legislation, presumably designed to shame the government of the day into uprating allowances. As if they ever have any shame!

I understand there have been several attempts in the past few years to switch the Autumn Statement and the Spring Budget so that there is a more joined up Autumn Budget that sets out the taxation for the following year plus the majority of spending with a far less significant Spring Statement that just makes very minor tweaks, but not to anything as substantial as income tax rates.
Every one of these attempts has been de-railed for one reason or another - I think there was even a point when one Chancellor never even got to deliver a budget because of the de-railing.

DoctorStrange said:

If you think HS2 is a waste of money wait until you hear about Trident...

Often, large infra-structure projects are more about the employment created while they are build than the end outcome.  

DoctorStrange

Grumpy_chap said:

Jeremy535897 said:

I don't understand why HMRC have to go to the trouble of working out the inflation increase, send out codes with the new figure in, and then government usually just bins it all in the budget. It was a daft piece of legislation, presumably designed to shame the government of the day into uprating allowances. As if they ever have any shame!

I understand there have been several attempts in the past few years to switch the Autumn Statement and the Spring Budget so that there is a more joined up Autumn Budget that sets out the taxation for the following year plus the majority of spending with a far less significant Spring Statement that just makes very minor tweaks, but not to anything as substantial as income tax rates.
Every one of these attempts has been de-railed for one reason or another - I think there was even a point when one Chancellor never even got to deliver a budget because of the de-railing.

DoctorStrange said:

If you think HS2 is a waste of money wait until you hear about Trident...

Often, large infra-structure projects are more about the employment created while they are build than the end outcome.  

There are better,  greener jobs to create if that's the goal. 

sultan123

How does the freeze affect someone who earns 100k a year

[Deleted User]

sultan123 said:

How does the freeze affect someone who earns 100k a year

It doesn’t - unless they reduce the amount above which the personal allowance reduces.