Personal Tax allowance 2014/15
Westminsterflye
Posts: 195 Forum Member
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is going up by £560.
Which by my calculations will mean an extra £46 in monthly paypacket!
Hope it pans out, these things tend to be given in one hand and taken with the other!
Can anyone confirm?
Which by my calculations will mean an extra £46 in monthly paypacket!
Hope it pans out, these things tend to be given in one hand and taken with the other!
Can anyone confirm?
0
Comments
Indeed.
Once again, the threshold for when the 40% rate applies has fallen, this time from £32,011 to £31,866.
The (very slightly) good news being that it's £31,866 of taxable income until your income gets into six figure (as I discovered when HMRC mistakenly forecast my income for this year at that kind of level). Flippin' Tories, bashing the rich again! (Irony intended).
Unfortunately for the over 65s, their personal tax allowance is frozen, while the tax allowance they actually get is reduced every year because of rises in retirement pension.
Coupled with rises to my occupational pension, it won't be long before I'm paying higher rate tax on my pensions!
Regarding the OP's question, the tax allowance is the amount of income which is free of tax. Hence the money saved is the tax which would have been pain on that slice of income.
For basic rate payers, that's 20% of £560, or £112 a year. As trphil said, just over £9 a month.
I wish you were my accountant.
The headline might be 'personal allowance goes up to 10.5K' or '2k for everyone with kid'.............but these are announcements of something that might happen in 2 or 3 years if things don't change
The Chancellor gets the good headlines now but it doesn't cost anything for a few years, when he might be gone anyway
The allowance of what you can earn tax free is increasing by £560. You will not get £560 extra in your pay. Assuming you are not affected by changes to the higher rate threshold, your tax liability will reduce by 20% of the £560. So you will have an extra £112 in your take-home pay over the year. This equates to £9.33 per month (as another poster said).
Sorry!