Tax

Member Article

Government says over 2.8 million people in region will benefit from tax cuts

Following a series of increases in the tax-free personal allowance to £10,000 in 2014-15, 343,000 people in the North West will no longer be paying income tax – an increase of 31,000.

The government says that more than 2.8 million people in the North West will have benefited from increases in personal allowance over the past four years.

For the current finacial year, it means an income tax reduction of £705 for the typical basic rate taxpayer.

Ahead of a question and answer session in the North West, the Prime Minister said: “A key part of this government’s long-term economic plan is to cut taxes so that people can keep more of the money they earn and feel more financially secure.

“From this weekend, you will not pay a single penny of income tax on everything you earn up to £10,000.”

The new changes, that come into effect on Sunday 6 April, also mean that someone working full-time on the October 2014 minimum wage (£6.50/h at 35hrs a week) will pay over 50 per cent less income tax in 2014-15 than a than someone on the national minimum wage in 2010, while those working for just under 30 hours a week on the October 2014 minimum wage will pay no income tax at all.

As the Chancellor announced in the Budget, the personal allowance will help even more families next year when it is increased again to £10,500.

This was posted in Bdaily's Members' News section by Simon Malia .

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