Tax-free £10,000 earnings likely 'within two years'

from the desk of Bookkeeper Derby

In the Tax Season ending 2001 the Personal Tax Free Allowance was £4,385.00 The recent increases have meant that for the Tax Season ending 2013 the Personal Tax Free Allowance will be £8,105.00 

Intriguingly a recent article in the Independant [speculates] that in next years budget the PTF will be set so that anyone earning £10,000 will no longer be required to pay tax.

Sounds like good news?

Perhaps not...

Rachel Reeves, shadow secretary to the Treasury, said the rise in tax personal allowance was not enough.

"Ed Balls said ahead of the Budget the best way of getting money in the pockets of ordinary people was a cut in VAT, but we said we would support an increase in personal allowance. But numbers from the Institute of Fiscal Studies shows that from next month the average family is going to be £530 worse off each year, and these changes only help by about £170." 


BKD


Source:  The Independant