Sunday, 6 April 2014

The income tax-free personal allowance increases to £10,000: 24 million taxpayers will benefit

•The income tax-free personal allowance increases to £10,000. 24.5 million taxpayers will benefit, with a further quarter of a million taken out of paying income tax altogether. From April, typical basic rate taxpayers will have gained by £705 from all increases announced by this Government. Three million people on low incomes will be taken out of income tax altogether.
•Employer National Insurance Contributions will be cut by up to £2,000. This new Employment Allowance will benefit over one and a quarter million employers, over 90 per cent of them small businesses. 400,000 small businesses will no longer pay employer National Insurance at all.

This is in addition to the savers’ package of measures, increasing the ISA allowance, offering new Pensioner Bonds in the next financial year and freeing savers to make their own decisions about their pension savings.