Your first £11,000 of earnings are now tax free - great change for the low paid

Less tax for low paid. More money in your pocket. A far cry from Labour and the 10p tax, and a taxing of all people on earnings from £6,000-£11,000. This does not happen now - this Conservative government has continued the great work of the Coalition in taking the low paid out of tax. It is also a tax cut for all working people - that's 30 million people - giving them more moment in their pocket. This puts us well on target to raise the personal allowance to £12,500 by 2020.  

You can find out how much you have saved since 2010, using our income tax calculator.

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

Today:
•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.