Britain has today seen its Personal Workers Tax Allowance reach £8,105, its highest ever level. This means you can earn up to that amount before you have to begin paying Income Tax.
The move and ongoing policy, heralded by Chancellor Osborne in his Budget 2010 and by The Guardian, headlining, "Income tax removed for lowest paid". Also in 2011 and this year, as the main event, as it will effect 24 million households. Osborne said Personal Tax Allowance will rise further to £9,205 next April, lifting millions of low paid people out of tax altogether.
Chloe Smith, the Treasury Economic Secretary, said: "The Government's actions mean that from the beginning of the new tax year, 24 million households will be £6.50 a week better off. We're taking millions out of tax altogether by raising the personal allowance, which will put up to £126 cash back in people's pockets.
The need to tackle the huge deficit means we have had to take tough decisions, such as on tax credits. But we've taken those decisions in the fairest way possible, meaning more than 15 times as many people gain rather than lose from this week's changes." (Source.)
The Coalition hope to reach their target of raising the Personal Tax Allowance to £10,000 by the end of the Parliament.
