Personal Allowance

No1newts · 20 Apr 2013 at 18:06

I have heard this is going up soon?

Is this correct and what is it at the moment?

Additionally I don't suppose we are lucky enough that the upper tax limit 40% band is rising too?

Just trying to work out (roughly) where I'll be at money wise.

Dan Dan · 20 Apr 2013 at 18:08

http://www.hmrc.gov.uk/incometax/personal-allow.htm

been a few tax questions today

I linked the site because I don't know any details about you, age, married etc.

Before April it was £8100 and it has gone up to £9440 for me.

mattyfez · 20 Apr 2013 at 18:19

Think it goes up to about 10k next year, presumably in April as it's the end of the tax year. Currently it's a 9.4k,so good news.

No1newts · 20 Apr 2013 at 18:34

What was it before 9.4k? Edit, just saw the £8100 figure

That married couples allowance,

http://www.hmrc.gov.uk/incometax/married-allow.htm

Have I read it right that one if you must have been born before 1935 meaning only people 77+ and married can claim? :confused:

semi-pro waster · 20 Apr 2013 at 18:40

No1newts said:
Have I read it right that one if you must have been born before 1935 meaning only people 77+ and married can claim?

Well, one of you needs to be 77+. If you can find yourself a sugar granny (or grandad - I don't know what your preference is) and you were married after 5 December 2005 then the partner with the higher income can claim.

You're also destined to be disappointed with the higher rate of income tax banding too, it's dropped slightly so it now kicks in at £41,451 although as you've noticed the personal allowance has risen as well. For reference it was previously at £42,475 including the personal allowance.

No1newts · 20 Apr 2013 at 18:43

Give with one hand takers with the other

Westyfield2 · 20 Apr 2013 at 18:49

Personal tax allowance rose from £8,105 to £9,400 on April 1 2013, and will go to £10,000 in April 2014.

http://www.dailymail.co.uk/news/art...leave-workers-700-year-better-April-2014.html

mattyfez · 20 Apr 2013 at 18:52

Personally I think its a small step in the right direction, higher earners have had it far to easy.

No1newts · 20 Apr 2013 at 18:54

How is increasing personal allowance effecting high earners?

Or assuming you mean lowering the 40% limit I would hardly call someone on 45k wealthy :rolleyes:

certainly a comfortable lifestyle but anything but wealthy.

sigma · 20 Apr 2013 at 18:54

mattyfez said:
Personally I think its a small step in the right direction, higher earners have had it far to easy.

Wat

Duke · 20 Apr 2013 at 18:55

sigma said:
Wat

Psymonkee · 20 Apr 2013 at 18:55

950L according to my payslip

Westyfield2 · 20 Apr 2013 at 18:56

Personally I'd say it should be a flat tax percentage for everyone, probably about 25%. But anyways, it's not... yet!

mattyfez · 20 Apr 2013 at 19:09

No1newts said:
Or assuming you mean lowering the 40% limit I would hardly call someone on 45k wealthy

I'd call that pretty wealthy.

semi-pro waster · 20 Apr 2013 at 19:13

mattyfez said:
I'd call that pretty wealthy.

It depends on your outgoings to an extent and where you live. It's certainly above the average wage but I don't think it's a particularly extravagant wage.

[TW]Fox · 20 Apr 2013 at 19:15

Westyfield2 said:
Personally I'd say it should be a flat tax percentage for everyone, probably about 25%. But anyways, it's not... yet!

I'm no socialist but raising the tax of the lowest earners to fund a tax cut for the higher earners probably isn't a sensible move right now.

Surveyor · 20 Apr 2013 at 19:16

Additionally I don't suppose we are lucky enough that the upper tax limit 40% band is rising too?

It's actually been lowered so if you're a higher rate taxpayer what you gain from the increase in the personal allowance you pretty much lose at the other end.

mattyfez · 20 Apr 2013 at 19:16

Out goings are personal choice, as is where you live. That's almost twice whatI make, as a single person and I'm comfortable, if I was on 40k I would be utterly laughing! I'd probably but a hose, or a speed boat!

No1newts · 20 Apr 2013 at 19:17

mattyfez said:
I'd call that pretty wealthy.

I'd call you envious.

100k I can see the wealthy tag coming along but less than 50k whilst it can offer a decent lifestyle it would hardly allow you the freedom to do what you want, when you want, which I would see being wealthy as offering.

semi-pro waster · 20 Apr 2013 at 19:23

mattyfez said:
Out goings are personal choice, as is where you live. That's almost twice whatI make, as a single person and I'm comfortable, if I was on 40k I would be utterly laughing!

Up to a point outgoings and location are a personal choice but it's undeniable that the greatest number of jobs that pay £45k (or above) are in London. If you can't find a job paying that much in a cheaper area then you've either got to live in London or commute into London - both those options cost in different ways e.g. a season ticket for train travel could be £5k per year as I know a couple of people who pay around that figure.

If you're comfortable on £20k then congratulations, you've got very low outgoings and are in a reasonably fortunate position - that doesn't automatically imply that everyone is in the same position nor that they could get into that position if only they willed themselves to do so.