Rise in personal tax allowance benefits higher ratepayers by £340 a year with basic rate band £70 better off and universal credit recipients better by just 50p per week Higher rate taxpayers will be £340 a year better off after budget changes to income tax,but lower earners will gain just £70 and those on universal credit just 50p a week, as the chancellor rejected accusations that the well-off do not pay enough tax.
The personal allowance – that fragment of your pay not liable for income tax – will travel up to £11850 from April next year, and a £350 increase from the current level. The rise will help Philip Hammond meet the Conservative election pledge to raise the allowance to £12500 by 2020. In practice,it turns into a £70 saving for a basic rate taxpayer, as it means that £350 more of their income is not liable to 20% income tax.
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Source: guardian.co.uk