With the new personal allowance for the 2014/2015 tax year increasing to £10,000 the Chancellor George Osborne hails what he says is “the biggest reduction of business and personal tax in two decades” and “This week your business can keep more of the money it makes, so you can invest, expand and create new jobs.”
The new personal allowance will mean you don’t pay any income tax up to the first £10,000 of your earnings.
Mr Osborne added that the government is “backing businesses by cutting their taxes so they can create jobs, cutting the tax on hard-working people so their job pays, and holding back welfare rises and imposing more conditions on those claiming the dole, so that getting a job pays more”.
The new personal allowance for the 2014/2015 tax year is s big bonus for many lower earners. It means you don’t have to pay any tax on the first £10,000 earned. The new standard tax code for the 2014/2015 tax year is 1000L and will come in to use from the 6th April 2014.
Find out more on how the tax cuts could affect you with the BBC.
