No change to Income Tax allowance for those earning under £100,000
High earners should be paying more tax than those on lower incomes.
That’s the message from the treasury minister who has today set out a new tapered personal allowance rate for those people who early more than £100,000:
The move was announced as part of Alex Allinson’s Budget.
Higher earners will see their allowance tapered and reduced by £1 for every £2 that their income is above £100,000 or £200,000 if they are jointly assessed.
Income tax lower rate for individuals remains at 10 per cent and the higher rate at 20 per cent.
The allowance for those who don’t reach that threshold will remain at £14,500 for an individual and £29,000 for a jointly assessed couple.
A National Insurance Holiday Scheme – designed to help attract new residents and school leavers – will also be amended.
From Apil the maximum value of a refund is increasing from £4,000 to £4,400 and the minimum annual gross salary, to qualify for a refund, is jumping from £21,000 to £23,000.
The requirement to work a minimum number of hours to qualify for a refund is also being removed.