Budget 2015: Coalition 'to raise personal allowance towards £11k'

[TheFaQQer]

Why would he raise the personal allowance disproportionately this year?

See post 2

[VectraMan]

That's true but it's not a lot. Imagine you only paid tax on Salary+Divvies above 60k AND you split shares between you and spouse 50/50 so 120k tax free money (I know its not really tax free but no Self assesment tax bill)

Promising tax cuts for tax avoiders isn't likely to get anyone elected.

Personally I think raising the allowance is a very good policy, and one that's as close as anyone's ever likely to get to being "fair".

[Platypus]

The Times reported last week that he was going to raise the NI threshold for employees, which benefits lower paid workers. Great idea IMO.

[Martin@AS Financial]

According to City AM, the increase to £11,000 would work out as an extra £200 in your pocket every year.

[Platypus]

According to City AM, the increase to £11,000 would work out as an extra £200 in your pocket every year.

In my pocket, yes, but nothing in the pocket of anyone earning less than £10,500.

[Unix]

They should do away with all these personal allowances and bands and just have a flat 15% across the board. The tax system would be much simpler (cheaper) and less people would avoid as it's so low. Do that and raise the minimum wage with inflation.

[VectraMan]

They should do away with all these personal allowances and bands and just have a flat 15% across the board. The tax system would be much simpler (cheaper) and less people would avoid as it's so low. Do that and raise the minimum wage with inflation.

Making the poor poorer and the rich richer isn't likely to go down well either.

[d000hg]

That's true but it's not a lot. Imagine you only paid tax on Salary+Divvies above 60k AND you split shares between you and spouse 50/50 so 120k tax free money (I know its not really tax free but no Self assesment tax bill)

I know what you mean but ultimately "I'm earning too much" is not really a problem

[fullyautomatix]

They should do away with all these personal allowances and bands and just have a flat 15% across the board. The tax system would be much simpler (cheaper) and less people would avoid as it's so low. Do that and raise the minimum wage with inflation.

How would that win the election for them ? Making tax system simpler is not a priority, winning the election is.

[d000hg]

And people care how much tax they pay, not how simple it is. It mostly is quite simple anyway, since we use bands rather than some sliding scale.