You may have heard the news that the government is implementing some changes to the tax bands for income tax. These changes are likely to affect all individuals paying income tax.
So, we thought we’d put together a quick article on what these changes will entail.
Changes to the Tax Bands
The tax bands for income tax are being changed for Personal Allowance, Basic Rate Limit and Higher Rate Threshold. The changes are as follows;
- Personal Allowance has been raised from £11,000 to £11,500
- Basic Rate Limit has been raised from £32,000 to £33,500
- High Rate Threshold has been raised from £43,000 to £45,000
As can be seen from these figures, the changes are not uniform across the bands. The objective of these changes is to reach the government’s goal of raising the Personal Allowance. I.e. tax-free amount up to £12,500 by the end of the current parliament.
How Will This Affect Me?
The simplest impact that these changes are likely to have is that you will be paying a little less tax than previously. If you’re an employer, you shouldn’t have to worry about the changes to your payroll, HMRC will issue tax codes as normal.
However, if you do have any questions, or would just like a more in-depth explanation of how these changes could stand to affect your tax situation. Why not get in touch with the Chartered Accountants here at K.A. Farr & Co.?
Call us today on 01704 211 434 or fill in our online contact form, and we’ll get back to you.