Tax Rebates & Refunds

UK’s threshold for income tax rises by £1,000

June 26, 2010
Posted in Budget 2010 — Written by Jennifer

Due to the latest tax scheme of increasing the personal allowance threshold more than 600,000 people in Northern Ireland in benefit. In this year’s budget, Chancellor George Osborne announced that the threshold will rise by £1,000.

According to the new budget, people who are earning less than £7,475 have to pay less tax from April next year. Through the new scheme, a taxpayer can save £170 in one year. People who have a higher income will not be benefited because the higher rate threshold will be the same until 2013/14.

The scheme is a first step towards raising the threshold to £10,000 over time. It also helps in balancing the impact of the 1% rise in insurance contributions for lower earners.

The chancellor also announced that £5,000 will be exempt from the employer’s NIC. More than 15,000 businesses in Northern Ireland will be benefited from this scheme. This will also help the local companies to save more than £80m a year. Tax partner, BDO Northern Ireland said that all small businesses in the UK will accept this scheme.

Once the personal allowance scheme is applied then 23 million basic rate taxpayers in the UK will be benefited which will cost £3.49bn to the Government. The changes in the tax scheme will have some kind of impact on every single citizen of the UK.

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