Tax Rebates & Refunds

Lib Dem personal allowance plans could take 1m people out of income tax net

February 27, 2013
Posted in Income Tax — Written by Geoffrey

The Liberal Democrat party has indicated that in its next manifesto, it will propose raising the tax-free personal allowance to around £13,000. This would mean that more than a million low-income workers in the UK would not pay anything to HM Revenue and Customs (HMRC), the government department responsible for income tax and tax rebates.

The Chief Secretary to the Treasury, Lib Dem Danny Alexander has declared that no one who is earning minimum wage should have to pay income tax at all. Commenting on the Lib Dem objective to raise the personal allowance to £9,205 in April and £10,000 by the year 2014, which is likely to go ahead as part of the Coalition agreement, Mr Alexander said:

“We want to go even further, so that someone working full time on the minimum wage pays no income tax at all and those on low and middle incomes receive further big tax cuts.”

Mr Alexander also added:

“The Lib Dems are the only party that will radically cut taxes for people on low and middle incomes that will build a stronger economy and a fairer society so that everyone can get on in life.”

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