Budget 2018: How much income tax will you pay when personal allowance rises in April 2019?

Daily Express :: Politics Feed
Budget 2018: How much income tax will you pay when personal allowance rises in April 2019?

The personal allowance threshold, the rate at which people start paying income tax at 20 percent has risen.

Earners will start paying tax after £12,500 in April, compared to the £11,850 the previous financial year.

Philip Hammond announced the change in income tax in today’s Budget, which come a year earlier in April 2019 rather than 2020.

He said it is a “tax cut for 32 million people”.

The threshold at which you pay a higher rate of income tax will rise from £46,350 to £50,000.

The change to the personal allowance will mean an extra £130 in your pocket if you are a basic-rate taxpayer.

For somebody earning £50,000 a year they will get an extra £860.

The personal allowance was most recently raised in April this year, from £11,500 to £11,850.

The basic-rate taxpayer will pay £1,250 less tax in 2019-20 than in 2010-11.

National Living Wage increased by 4.9 percent from £7.83 to £8.21 an hour, from April 2019.

The Chancellor also announced that the minimum wage for other age groups with go up.

From £7.38 to £7.70 for 21-24 year olds, from £5.90 to £6.15 for 18-20 year olds and from £4.20 to £4.32 for 16-17 year old.

The statutory rate for apprentices aged under 19 or in the first year of their apprenticeship will increase by 20p an hour to £3.90.

The budget was the last scheduled one before Brexit, Mr Hammond said: ‘We are at a turning point in our history and we must resolve to go forwards, not backwards and work together to build a Britain we can all be proud of.”

Mr Hammond also announced an extra £1 billion over five years to help the transition on to the new system for the Universal Credit welfare reform.

And a £1,000 increase in the amount people can earn before losing benefit at a cost of up to £1.7 billion a year.

The Chancellor announced an extra £500 million for preparations for the UK’s departure from the EU in March 2019.

Schools in England will be handed £400 million, an average of 10,000 per primary school and £50,000 for secondary schools.

Along with a new tax on tech giants to make sure they “pay their fair share towards supporting our public services.”

He also promised extra funding for health and social care - confirming extra cash for mental health services and £650 million for English councils struggling to cope with rising care bills.

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