Year-End & Cash Flow

Autumn Budget 2017: Tax-free personal allowance extended to 11, 850

Praseeda Nair | 22 November 2017 | 6 years ago

Spring Budget 2017
The new personal allowance will leave the typical basic rate tax payer 1, 075 a year better off compared to 2010
Low paid workers, freelancers and micro business owners will have a greater tax-free income in 2018, after the chancellor extended the lower personal allowance 11, 850.

In his Autumn Budget speech, chancellor Philip Hammond confirmed an increase of the personal allowance from 11, 500 to 11, 850, giving a tax-free boost of 350 to those onbasic incomes.

Hammond claimedthis will mean a 1, 075 reduction in the amount of tax paid by a typical taxpayer in the 2018/19 tax year. The extension applies to all tax payers earning below 100, 000.

The government has previously pledged to raise the tax-free personal allowance to 12, 500 by the 2020/21 tax year.

However, with the UK’s inflation rate reaching three per cent, the increase to the tax-free personal allowance means a real terms increase of 0.04 per cent.

Hammond also confirmed the extension of the higher rate. As of 2018, the level at which earners enter the 40 per cent tax band will rise from 45, 000 to 46, 350.

Take a look at our Autumn Budget coverage

Related Topics

HMRC targets small businesses in tax avoidance crackdown
22 May 2023

HMRC targets small businesses in tax avoidance crackdown

Read More →
How To Print SA302 Tax Calculations From Your Online Self Assessment Account
17 May 2022

How To Print SA302 Tax Calculations From Your Online Self Assessment Account

Read More →
Managing your tax liabilities so that it doesnt kill cashflow
14 December 2020

Managing your tax liabilities so that it doesnt kill cashflow

Read More →
The complete guide to UK business rates
4 September 2020

The complete guide to UK business rates

Read More →
VAT deregistration – Everything you need to know
4 September 2020

VAT deregistration – Everything you need to know

Read More →
What is the difference between a sole trader and a limited company?
21 August 2020

What is the difference between a sole trader and a limited company?

Read More →

If you enjoy reading our articles,
why not sign up for our newsletter?

We commit to just delivering high-quality material that is specially crafted for our audience.

Join Our Newsletter