Changes to personal allowance and income tax rates

You are here: Home » News & Views » Changes to personal allowance and income tax rates

Image for Changes to personal allowance and income tax rates

An increase in the personal allowance rate will see millions of people in the UK paying less tax as of this month.

The tax free personal allowance increased from £11,850 to £12,500 on April 6, 2019.

A typical taxpayer will be paying £130 a year less than last year.

The threshold for higher rate tax will also increase from £46,350 to £50,000.

Income tax rate bands have also changed for the new tax year, as shown in the table below.

Band

Taxable income

Tax rate

Personal Allowance

Up to £12,500

0%

Basic rate

£12,501 to £50,000

20%

Higher rate

£50,001 to £150,000

40%

Additional rate

over £150,000

45%

 

For further information about this, or any other tax matter, contact Peter Way-Rider, tax manager at Ellis & Co on 01244 343504.

*Figures from HMRC