Following yesterdays budget announcement, the Chancellor has announced that the personal allowance for income tax will be increased from £11,850 to £12,500, while the threshold at which you pay a higher rate of income tax is set to rise from £46,350 to £50,000 from April 2019
So, for those classed as a basic-rate taxpayer, it means you will have an extra £130 and those paying a higher rate will have an extra £860 a year: an additional £760 from income between the £46,350 – £50,000 bracket, as well as the £130 from their personal allowance.
For those living in Scotland, the income tax rates differ as they are set by the Scottish Parliament and are due to be announced in the Scottish budget in December. However, you will still have the same personal allowance as the rest of the UK.
For any further information regarding yesterday’s budget, please visit: https://www.gov.uk/government/publications/budget-2018-documents/budget-2018