Tax-free income threshold rises

Suzie Neuwirth
The UK tax free personal allowance – the level at which people start paying tax on their earnings – will increase from £10,600 to £11,000 next year, the government confirmed yesterday.

It was also announced in the summer Budget that the higher tax rate threshold, at which people start paying the 40 per cent rate of tax, will increase to £43,000 from £42,385.

The government plans to increase the personal allowance to £12,500 by 2020.