Neue Forderungen zur Erhöhung des persönlichen Steuerfreibetrags von 12.570 £ auf 45.000 £

https://www.dailyrecord.co.uk/lifestyle/money/calls-increase-personal-tax-allowance-34300207

Von Aggravating-Pilot774

47 Comments

  1. Aggravating-Pilot774 on

    Yeah I know £45k is a crazy number. But interested in hearing what people think it should be changed to/why

  2. AnotherKTa on

    And their proposal to make up for the *massive* loss in tax revenue is….?

  3. 45k is a huge jump. But it makes sense to increase it some amount since it’s been 12,500+ since 2019 where we’ve seen a huge inflation since then

  4. strawbebbymilkshake on

    Aren’t people a net drain until they earn in the mid 30s? Like that’s the point where you start paying more tax than you benefit from on average.

    This will obviously not happen and it devalues more legitimate/reasonable calls for changes to this system

  5. I would just be happy if I could claim my partner’s allowance in full if they don’t.

  6. This is absolutely right, but would only be possible with a huge wealth tax coming in.

  7. Icy_Collar_1072 on

    Lol, raising the personal allowance threshold to £45k would result in a tax revenue loss of ~£130 billion. Where are we making up this massive shortfall? 

  8. I agree about raising the allowance, but the number seems a bit extreme – a bit ridiculous suggest anyone earning below £45,000 shouldn’t have to pay anything towards public services they utilise

  9. I’d support an increase but not to that amount. It hasn’t been raised in a while and 40 hours minimum wage is now 10k more than that so a modest rise is probably justified. 45k is pretty insane though.

  10. Limp-Archer-7872 on

    It is good for people to contribute. A lot of people contributing a little adds up. I don’t think that the threshold and rates are bad really, but they shouldn’t be frozen.

    I’d merge all monetary gains as income – dividends, interest, etc. If allow a taper to account for inflation on long term gains.

    I’d hope for household level taxation instead of individual, as single earner households are suffering a lot. Perhaps tie this to the other partner being unfit to work or providing childcare to an under 12.

  11. Intruder313 on

    Sounds like silly high-balling!

    It’s been allowed to drag by design and should be increased by the 5 years inflation

  12. Alert-One-Two on

    Minimum wage is something like £15.5k/year. If they proposed changing it to keep in line with that it wouldn’t seem quite so ridiculous but this suggestion is clearly just nonsense.

    Fiscal drag has been a mainstay of quite a few budgets now. I can’t see them changing it particularly soon.

    Edit – seems I underestimated minimum wage.

  13. andymaclean19 on

    I think about 2/3 of the country would pay no income tax at all at that point. It would be difficult to reclaim the lost tax from the other 1/3 given that even they are not doing particularly well right now and if you try to reclaim it from, say, the top 1% there are not very many of those people so even putting up their taxes probably wouldn’t make up the difference.

  14. EastStreet7408 on

    £45,000 is too much something reasonable like £18-20k would be great.

  15. SecureVillage on

    Very keen for us to offset fiscal drag but 45k is clearly a bad idea…

  16. evolveandprosper on

    The usual bollocks about income tax cuts. Conveniently overlooking the fact that the highest earners would benefit most whilst those who earn least will gain least – in the case of part-time workers earning less than £12,750 per annum, they would gain NOTHING.

  17. techbear72 on

    Not sure it’s a good idea. At that amount you have a load of very middle class people, potentially with household incomes approaching £90k not paying any tax and I think that’s going to breed some resentment.

    I think a better plan would perhaps be £15k for a nominal amount, £22k (minimum wage) for the next step, still lower than current, and then bands at £33k, £50k (move current higher rate to here), £100k and £250k all weighted so that the tax take is broadly the same, just distributed more fairly and more progressively.

    In conjunction with a 1% wealth tax on holdings above £10m, I think that’d be a good start.

  18. CandyKoRn85 on

    I personally think the personal allowance should be increased to where the living wage is at (probably like 23k now??) 45k seems excessive.

  19. This petition was made by short sighted people. I’m under that 45k so obviously I’d love it but there is no way this works. We need to increase the treasury not reduce it.

  20. Boundish91 on

    Lol. Back home in Norway the cut off is £6500.

    How will they make up for this massive loss in tax income? Services are already underfunded..

  21. ObviouslyTriggered on

    The tax free allowance is DOUBLE what it should be if it racked inflation since the 1980’s till date, including the high inflation period of the past couple years.

    We have the highest tax free allowance in the developed world, it’s 50% higher in nominal terms than Germany and much more than that in real terms compared to median wage.

    It’s even higher than the standard deductible which is the tax free allowance for federal income tax in the US.

    The tax free allowance in the UK should be between 6 and 7 pounds, no 13K and definitely not 45K….

  22. No_Breadfruit_4901 on

    Ok and who will fund the massive shortage of tax revenue to pay for public services if you increase personal allowance significantly to £45k?

  23. BusyBeeBridgette on

    45k? I’d say 25k would be more reasonable. Helps out the most poor in society and doesn’t cut a mass hole in tax revenue as the average worker gets is 30 something k.

  24. Deep_fried_jobbie on

    You could maybe get away with getting rid of income tax altogether in conjunction with higher energy VAT, PPM road tax & VAT increases, moving further with the move to indirect taxation that our nation has witnessed over the past half century. There’s only so much that the income tax paying cohort of the populace can be taxed. The rest can’t either through genuine incapacity and the gits who screw the system at the top and bottom.

  25. NuclearCleanUp1 on

    It’s a petition from the public.
    They don’t have to think it through.
    They just have to ask for it and let the wonks it figure out

  26. polymath_uk on

    The fairest tax system is a flat tax. All taxation should be abolished and every able bodied adult under retirement age just pays a flat amount each year. 

  27. Drunkenmeows on

    National minimum wage incoming should be the threshold imo. Currently £11.44 or £20,820 should either void of tax or have a lower tax rate like 10% after a 12,570 (if the government love that figure) then 20% over nwn levels.

    Get rid of NI.

    The current 12,570 is an effective Tax increase YoY since whenever it got frozen there…

    This might actually help make work pay… but who knows

  28. And wbat about the fiscal drag in the higher bands? What about more and more people getting into the ludicrous 100k tax trap?

    Income tax is already progressive.

  29. aeroplane3800 on

    They should scrap the personal allowance. Everyone should be made to contribute. 

  30. FlatHoperator on

    Yes let’s make the tax base even fucking narrower every year, eventually no one will have to pay any tax at all!!

  31. GhostCanyon on

    Realistically if they’re going to continue to push living costs they’re going to have to do something for “lower earners” if you have to spend £1307 (average rent 2024) £106 council tax, £200 per month gas and electric then you can’t expect people to bring home £1600 per month. It’s just not sustainable and the wage market is not keeping up at all. I see jobs insisting on degree and 5 years experience at 30/31k it’s just a joke

  32. locklochlackluck on

    Personally I think setting it to £0 but then having a universal basic income to offset is better. Possibly an introductory 10% rate would be a fair compromise. 

    I used to be a fan of the tax free threshold but it’s morally challenging that so many people benefit from other people’s tax yet pay in little themselves. The pain of tax must be shared fairly even if not equally. 

    You wouldn’t go out to dinner with friends and expect to pay £0 towards the bill and just because we think of the state as a seperat entity we don’t feel that it’s “something for nothing” – someone else has had to forego something in their life to afford to pay for your contribution. 

    Just my 2p.

  33. Whos proposed this . Way too much of a loss in revenue when we need as much as possible to be reinvesting rn .

    Raising it a bit to help the lower income family’s wont hurt however

  34. While the tax free allowance does need to increase (people on less than full-time minimum wage probably shouldn’t be paying tax), increasing it to £45k would eliminate, what, 80-85% of all tax payers?

    Good way to cripple government tax takes.

  35. Great idea. And then just increase the tax over £50K to 80% because anyone earning more than that is obviously a millionaire!!

  36. Bettychan1933 on

    Lol what a load of old rage bait just tax any business that operates in the UK simples

  37. Sergeant_Fred_Colon on

    £45k is a bit much, I’d much rather have it to the equivalent of a full time wage at minimum wage.

  38. Expensive-Test7810 on

    That’s a ridiculous figure I feel.
    £20,000 would be more realistic. 

  39. Common-Ad6470 on

    That’s never going to happen, though what does need a radical shake-up is corporations
    / individuals making mega-billions only paying a tiny tax bill.

  40. chipxtreme on

    It should be raised to at least £20k. £45k is a bit too high IMHO

  41. TheFergPunk on

    What’s the bet that the person who made this petition is on £45k?

  42. Realistically you would need to basically axe enormous chunks of the welfare state and public services to pull this off.

    The UK’s personal allowance is already one of, if not the most, generous in Western Europe.

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