Over 2.8 million people in the North West to benefit from Government tax cuts

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Over 2.8 million people in the North West to benefit from Government tax cuts

As a result of a landmark Government policy and a key plank of the long-term economic plan, 343,000 people in the North West will have been taken out of income tax altogether from this weekend thanks to a series of increases in the tax-free personal allowance to £10,000 in 2014-15.

This means that overnight on Sunday, an extra 13,000 hard-working people from the North West will no longer pay income tax.

Over 2.8 million people in the North West – the vast majority of working people – will have benefited from the personal allowance increases over the past four years. For this financial year, that means an income tax reduction of £705 for the typical basic rate taxpayer. Over the lifetime of this parliament, the cumulative income tax cut by this government for the typical taxpayer will be £1,824.

Ahead of a question and answer session in the North West today with workers who will benefit, the Prime Minister said:

“A key part of this Government’s long-term economic plan is to cut taxes so that people can keep more of the money they earn and feel more financially secure. From this weekend, you will not pay a single penny of income tax on everything you earn up to £10,000.

“Nearly every single worker across the country will get a tax cut and over 3 million will pay no income tax at all. It says to the hardworking people of this country: we are on your side – and it’s one of the proudest things I have done in Government.”

The Prime Minister has previously said that it is right that changes to the tax system benefit typical basic rate taxpayers the most. The new changes on Sunday 6 April also mean that:

  • Someone working full-time on the October 2014 minimum wage (£6.50/h at 35hrs a week) will pay over 50 per cent less income tax in 2014-15 than a than someone on the national minimum wage in 2010; and
  • Someone working for just under 30 hours a week on the October 2014 minimum wage will not pay any income tax at all.

This means that the government is supporting many of those who work flexibly and part-time. The government is also helping women, who are the majority (54%) of the 3 million people who no longer have to pay income tax thanks to the increases to the personal allowance since 2010.

And, as the Chancellor announced in the Budget, the personal allowance will help even more hard-working families next year when it is increased again to £10,500.

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