Osborne set to increase income threshold to £8,045

THE INCOME TAX threshold is likely to be increased by £45 a year in today’s Budget in a move that will affect an estimated 25 million people.

It has been widely reported that the threshold will be increased to £8,045 in April 2012, on top of the £1,000 increase next month, which was announced in the last Budget.

The Daily Mail has estimated that 25 million workers see a £320 tax cut, and everyone on less than £115,000 will benefit to some extent. The 2 million people paying 40% income tax will be £45 a year better off.

The government has committed to raising the personal allowance threshold to £10,000 by the end of this Parliament.

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