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    New calls to increase personal tax allowance from £12,570 to £45,000
    United Kingdom

    New calls to increase personal tax allowance from £12,570 to £45,000

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    24 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

    3. Sad_hat20 on

      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

    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. sleepfaII on

      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. Serberou5 on

      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

    13. 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.

    14. 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.

    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. c0tch on

      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. mrchhese on

      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.

    23. 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