Personal allowance increase confirmed

Pay-Thinkstock-2014

The Queen has confirmed the personal allowance limit will be increased from £10,000 to £10,500 in 2015/16.

The increase was first announced in the 2014 Budget in March. 

It means the first £10,500 of an employee’s annual salary will be exempt from income tax.

Consequently, the average basic-rate taxpayer will pay £805 less income tax per year in cash terms from April 2015.