Chancellor of the Exchequer Sajid Javid has announced that 31 million taxpayers will benefit from a April tax cut under a new legislation
Government Ministers have pledged that the rates of income tax, National Insurance and VAT will not rise, and have set out an ambition to raise the National Insurance thresholds to £12,500.
A standard employee will save around £104 in 2020-2021, while those that are self-employed will have £78 cut from their bill.
The changes are all part of the government’s commitments to ensure that ‘more money is put into the pockets of hard-working people.’
Chancellor of the Exchequer Sajid Javid said:
“We’re determined to do what we promised and put more money into the pockets of ordinary hard-working people. That’s why we’re starting this government as we mean to go on, by cutting their bills.
“We want everyone to feel that they can contribute to the new chapter we are opening for the economy and our country because under this Government work will always pay.”
All the other thresholds for 2020-21 will rise with inflation, except for the upper NICs thresholds which will remain frozen at £50,000.
Editor's Recommended Articles
Must Read >> Does your business qualify for R&D tax credits?