Personal Allowance increase to £10,000 per annum for 2014/15 tax year
Date: 26th March, 2013 | Author: Jeremy Goodwin | Comments: 0
This increase was presented by George Osborne as a big tax advantage to low earners and it has been estimated that this take 260,000 out of the range for paying income tax. However on the flip side it has been estimated that 200,000 of these were included for auto-enrolment, but will now be excluded if the Department for Works and Pensions continues to link the auto-enrolment threshold to the tax personal allowance as they have up to now and for 2013/14.
A worker just below the new personal allowance could still opt to join the scheme and receive an employer contribution, but the fact that they will not be automatically enrolled may cause them to miss out on the valuable employer contributions available.
Please note however that for employers with more than 250 employees as at 5th April 2012 their staging date will already have passed by the end of the 2013/14 tax year, so they would not be affected.
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