Great news for anyone who pays tax (being most of us). Personal allowances are set to rise to £10,000. Your personal allowance is the amount of money which you can earn before you have to pay tax. For example:

I work at Q Co and earn £8,000 a year. Because I earn under £10,000 I don’t pay tax. However, I get a huge pay increase to £12,00 a year. I would then pay tax on £2000, because £10,000 of what I earn is covered by my personal allowance.

There aren’t many ways to increase your personal allowance, the best way is by being old, but there are several different ways to save tax free. For instance, we can all put away £5,100 into cash ISAs and gain around 2.5% interest on it. Better than a kick in the teeth.

For more ways to save tax and keep more of what you earn. Get in contact with us.