Theresa May has welcomed plans for further cuts to income tax. The Prime Minister has committed to tax cuts for 30 million people by raising the personal allowance to £12,500 and raising the threshold at which people pay the 40p rate of tax to £50,000 by 2020. New research shows that the proposals would take an estimated 4,880 low-earners out of paying income tax altogether in the Maidenhead constituency, and would mean no one working 30 hours a week on the minimum wage would pay any income tax.
Across the UK, the personal allowance increase would take one million low-earners out of paying income tax.
This builds on the action the Government has already taken to cut income tax. The personal allowance has risen to £10,000 since 2010, meaning the typical taxpayer is paying £705 less in income tax, and over three million people have been taken out of income tax altogether.
Commenting, Theresa said: “The best way to make families more secure is to let people keep more of what they’ve worked hard to earn. That’s why the Government has been cutting income tax as well as reducing the deficit. Because of the credibility of our long-term economic plan, a future Conservative Government will be able to go further by lifting even more people out of paying income tax and cutting taxes for 30 million people.”
