Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to Anonymous,bruncher,niord,gvonge,Shelford, for Donating to support the site

Personal tax allowance levels

Straight answers to factual questions
Forum rules
Direct questions and answers, this room is not for general discussion please
Gerry557
Lemon Quarter
Posts: 2199
Joined: September 2nd, 2019, 10:23 am
Has thanked: 192 times
Been thanked: 613 times

Personal tax allowance levels

#668427

Postby Gerry557 » June 11th, 2024, 11:23 am

I think the between 2000 and 2010 the personal allowance went from £4385 to around £6474. What would it like be today if it has risen at the same levels.

I know the Coalition increased it more rapidly from 2010.

I suspect it would be £9k to £10k range possibly less as inflation was probably lower. So are we still "ahead" even with frozen levels?

chrissyr
2 Lemon pips
Posts: 153
Joined: August 13th, 2017, 9:51 pm
Has thanked: 43 times
Been thanked: 40 times

Re: Personal tax allowance levels

#668438

Postby chrissyr » June 11th, 2024, 12:35 pm

So up about 50% in 10 years so 2010 to 2020 you would get to about 10k. Add in 20% for the next 4 years it's about 12k.

So we haven't been spoilt ;)

Missout the the next 4 years (20%) and your down about £2k or so.

Tedx
Lemon Quarter
Posts: 2166
Joined: December 14th, 2022, 10:59 am
Has thanked: 1916 times
Been thanked: 1532 times

Re: Personal tax allowance levels

#668440

Postby Tedx » June 11th, 2024, 12:37 pm

£4385 @ 3% over 24 years is £9000.60

https://www.thisismoney.co.uk/money/sav ... lator.html

chrissyr
2 Lemon pips
Posts: 153
Joined: August 13th, 2017, 9:51 pm
Has thanked: 43 times
Been thanked: 40 times

Re: Personal tax allowance levels

#668444

Postby chrissyr » June 11th, 2024, 1:12 pm

The rise between 2000 and 2010 is 3.9% pa (using your calculator) so 3% is a random made up number to get to a figure you want - your not a tory advisor are you ;)

Tedx
Lemon Quarter
Posts: 2166
Joined: December 14th, 2022, 10:59 am
Has thanked: 1916 times
Been thanked: 1532 times

Re: Personal tax allowance levels

#668448

Postby Tedx » June 11th, 2024, 1:36 pm

chrissyr wrote:The rise between 2000 and 2010 is 3.9% pa (using your calculator) so 3% is a random made up number to get to a figure you want - your not a tory advisor are you ;)


:D

Aye, but whats the number between 2000 and 2024? Inflation has been pretty low since the GFC (the last couple of years notwithstanding)

Saying that, yes I did just pluck 3% out of the air. It sounded about right.....oh hang on, that's the phone.

'....Hello?....yes....yes....no problem. Ok, I'll see you on Monday. Thanks Rishi!'

gryffron
Lemon Quarter
Posts: 3701
Joined: November 4th, 2016, 10:00 am
Has thanked: 578 times
Been thanked: 1647 times

Re: Personal tax allowance levels

#668452

Postby gryffron » June 11th, 2024, 1:59 pm

Gerry557 wrote:I think the between 2000 and 2010 the personal allowance went from £4385 to around £6474. What would it like be today if it has risen at the same levels.

Using actual inflation calculated by https://www.bankofengland.co.uk/monetar ... calculator

£4385 in 2000 was worth £5394 in 2010. So it went up in real terms under Labour. 2.0% pa. (10th root of 6474/5394)

£12570 today was worth £8421 in 2010.
So it has increased by 1.9%pa in real terms under coalition/Tory to date. (14th root of 8421/6474)
Barely any change.

So we are currently still WAY ahead of where it was in 2000 or 2010 despite the recent freeze.

Gryff

Gerry557
Lemon Quarter
Posts: 2199
Joined: September 2nd, 2019, 10:23 am
Has thanked: 192 times
Been thanked: 613 times

Re: Personal tax allowance levels

#668595

Postby Gerry557 » June 12th, 2024, 10:21 am

I went to the BoE calculator and the £6474 would be worth £9663 with inflation.

This assumes that things would rise with inflation. So potentially ahead. Using the same method from 2000 would be £8052.16. To 2010 it was £5394.77 this figure though is less than what was being paid.

Should thresholds rise a bit faster than inflation then. Probably if you are a pensioner, hopefully if you are a worker.


Return to “Does anyone know?”

Who is online

Users browsing this forum: james51 and 4 guests