Changes to Personal Allowance and Basic Rate Band

Tax Year	Personal Allowance	Basic Rate Band	Higher Rate Threshold
2012/13	£8105	£34,370	£42,475
2013/14	£9440	£32,010	£41,450
2014/15	£10,000	£31,865	£41,865
2015/16	N/K	N/K	£42,285

Details shown come from the Finance Act of 2013.

 For the tax year 6^th April 2013 to 5^th April 2014, the Personal Allowance rises to £9440 from £8105, meaning you would have to earn at least £9440 in that tax year before you owe any income tax. This is good news for those on a smaller income which doesn't exceed the basic rate of 20%.

 However, the fall of the basic tax rate band from £34,370 in the previous year to £32,010 means that the higher tax rate threshold has also been reduced. Therefore, the income at which individuals would have to pay the 40% tax rate is lower than in previous years.

Plans for the higher rate threshold in the years 2014/15 and 2015/16 are improvements on the 2013/14 year of £41,450, but they are still worse than the figure of £42,475 for the 2012/13 year just gone.