@cazzatime: Increase the £12,570 tax-free Personal Allowance? 📈 The £12,570 tax-free Personal Allowance has been frozen since 2021 - and under current plans, it’s going to stay there until 2031. But there are growing calls for it to increase, with figures of £15,000 and even £18,000 being discussed. It sounds simple: increase the Personal Allowance and millions of people could keep more of what they earn. But there’s a reason the government may not want to do it… Frozen tax thresholds create something called fiscal drag. As wages rise but the thresholds don’t, more of your income can gradually become subject to Income Tax - and more people can be pulled into higher tax bands. According to the IFS, if the Personal Allowance had simply risen with inflation, it would now be around £16,070. So should the UK Personal Allowance finally be increased - or would the cost to the Treasury simply be too high? #PersonalFinance #money #taxes

Cameron ‘Cazza’ Smith

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Region: GB

Friday 02 October 2026 09:54:11 GMT