Changes to personal tax free allowances due to come into force this month could mean the average person is better off, an industry insider has claimed.
John Whiting from the Chartered Institute of Taxation commented that new measures will mean most of the people who lost out during the ten pence tax row that broke out earlier this year will be compensated.
“What the change … means is the personal tax free allowance goes up by £600, which is worth £120 a year to base rate tax payers” he added.
This extra income could be important to those handling debt management plan.
Mr Whiting predicted that people earning about £10,000 or more “will now be ok”.
Approximately 5.3 million families were left worse off by the scrapping of the ten pence tax rate, including childless single people under 25, according to the Institute for Fiscal Studies.
By Jamie Price