NEF calls for personal allowance to be replaced with 'weekly national allowance'

18 Mar 2019

Think tank the New Economics Foundation (NEF) has called for the income tax personal allowance to be replaced with a new 'weekly personal allowance'.

In April 2019, the personal allowance will rise from £11,850 to £12,500. In a new report, the NEF stated that the expansion of the personal allowance is 'one of the most expensive and regressive public spending projects of the 21st century'.

It is urging the government to introduce a new weekly personal allowance of £48.08 for individuals resident in England, Wales and Northern Ireland, and an allowance of £45.68 for those in Scotland. The NEF said that, under its plans, eligibility for the allowance would be extended to everyone over the age of 18 with a national insurance number.

According to the think tank, payments would be administered by HMRC, and would be tax-free. The basic rate of income tax (starter rate in Scotland) would be 'applied to the first £1 of most forms of income'.

'The persistent increases to the personal allowance of income seen over the past decade represent one of the most expensive and regressive public spending initiatives of the 21st century so far,' said Alfie Stirling, Head of Economics at the NEF.

'With Brexit among a number of recessionary threats on the horizon, the weekly national allowance would not only help to shield families from the worst effects of recession, but would also aid future recovery by maintaining a minimum level of income and spending in the economy.'

Register for our newsletter

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Register

Weston-super-Mare

34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

01934 415022


Home | Contact us | Accessibility | Disclaimer & Privacy Policy | Help | Site map |

© 2024 Four Fifty Partnership. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be found at auditregister.org.uk under the reference C001092613.

"four fifty partnership" is a trading name of Four Fifty Partnership Limited. Registered in England. Company Number 5032008. Registered Office 34 Boulevard, Weston super Mare, Somerset BS23 1NF.

Directors: Richard Acreman BSc CTA, Joy Boswell FCCA FCA, Peter Ison BA FCA and Nick Gravell FCCA FCA.

Professional Indemnity Insurers: Nexus Underwriting Limited, 52-56 Leadenhall Street, London, EC3A 2EB (Policy Number: 44402654). The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.