{"id":420,"date":"2025-03-18T12:35:57","date_gmt":"2025-03-18T13:35:57","guid":{"rendered":"https:\/\/metalroofingintallahassee.com\/?p=420"},"modified":"2025-03-20T11:43:01","modified_gmt":"2025-03-20T11:43:01","slug":"petition-to-raise-personal-tax-allowance-reaches-200k-signatures","status":"publish","type":"post","link":"https:\/\/metalroofingintallahassee.com\/index.php\/2025\/03\/18\/petition-to-raise-personal-tax-allowance-reaches-200k-signatures\/","title":{"rendered":"Petition to raise personal tax allowance reaches 200k signatures"},"content":{"rendered":"<\/p>\n<p><span style=\"font-weight: 400\">A <\/span><a href=\"https:\/\/petition.parliament.uk\/petitions\/702844\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400\">petition<\/span><\/a><span style=\"font-weight: 400\"> calling for the government to increase the personal tax allowance threshold is once again gaining traction after it was posted on the parliament website last month.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In total, the campaign has now reached over 200,000 signatures and is rising daily. Alan Frost, who started the petition, has requested that the government raise the <\/span><a href=\"https:\/\/startups.co.uk\/tax\/uk-tax-brackets\/\"><span style=\"font-weight: 400\">income tax<\/span><\/a><span style=\"font-weight: 400\"> personal allowance from \u00a312,570 to \u00a320,000, in order to help low earners and pensioners navigate the ongoing cost of living crisis.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In response to the petition, the Government said it is \u201ccommitted to keeping taxes for working people as low as possible while ensuring fiscal responsibility.\u201d<\/span><\/p>\n<h2>What is the personal allowance?<\/h2>\n<p><span style=\"font-weight: 400\">The personal allowance is the amount of income someone is entitled to earn without paying tax, per year. As of now, the threshold for personal allowance is set at \u00a312,570. It has not been raised since the 2018\/19 tax year.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The personal allowance decreases for those who earn over \u00a3100,000 per year. For every \u00a32 earned over \u00a3100,000, \u00a31 of tax-free allowance is deducted.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Self-employed people qualify for both the personal allowance and the \u2018trading allowance\u2019, which allows them to claim the first \u00a31,000 of their taxable profits, tax-free.<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you earn over the threshold, you\u2019ll be liable for up to 45% income tax, depending on the amount you earn annually. The current tax rates for this financial year are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Basic rate (\u00a312,571 to \u00a350,270)<\/b><span style=\"font-weight: 400\">: 20%<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Higher rate (\u00a350,271 to \u00a3125,140):<\/b><span style=\"font-weight: 400\"> 40%<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Additional rate (over \u00a3125,140):<\/b> 45%<\/li>\n<\/ul>\n<h2>\u00a0Why the petition and why now?<\/h2>\n<p><span style=\"font-weight: 400\">In February, Frost said the petition was created to \u201chelp low-earners get off benefits and allow pensioners a decent income\u201d amid the cost of living crisis.<\/span><\/p>\n<p><span style=\"font-weight: 400\">According to a study reported by <\/span><a href=\"https:\/\/healthcareandprotection.com\/majority-of-uk-workers-still-struggling-due-to-cost-of-living-crisis\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400\">Health &amp; Protection<\/span><\/a><span style=\"font-weight: 400\">, 66% of UK workers said they were worried about the cost of living crisis, with 48% reporting that it was affecting their ability to do their jobs properly.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">With inflation still high, real wages are falling. The result is something called \u2018<\/span><b>fiscal drag<\/b><span style=\"font-weight: 400\">\u2019, an economic term that describes when tax thresholds are frozen, leading to increased taxable income. It results in a drop in take-home pay for earners, even if their salary stays the same.<\/span><\/p>\n<p><a href=\"https:\/\/startups.co.uk\/setting-up\/become-a-sole-trader\/\"><span style=\"font-weight: 400\">Sole traders<\/span><\/a><span style=\"font-weight: 400\"> in particular have felt the pinch of the cost of living crisis. Research reported by <\/span><a href=\"https:\/\/freshbusinesssolutions.co.uk\/2024\/09\/18\/two-thirds-of-self-employed-freeze-pay-rates\/#:~:text=Rising%20costs%20have%20had%20a,for%20increases%20in%20day%20rates.\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400\">Fresh Business Solutions<\/span><\/a><span style=\"font-weight: 400\"> revealed that 58% of self-employed workers have or are planning to increase their day rates due to cost pressures.<\/span><\/p>\n<p><span style=\"font-weight: 400\">An increase in the personal allowance would boost takings for the self-employed, enabling them to also adjust their <\/span><a href=\"https:\/\/startups.co.uk\/strategy\/pricing-strategy-guide\/\"><span style=\"font-weight: 400\">pricing strategies<\/span><\/a><span style=\"font-weight: 400\"> to offer more affordable products and services.<\/span><\/p>\n<h2>What\u2019s next for the petition?<\/h2>\n<p><span style=\"font-weight: 400\">At the time of writing, the petition currently has 202,657 signatures.<\/span><\/p>\n<p><span style=\"font-weight: 400\">But despite the high amount of support, the government stated that it has \u201cno plans to increase the personal allowance to \u00a320,000\u201d, and that doing so \u201cwould come at a significant fiscal cost of many billions of pounds per annum\u201d.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cThis would reduce tax receipts substantially, decreasing funds available for the UK\u2019s hospitals, schools, and other essential public services that we all rely on,\u201d <\/span><a href=\"https:\/\/petition.parliament.uk\/petitions\/702844\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400\">it added<\/span><\/a><span style=\"font-weight: 400\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cIt would also undermine the work the Chancellor has done to restore fiscal responsibility and economic stability, which are critical to getting our economy growing and keeping taxes, inflation, and mortgages as low as possible.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">Despite the government\u2019s response, parliament will need to consider the petition for debate as it has received over 100,000 signatures. However, a date is yet to be confirmed.\u00a0<\/span><\/p>\n<p>The post <a href=\"https:\/\/startups.co.uk\/news\/personal-allowance-tax-petition\/\">Petition to raise personal tax allowance reaches 200k signatures<\/a> appeared first on <a href=\"https:\/\/startups.co.uk\">Startups.co.uk<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A petition calling for the government to increase the personal tax allowance threshold is once again gaining traction after it was posted on the parliament website last month. In total, the campaign has now reached over 200,000 signatures and is rising daily. Alan Frost, who started the petition, has requested that the government raise the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[],"_links":{"self":[{"href":"https:\/\/metalroofingintallahassee.com\/index.php\/wp-json\/wp\/v2\/posts\/420"}],"collection":[{"href":"https:\/\/metalroofingintallahassee.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/metalroofingintallahassee.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/metalroofingintallahassee.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/metalroofingintallahassee.com\/index.php\/wp-json\/wp\/v2\/comments?post=420"}],"version-history":[{"count":1,"href":"https:\/\/metalroofingintallahassee.com\/index.php\/wp-json\/wp\/v2\/posts\/420\/revisions"}],"predecessor-version":[{"id":421,"href":"https:\/\/metalroofingintallahassee.com\/index.php\/wp-json\/wp\/v2\/posts\/420\/revisions\/421"}],"wp:attachment":[{"href":"https:\/\/metalroofingintallahassee.com\/index.php\/wp-json\/wp\/v2\/media?parent=420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/metalroofingintallahassee.com\/index.php\/wp-json\/wp\/v2\/categories?post=420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/metalroofingintallahassee.com\/index.php\/wp-json\/wp\/v2\/tags?post=420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}