Income Tax: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what estimate she has made of how many full time employees will not be paying income tax when the freeze on personal tax thresholds ends in April 2028.
Answered by James Murray
At the National Minimum Wage rates effective from April 2025 and working 35 hours per week a full-time employee over 21 would earn £22,222.22 –which is above the Personal Allowance of £12,570.
Therefore, when the freeze on personal tax thresholds ends in April 2028 a full-time employee earning at least the minimum wage would have pay more than the personal allowance and thus would be expected to pay Income Tax.
This government is committed to keeping taxes as low as possible for working people while ensuring fiscal responsibility, which is why it will not extend the freeze on personal tax thresholds, allowing them to rise with inflation the following year.
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