Thousands of self-employed workers in our local area paid £593 less tax in their latest returns because of a Liberal Democrat policy to raise the personal allowance, new Treasury figures reveal.
The January 31 deadline for self-assessment was the first to include the Coalition's income tax cut, introduced in April 2013.
It saw the personal allowance - the point at which people start to pay tax - rise to £9,400.
New Treasury figures showed 2.3 million paid £593 less tax in their returns submitted to HMRC.
The Treasury analysis also shows the number of self-employed benefitting from a tax cut will rise to 2.4 Million in 2015/16, with each person saving £825 when they file their returns.
This is because the Liberal Democrats have fought hard to raise the personal allowance to £10,600, which will come into effect this April.
Thousands of self-employed workers in Southwark have benefitted from this tax cut.
Raising the personal allowance not only helps the poorest in society but puts more money of the pockets of everyday local small business owners, who are the lifeblood of our economy.
This is a flagship Liberal Democrat policy and I’m delighted to see that it will make a difference to local people.
Liberal Democrat Chief Secretary to the Treasury Danny Alexander said:
“It’s increasingly widely known that the Liberal Democrat policy of raising the personal income tax allowance will result in a tax cut to millions of working people that will be worth £825 a year to a typical basic rate tax payer on PAYE.
“But what these figures show is that our tax cuts are now flowing through to the self-employed.
“This is a boost to the entrepreneurs of Britain - to the men and women who are doing so much to rebuild our stronger economy and power our growth.”
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