It's happening again...more tax changes

What's happening to tax and tax credits from today?


1. Tax and National Insurance

National Insurance threshold rises to £139 a week from £110
Personal Allowance rises to £7,475, up £1,000

BUT
National Insurance rises from 11% to 12% for employees. Up to 2% (1% before) for earnings over £819 a week
Higher rate income tax threshold cut to £42,475

2. Tax credits

Child element increased to £2,555 from £2,300

BUT
Childcare cover reduced to 70% from 80%
Baby element of £545 withdrawn
Tax credits withdrawn more quickly as income rises
Family element of £545 withdrawn above £40,000