would cost the Treasury £1bn. Conservatives said they would consider it but any changes must be "paid for".
Deputy prime minister and Lib Dem leader Mr Clegg said raising the personal allowance to £10,000 - a tax cut "worth £700 to millions of people" - was a "huge step" which he had been campaigning on for years. The cut would be worth £100 a year to 24 million ordinary rate taxpayers, while taking around half a million people out of income tax altogether. Mr Clegg said his preferred method of paying for the tax cut would be to raise taxes on the "super wealthy" through a "mansion tax" but he said the Conservatives would not agree to this. He told the BBC's Andrew Marr programme "we will find other ways" to fund the policy. "It's not agreed yet. It's something I would like to see us deliver as a coalition government in the next budget," he added. The basic rate of income tax is 20% so an extra £500 on the personal allowance would cut tax by £100 for anyone earning £10,500 or more, though people earning over £100,000 get reduced personal allowance or none at all. Mr Clegg said the Liberal Democrats' "long-term ambition" was to "make sure no one pays any income tax on the equivalent of the minimum wage, which is around £12,500". The personal allowance for under 65s was £6,475 when the coalition came to power and it has risen in each of the last three tax years to its current level of £9,440. The government has already agreed to raise it to £10,000 from April, and Mr Clegg's latest proposal would take effect in April 2015 - just before the next general election.
Personal allowance
2010/11 - £6,475 2011/12 - £7,475 2012/13 - £8,105 2013/14 - £9,440 2014/15 - £10,000
The Married Couples (Tax Allowance) Bill 2013-14 has been withdrawn
26 November 2013
The Private Members’ Bill to make provision for a tax allowance for married couples was presented to parliament on 24 June 2013. It was expected to have its second reading debate on 29 November 2013 but it has now been announced that the Bill has been withdrawn and will not progress any further.
Find out more about this Bill
A new electronic message to help employers keep up to date with their PAYE
12 December 2013
HMRC is introducing another new message to help employers keep their PAYE up to date.
This electronic message tells the employer that they haven't sent one or more of the Full Payment Submissions (FPS) that were expected for the last month. It reminds the employer that they must send an FPS each time they pay their employees.
HMRC will start to issue these messages gradually so they can monitor and review the message service to ensure it is as efficient and thorough as possible.
CIPP Policy News Journal
16/04/2014, Page 300 of 519
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