Link The Personal Income Allowance to Minimum Wage

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Link The Personal Income Allowance to Minimum Wage

Additional Information

Make a direct link between the minimum wage and the personal income allowance, using the simple calculation of average working hours multiplied by the minimum wage.

For example - 40 hours per week x £6.31 x 52 weeks per year = £13,125

Going forward, the personal allowance would increase as the minimum wage increases based on the calculation above.

This simple calculation and link would ensure that those on minimum wage are lifted out of tax and remain so. The simplicity would also make it easy for individuals to know if they will be liable for tax or not.

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