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The previous Conservative Government froze personal allowances until 27/28. It looks likely that Rachel Reeves will not change that and therefor automatically more tax will be taken in due what is now called Fiscal Drag. In previous year personal allowances increased every year in line win inflation. Due to this it is estimated up to 3 million may pay tax for the first time and over 400,000 will be due to pay the higher rates of tax. Some pensioners will also be due to pay taxes perhaps for first time for many years as pensions increases will not be covered by the frozen personal allowances. This may mean completing tax returns online for the first time since retirement with consequential tax bills. The Scottish Budget will follow on 4h December when we will see the Scottish rates. Personal allowances are still controlled by the UK government so we will know that part in todays UK budget.
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